Bankruptcy A Debt Relief Solution And More

• Written by Dick Pendergraft
• Posted June 29, 2011 at 11:28 am

It is not new to hear that each person deserves a second chance. A fresh new start will be given to the people who are bound with great debts through the consumer bankruptcy system that the state provides.The consumer bankruptcy system provides such a second chance to individuals who, for any number of reasons, have become overwhelmed by the burden of debt. The specific purpose of bankruptcy is to help people who have been in a great financial distress

The bankruptcy discharge eliminates the legal obligation to repay the debts that were acquired before bankruptcy.There are these bankruptcy exemptions which allows people to keep their valued personal properties to be claimed by the creditors.

The idea of giving second chances to financially losing persons under federal law is not new, it?s been existing for over 2 decades. The Bankruptcy Act of 1800 was really a good news for many debtors for through this act, they are discharged from their debts plus with exemptions for certain properties as stated in the law. The United States Supreme Court in the 1934 stated that the Bankruptcy Act was established in order to ?relieve the honest debtor from the weight of oppressive indebtedness and permit him to start afresh?? with ?a new opportunity in life and a clear field for future effort.?

The main purpose of the consumer bankruptcy is for some business who fell down to start anew and this purpose have been the at most theme in the history of bankruptcy in the United States. Because of the rise of the new bankruptcy law, most people have lost the belief that that bankruptcy law can give someone who is deeply indebted to be relief from debt. Due to the things that were issued in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, many people have the misconception that consumer bankruptcy relief may not at all times happen to aid debtors.

This act has been functioning and is largely the result of a massive effort on the part of banking industry lobbyists and light on ?Consumer Protection.? Many Americans took advantage of the Consumer Bankruptcy Protection that is why the BAPCPA have came to an idea of adding some provisions that would help prevent the people to make some abuses to in just simply declaring Bankruptcy. These provisions include means-testing, supposedly intended to ensure that the availability of bankruptcy relief was based on the need.

Consumer bankruptcy is truly a complicated thing and may be expensive for the consumers but then a good relief to debts await. Although there has been a decrease in the number of bankruptcy filings after the BACPA has been passed, the number of filings nowadays are somewhat proportional to the filings during the pre-BACPA. Most banking industries have made some impression in the people that the consumer bankruptcy protection has been used by a lot of people who pretend to be in financial turmoil. Since the start of the 19th century, the debt relief program of the consumer bankruptcy system never ceased to help people who are struck with financial loss.

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Source: http://bankruptcy.financenewstoday.com/bankruptcy-a-debt-relief-solution-and-more/

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