Bankruptcy lawyer Jordan E. Bublick offers experienced chapter 7 and chapter 13 bankruptcy counsel and representation for individuals who are unable to manage the burden of their debt, including mortgages, credit cards, personal loan, medical bills, and taxes.
Federal Bankruptcy Laws
The United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Pursuant to this grant of authority, Congress enacted the Bankruptcy Code in 1978 which governs bankruptcy cases in the United States. The procedural aspects of the bankruptcy process are are governed by the Federal Rules of Bankruptcy Procedure and the official Bankruptcy Forms. There are bankruptcy courts with bankruptcy judges in each of the judicial districts across the country.
Types of Bankruptcy
The different types of bankruptcy are usually referred to by their chapter in the U.S. Bankruptcy code. Individuals may file Chapter 7 or Chapter 13 bankruptcy depending on their circumstances. Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize. Family Farmers may file for relief under Chapter 12. Muncipalities may file under Chapter 9 to reorganize.
One of the principal goals of the federal bankruptcy laws enacted by Congress is to give a person a financial “fresh start” from burdensome debt. The United States Supreme Court explained that the purpose of the “fresh start” is to give to the “honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” This goal is accomplished through the bankruptcy discharge, which releases a person from personal liability from certain debt.
Upon the filing of a bankruptcy case, the automatic stay is generally imposed to stop lawsuits, foreclosures, garnishments, and collection activity against the debtor. Certain actions, such as certain regulatory actions, are not stayed.