Bankruptcy: A Protection Unique to the United States

Posted on March 14, 2018. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts | Tags: |

Although several countries have bankruptcy laws of one variety or another, most are designed to assist businesses in financial trouble. The United States is unique in that it is one of very few that have a bankruptcy system designed to assist the consumer debtor.

The New York Times has a recent article describing the horrors of a country without such a bankruptcy law to act as a safety net for the honest, but unfortunate debtor. The article describes how one Afghani man owed a debt that almost required him to sell his 6 year old daughter in marriage to the creditor when he could not repay the debt.  Thankfully at the last minute, someone paid his debt for him averting disaster.  But how many times in Afghanistan and other countries do debts go unpaid and a child is lost ?  The man had originally borrowed the money to pay for medical bills.

Let us be thankful that we live in a society that allows the honest but unfortunate person to be protected from such evils as described in this article, or other evils such as debtor prisons or involuntary servitude to the creditor.

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Even George Washington Had Creditors Hounding Him

Posted on February 28, 2018. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts | Tags: |

That’s right,  as far back as 1764, before the founding of the United States of America, our future first President and founding father George Washington was hounded by creditors.

In writing to one of his creditors, he said:

“… it is but an irksome thing to a free mind to be any ways                                     hampered in debt.”

In other words, he was saying if you have debt you can’t pay,  you will never be free from worry, possibly  harming your health and your ability to care for your family.

Quite possibly, and most historians agree, this is why our founding fathers placed in our Constitution the ability for Congress to pass laws allowing for bankruptcy. In a break from the past, our founders wanted citizens of the new United States to be able to get a fresh start, should that be needed and justified.

So,  if debt is a worry and concern to you,  you  are not alone … George Washington suffered with it as well, and because he did, he and his compatriots gave you the right to get a fresh start.

Don’t jeopardize your health and your family.   If you  think you need to consider bankruptcy, contact an experienced bankruptcy lawyer today.

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The Bankruptcy Law and the US Constitution

Posted on March 15, 2016. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts | Tags: , , |

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The federal government enacted the Bankruptcy Law, as provided for in the US Constitution,  to protect and aid persons and businesses who find themselves trapped in a financial situation in which they can not survive without help. It  can also allow a way to restructure their debts to the benefit of themselves and their creditors. To find out if it can be of help to you, contact an experienced bankruptcy attorney today.

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What happens if I miss some payments to the Chapter 13 Trustee in my Bankruptcy ?

Posted on July 16, 2013. Filed under: Chapter 13 Bankruptcy, Consumer Alerts | Tags: , , , , , |

For example, what if I have some emergency?

It is important for you not to miss any payments to the Trustee. When you file your Chapter 13, you get the benefit of prohibiting your creditors from taking any action against you. In exchange for that relief, you must complete your obligations under the plan. One of those obligations is making your payments to the Trustee on time as required. If you miss payments, the Trustee cannot pay your creditors as called for by your plan and the Trustee will be obligated to file papers with the Bankruptcy Court asking that your case be dismissed. If your case is dismissed, your creditors will be notified and they may resume collection against you.

If there is a serious change in your circumstances, you should notify your attorney as soon as possible, even before you miss a payment. Your attorney can reevaluate your financial situation and, if appropriate, modify your plan to reflect the changed circumstances. This process can take several weeks, so be sure to contact your attorney immediately if you foresee any problems with your payments.

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