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
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
Questions which should be asked to a real estate attorney
Afterall, you are going to invest a good nest egg on it and real estate transactions are undoubtedly important. There are a plenty of things to consider when buying or ...
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
Why should you buy investment property under your own name?
Because it is your investment, you can always choose where to name your investment property. If you so decide to put your property under your name, below are the advantages you ...
READ MORE
Buying or Selling real estate property
If you are not an expert in buying or selling a real estate property, you need the help of a sales agent to walk you through the entire process. You ...
READ MORE
Help with divorce cost
Divorce is anyway not a very pleasant experience. And when you consider the emotional, physical and financial trauma two of them undergo, it is really tedious to deal with it. ...
READ MORE
The landlord’s right in evict tenants
Every state in US has the unique Rent Control Acts and this is to be protected in the right manner surely. There should indeed be a valid reason behind everything ...
READ MORE
The Consequences of Getting a Ticket
It is the penalties and the fines that irk people so much every time they get pulled over for traffic ticket. The citation can greatly affect the driving privileges and ...
READ MORE
Alimony Legal Services
When a married couple gets a divorce, a family court judge may order one spouse to make monthly "alimony" or spousal support payments to the other, based either on a ...
READ MORE
Power of Attorney
Power of Attorney is a lawful document which grants you the legal right to appoint another individual to act on your behalf and manage your financial affairs, property or health ...
READ MORE
How to check your landlord?
Questions which should be asked to a real
How lawyers can help real estate investors or
Why should you buy investment property under your
Buying or Selling real estate property
Help with divorce cost
The landlord’s right in evict tenants
The consequences of getting traffic ticket
Alimony Legal Services
Power of Attorney