This area of the law is dominated by federal statutes. Attorney, Mark J. Markus , is a primary participant in the Bankrupcty Law Questions Bulletin Board. It includes articles on Using Plastic, Strategies for Repaying Debts, Student Loans, Debt Collections, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Credit Repair . See our bookshop for self-help law books from Nolo Press and other publishers. The general concept of bankruptcy is something that most people know, but the specifics are somewhat elusive.
Bankruptcy is provided for in the U.S. Constitution.
This was not a very sociably desirable result, since perfectly productive people were not only unable to pay their debts, they also were unable to support their families. Governments began to abolish debtor's prison and to develop laws by which people could have relief from their debts. Bankruptcy reaches a number of important social goals, such as providing people with financial relief when they are overwhelmed by problems over which they have no control. It also makes a better environment for entrepreneurs, because without the safety net of bankruptcy relief, individuals and companies would be less willing to take financial risks. Bankruptcy does not eliminate all debt.