Bankruptcy Bankruptcy Bankruptcy was designed for people who find themselves in a severe financial crisis that is beyond their control such as illness, loss of a job, divorce or death of a spouse. It gives people with excessive debt an opportunity to make a fresh start by reducing or eliminating the debt through a court order called a discharge.
Bankruptcy is a constitutional right, governed by state and federal law.
If the court grants a petition declaring a person unable to pay his or her debts, a trustee divides the debtor's property and pays each creditor as fully as possible. Bankruptcy is never a pleasant experience, but it does provide people with an opportunity to deal with severe debt problems. Find out why you don't want to go into bankruptcy and what steps you should take to make sure doesn't happen to you. All rights reserved.