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 hire a real estate attorney?
It's really a great idea to hire a real estate attorney early on because it will help you save more time and money as well as defend you from various ...
READ MORE
Bankruptcy
Bankruptcy laws are made for the help of the people who can no longer pay their creditors get a chance to pay that is by liquidating assets or by creating ...
READ MORE
Bankruptcy filling without an attorney
Within the 2005 legal guidelines, customers have to choose credit score guidance before submitting a new individual bankruptcy request. Consumers are also subjected to an easy method check, to determine ...
READ MORE
How landlords can check a tenant’s credit report?
There are private credits reporting agencies that collect credit files and other consumer information and sell them. Landlords can get the credit report of their tenants through these agencies. Landlords ...
READ MORE
Miranda Rights Legal Services
Miranda warning, also referred to as Miranda rights, is a caution given by the police in the U.S. Declares to lawful thinks in cops lawful care (or in a lawful ...
READ MORE
How a real estate attorney can help you during your home purchase
There are different kinds of real estate transactions such as commercial leases, residential rentals, single-family home, and investment property transactions. To make sure that your real estate transactions run smoothly, ...
READ MORE
Expenses in a DUI case
DUI case or Intoxicated driving is the act of working or generating an automobile while under the impact of liquor or medication to the level that psychological and engine skills ...
READ MORE
Risks and Benefits of buying a foreclosed property
Buying foreclosure property may give you great discounts; however, there are various underlying risks to it too. Benefits Pre-foreclosure home owners want to sell their houses in a hurry to avoid foreclosure, ...
READ MORE
Know Civil lawsuits to avoid them
If you are taking a proceeding or a case of some wrong act, it might be known either as "civil" or may be "criminal" suit. Scrutinize these 2 forms of ...
READ MORE
Procedures when a law enforcement officer has reason to suspect a driver is intoxicated
Dui (DUI) means operating a automobile after consuming liquor or drugs that have affected a person's mental or engine skills. In most declares, a person will be considered "impaired" if ...
READ MORE
How to hire a real estate attorney?
Bankruptcy
Bankruptcy filling without an attorney
How landlords can check a tenant’s credit report?
Miranda Rights
How a real estate attorney can help you
Expenses in a DUI case
Risks and Benefits of buying a foreclosed property
Know Civil lawsuits to avoid them
Procedures after DUI