Purpose of Bankruptcy - Revision history

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176.31.17.43 at 06:48, 31 December 2012

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176.31.17.43: Created page with "A legal proceeding regarding a person or business which is struggle to pay back unpaid debts. The bankruptcy process begins with a petition filed by the borrower (most common) or..."

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Created page with "A legal proceeding regarding a person or business which is struggle to pay back unpaid debts. The bankruptcy process begins with a petition filed by the borrower (most common) or..."

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A legal proceeding regarding a person or business which is struggle to pay back unpaid debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of creditors (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to pay back a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred before filing for bankruptcy.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors by way of reorganization or liquidation. Theoretically, the ability to file for bankruptcy may benefit an overall economy by giving persons and businesses another chance and offering creditors with a measure of debt repayment.

Bankruptcy filings in the United States can fall under one of several chapters of the Bankruptcy Code, such as Chapter 7 (that involves liquidation of assets), Chapter 11 (company or personal "reorganizations") and Chapter 13 (debt repayment with reduced debt covenants or payment plans). Bankruptcy filing specifications vary widely among different nations, resulting in higher and lower filing rates depending on how easily a person or company can finish the procedure.

Bankruptcy in the United States is a issue placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States". The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, found at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.

While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, specifically based on the validity of claims and exemptions, are often based upon State law. State law therefore plays a major part in several bankruptcy cases, and it is often impossible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law throughout state lines.

Commonly, a debtor declares bankruptcy to get relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.

The purpose of bankruptcy is two fold:

(1) to offer the debtor (the party filing bankruptcy) a fresh start and

(2) to pay creditors in an orderly fashion. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.

@@ Line 1: / Line 1: @@
-A legal proceeding involving a person or small business that is struggle to pay back outstanding debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of creditors (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to pay back some of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred prior to submitting for bankruptcy.
+A legal proceeding regarding a person or business that is struggle to repay unpaid debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay some of outstanding debt. After the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before filing for bankruptcy.
-Bankruptcy laws help people who can no more pay their creditors get a fresh start - by liquidating assets to pay their debts or by building a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and offering creditors with a measure of debt repayment.
+Bankruptcy laws help people who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also safeguard struggling businesses and provide for orderly distributions to business creditors by way of reorganization or liquidation. Theoretically, the capability to file for bankruptcy may benefit an overall economy by giving individuals and businesses another chance and offering creditors with a measure of debt repayment.
-Bankruptcy filings in the United States can fall under one of many chapters of the Bankruptcy Code, such as Chapter 7 (that involves liquidation of property), Chapter 11 (company or personal &quot;reorganizations&quot;) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely between different countries, leading to higher and lower filing rates based on how easily a person or business can complete the procedure.
+Bankruptcy filings in the United States can fall under one of several chapters in the Bankruptcy Code, such as Chapter 7 (that involves liquidation of assets), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with reduced debt covenants or payment plans). Bankruptcy filing specifications vary widely among various nations, leading to higher and lower filing rates based on how easily an individual or business can complete the process.
-Bankruptcy in the United States is a issue placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.
+Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, mainly in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state laws.
-While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, especially based on the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a significant role in several bankruptcy cases, and it is often not possible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
+While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly based on the validity of claims and exemptions, are often based upon State law. State law therefore performs a major role in several bankruptcy cases, and it is often impossible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
-Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or even through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
+Normally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
-The purpose of bankruptcy is two-fold:
+The goal of bankruptcy is two fold:
-(1) to offer the debtor (the party filing bankruptcy) a fresh start and
+(1) to give the debtor (the party filing bankruptcy) a fresh start and
-(2) to pay creditors in an orderly fashion. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.
+(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which often trumps state law when it comes to the actions of both the debtor and creditors.

@@ Line 1: / Line 1: @@
-A legal proceeding regarding a person or business which is struggle to pay back outstanding debts. The bankruptcy process starts with a petition filed by the borrower (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before filing for bankruptcy.
+A legal proceeding involving a person or small business that is struggle to pay back outstanding debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of creditors (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to pay back some of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred prior to submitting for bankruptcy.
-Bankruptcy laws assist people to who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also protect troubled companies and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy may benefit an overall economy by giving individuals and businesses one more opportunity and providing creditors with a measure of debt repayment.
+Bankruptcy laws help people who can no more pay their creditors get a fresh start - by liquidating assets to pay their debts or by building a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and offering creditors with a measure of debt repayment.
-Bankruptcy filings in the United States can fall under one of several chapters of the Bankruptcy Code, such as Chapter 7 (which involves liquidation of property), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely between different countries, leading to higher and lower filing rates depending on how easily an individual or company can finish the process.
+Bankruptcy filings in the United States can fall under one of many chapters of the Bankruptcy Code, such as Chapter 7 (that involves liquidation of property), Chapter 11 (company or personal &quot;reorganizations&quot;) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely between different countries, leading to higher and lower filing rates based on how easily a person or business can complete the procedure.
-Bankruptcy in the United States is a issue placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, mainly in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state laws.
+Bankruptcy in the United States is a issue placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.
-While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major part in many bankruptcy cases, and it is often impossible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
+While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, especially based on the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a significant role in several bankruptcy cases, and it is often not possible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
-Usually, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
+Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or even through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
-The goal of bankruptcy is two-fold:
+The purpose of bankruptcy is two-fold:
-(1) to give the debtor (the party filing bankruptcy) a fresh start and
+(1) to offer the debtor (the party filing bankruptcy) a fresh start and
-(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.
+(2) to pay creditors in an orderly fashion. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.

