Borrowing can be a powerful financial tool for those who do so responsibly. On the other hand, even debtors who originally took on reasonable seeming levels of debt can run into financial problems.
When that happens, it will sometimes make sense to pursue chapter 7 bankruptcy. This form of relief from debts for individuals can be a comprehensive answer to problems that might otherwise be insoluble. Consulting with a bankruptcy attorney to see whether the process might afford a particular person a fresh start will always be helpful.
A Well Established Means of Discharging Debts and Moving On with Life
Many years ago, individuals who became unable to pay their debts were commonly sentenced to serve terms in special prisons. While that might have served as something of an incentive for others to be more careful with their borrowing, the costs associated with this arrangement were significant.
In particular, putting debtors in prison never helped to make their creditors whole, despite depriving the broader economy of the contributions these individuals might have made had they remained free. It eventually became clear that a more practical stance on the matter would be more productive, and that realization became the impetus for today’s bankruptcy laws.
Federal statutes and regulations govern the entire chapter 7 bankruptcy process, meaning that debtors anywhere in the country can count on the same protections and opportunities as those elsewhere. Special bankruptcy courts and dedicated judges handle all individual bankruptcy cases, with the regularity and predictability that results benefiting many people every year.
Starting Again with a Clean Slate
While the process of obtaining relief under the bankruptcy laws can be complex, attorneys are inevitably able to maximize their clients’ chances of success. In order to be sure of having protection granted, a debtor will need to be able to fully document every financial detail and development, lest the court decided that an incomplete picture of the situation precludes any further action.
Creditors are also entitled to respond to bankruptcy files and to object to plans for discharging debts. Once again, lawyers who represent debtors are typically best positioned to ensure that any such arguments will be defeated so that protection can be secured.
As a result, those who make the effort to seek out legal representation for their own bankruptcy cases tend to enjoy the most rewarding results. While filing for bankruptcy is inevitably a significant, momentous move, it can also be the most important step toward a future finally freed of the pressure and limitations that unmanageable debt can impose.