Declaring bankruptcy is one of the many options a debtor can perform when he can no longer meet the terms of his financial obligations to his creditors. In the United States of America, bankruptcy is governed by the US constitution and the Congress has enacted laws that will govern the procedures in the filing of bankruptcy. Some of these laws were short lived. However, there is now a uniform federal law  pertaining to bankruptcy which is now an emerging trend in the US. It is no longer considered shameful to file a petition for bankruptcy. Individuals can file bankruptcy under Chapter 7 or Chapter 13 of the Code.If the debtor files under Chapter 7, he surrenders his non-exempt properties to a trustee who shall liquidate and distribute the properties to the creditors while under Chapter13, the debtor retains ownership of his properties but must give a portion of his future income to his creditors.

In filing a bankruptcy which is frivolous and for the sole purpose of evading  financial obligations, there are legal implications and can be considered a bankruptcy crime under the provisions of Title 18 of the United States Code. There are also tax implications attached in the filing a bankruptcy and this is governed by the US Internal Revenue Code.

There is also a law that was enacted to prevent the abuses committed by debtors in filing bankruptcy to the detriment and prejudice of the creditors. To address these abuses, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005.

In filing a bankruptcy, the debtor is allowed to retain properties with sentimental value. There are also assets which are protected from being garnished by the creditors such as social security payments, books and unemployment compensation. The tools used in the trade are also exempt.

Related Posts
Student loan defensible? some facts
Education is the paradigm for success. Students go for higher education in order to replenish their monetary requirements, for their safe future and a sound life. But, when you witness ...
READ MORE
Stockton chapter 9 Bankruptcy
Just like the organization, companies and individual can declare themselves bankrupt, so does a municipality can. The basic difference lies in the chapter, which will be filed to handle the ...
READ MORE
Traffic Laws in the US
Traffic laws in the United States vary because every state enacts its own regulations and laws. America has a strict judicial system. There are different sets of traffic laws in ...
READ MORE
Why Should a Landlord Hire a Lawyer?
If you have some real estate properties on rent, you may not need a staff lawyer, but it would be best to consult a lawyer constantly. Just like any other ...
READ MORE
Basics for Sole Proprietorship
Are you a writer or a photographer? Are you an individual who takes on jobs on a contract basis? Are you a freelance caterer who gets paid per booking? Or ...
READ MORE
Pulled Over By police officer
When a police officer pulls you over, there are certain steps you must take to make it easier for you to challenge the ticket in court. When you hear the siren ...
READ MORE
How lawyers can help real estate investors or buyers?
In many ways, a real estate lawyer can help real estate investors or buyers more than a real estate agent can. That's because they know all the complexities of real ...
READ MORE
Stockton exit imposed losses on bondholders
The date of February 25, 2015 witnessed a new chapter in the life of the Stockton community. It was this day when the bankruptcy exit plan became effective. There were ...
READ MORE
How to check your landlord?
Just as the landlord screens the tenants, you should also check out your landlord. Your landlord wants to know if you are diligent in paying the rent. You should also ...
READ MORE
Need To File Bankruptcy
Chapter 7 bankruptcy can be filed easily depending upon your case. Also charges to file your case can go from free to higher again depending up the case. You can ...
READ MORE
Student loan defensible? some facts
Stockton chapter 9 Bankruptcy
Traffic Laws in the US
Why Should a Landlord Hire a Lawyer?
Basics for Sole Proprietorship
Pulled Over By police officer
How lawyers can help real estate investors or
Stockton exit imposed losses on bondholders
How to check your landlord?
Need To File Bankruptcy