@@ Line 1: / Line 1: @@
-A legal proceeding regarding an individual or business which is unable to pay back outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay some of outstanding debt. After the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before submitting for bankruptcy.
+A legal proceeding regarding a person or business which is struggle to pay back outstanding debts. The bankruptcy process starts with a petition filed by the borrower (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before filing for bankruptcy.
-Bankruptcy laws help people who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by building a repayment plan. Bankruptcy laws also protect struggling firms and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy can benefit an overall economy by giving individuals and businesses another opportunity and offering creditors with a measure of debt repayment.
+Bankruptcy laws assist people to who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also protect troubled companies and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy may benefit an overall economy by giving individuals and businesses one more opportunity and providing creditors with a measure of debt repayment.
-Bankruptcy filings in the United States can fall under one of many chapters of the Bankruptcy Code, such as Chapter 7 (that involves liquidation of assets), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with reduced debt covenants or payment plans). Bankruptcy filing specifications vary widely among different nations, resulting in higher and lower filing rates depending on how easily a person or business can finish the process.
+Bankruptcy filings in the United States can fall under one of several chapters of the Bankruptcy Code, such as Chapter 7 (which involves liquidation of property), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely between different countries, leading to higher and lower filing rates depending on how easily an individual or company can finish the process.
-Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, found at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state laws.
+Bankruptcy in the United States is a issue placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, mainly in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state laws.
-While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
+While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major part in many bankruptcy cases, and it is often impossible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
-Usually, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or even through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
+Usually, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
-The goal of bankruptcy is two fold:
+The goal of bankruptcy is two-fold:
-(1) to offer the debtor (the party filing bankruptcy) a fresh start and
+(1) to give the debtor (the party filing bankruptcy) a fresh start and
-(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which often trumps state law when it comes to the actions of both the debtor and creditors.
+(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.

@@ Line 1: / Line 1: @@
-A legal proceeding involving a person or small business that is struggle to repay outstanding debts. The bankruptcy process begins with a petition filed by the borrower (most common) or on behalf of creditors (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.
+A legal proceeding regarding an individual or business which is unable to pay back outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of lenders (less common). All of the debtor's property are measured and evaluated, whereupon the assets are used to repay some of outstanding debt. After the successful completion of bankruptcy proceedings, the debtor is relieved from the debt obligations incurred before submitting for bankruptcy.
-Bankruptcy laws help people who can no more pay their creditors get a fresh start - by liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also safeguard troubled firms and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy can benefit an overall economy by giving persons and businesses one more chance and providing creditors with a measure of debt repayment.
+Bankruptcy laws help people who can no longer pay their creditors get a fresh start - by liquidating assets to pay their debts or by building a repayment plan. Bankruptcy laws also protect struggling firms and provide for orderly distributions to business creditors by way of reorganization or liquidation. In theory, the capability to file for bankruptcy can benefit an overall economy by giving individuals and businesses another opportunity and offering creditors with a measure of debt repayment.
-Bankruptcy filings in the United States can fall under one of many chapters of the Bankruptcy Code, such as Chapter 7 (which involves liquidation of property), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with lowered debt covenants or payment plans). Bankruptcy filing specifications vary widely between different nations, resulting in higher and lower filing rates based on how easily an individual or business can complete the procedure.
+Bankruptcy filings in the United States can fall under one of many chapters of the Bankruptcy Code, such as Chapter 7 (that involves liquidation of assets), Chapter 11 (company or individual &quot;reorganizations&quot;) and Chapter 13 (debt repayment with reduced debt covenants or payment plans). Bankruptcy filing specifications vary widely among different nations, resulting in higher and lower filing rates depending on how easily a person or business can finish the process.
-Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, mainly in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or specifically defers to state laws.
+Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), that allows Congress to enact &quot;uniform laws on the subject of bankruptcies throughout the United States&quot;. The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, found at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state laws.
-While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, especially based on the validity of claims and exemptions, are usually based upon State law. State law therefore plays a significant role in several bankruptcy cases, and it is usually not possible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law throughout state lines.
+While bankruptcy cases are usually filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalise [http://www.chillicious.com/finance/selecting-the-right-bankruptcy-attorney/ bankruptcy] law across state lines.
-Normally, a debtor declares bankruptcy to get relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
+Usually, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or even through a restructuring of the debt. Usually, whenever a debtor files a voluntary petition, his or her [http://www.chillicious.com/finance/understanding-credit-card-bankruptcy/ bankruptcy] case commences.
 The goal of bankruptcy is two fold:
@@ Line 15: / Line 15: @@
 (1) to offer the debtor (the party filing bankruptcy) a fresh start and
-(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which usually trumps state law when it comes to the actions of both the debtor and creditors.
+(2) to pay creditors in an orderly manner. [http://www.chillicious.com/debt-consolidation/what-you-should-know-about-bankruptcy/ Bankruptcy] is governed by federal law which often trumps state law when it comes to the actions of both the debtor and creditors.