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About Bankruptcy
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The United States Constitution provides a method
whereby individuals, burdened by excessive debt, can obtain a fresh
financial start and pursue newly productive lives unimpaired by past
financial problems. It is an important alternative for persons mired deep in
financial difficulty.
The federal bankruptcy laws were enacted to provide debtors with a fresh
start and to establish a ranking and equity among all the creditors who are
clamoring for the debtor's limited resources. Bankruptcy helps people avoid
the kind of permanent discouragement that can prevent them from ever
reestablishing themselves as hard-working members of society. Also,
creditors are ranked so that the debtor's nonexempt property can be fairly
distributed according to established rules guaranteeing identical treatment
to all creditors of the same rank.
This discussion is intended only as a brief overview of the types of
bankruptcy filings and of what a bankruptcy filing can and cannot do. Anyone
considering this course of action is encouraged to seek the advice and
assistance of an attorney specializing in bankruptcy law.
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