OVERVIEW - BANKRUPTCY

 

Bankruptcy law is a fairly complicated subject, always changing depending on the nation's political climate. In general, however, bankruptcy allows one to get a fresh start from overwhelming and frustrating amounts of debt. A person fi ling for bankruptcy is known as a DEBTOR.

The general public may mistakenly think that a debtor avoids paying debts in a malicious and deceitful way. In the vast majority of cases, debtors did not have an intention to avoid paying a debt back; making an argument to the contrary is akin to arguing that creditors made loans knowing that the debtors could not could not be paid back.

Many people also feel that bankruptcy is immoral or that God would disagree with bankruptcy; sadly, these people are ignorant of the origins of bankruptcy in the Bible. Specifically, the Bible says the following:

At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the LORD's time for canceling debts has been proclaimed. (Deuteronomy 15:1-2, New International Version)

Bankruptcy helps many people get their lives back, out from underneath mountains of unsustainable debt. A debtor who files bankruptcy will be restricted in the amount of assets that he keeps. Federal and state law dictates these restrictions known as EXEMPTIONS.

The basis of bankruptcy law is the following: allow a debtor to start fresh as long as he played fair, does not have too many assets, and does not earn too much income.

With guidance from Adrian Lynn & Associates, P.A., you will decide whether bankruptcy can help you get a fresh start.