Sunday, February 4, 2007

Bankruptcy Code

Becoming bankrupt is not something that many people think about. There are occasions when this will happen and these individuals will need to file for bankruptcy.

The various chapters of bankruptcy like chapter 13, and chapter 11 are taken from the bankruptcy code. This code was established by the US congress.

These laws were put in place so that there was a uniform law about bankruptcy that could be found throughout the US.

These laws from the bankruptcy code are designed to protect the person who is in debt from further problems.

There are currently four main types of bankruptcy laws that are taken from the bankruptcy code. You will recognize these bankruptcy laws as chapters.

Chapter 11 is one of the bankruptcy laws that can be found in the bankruptcy code under the heading chapter 11.

The different chapters within the bankruptcy code provide information for people who are in debt. The various ways that the law can work to keep you safe from undue hassles can be found within the pages of the bankruptcy code chapters.

While the US government has provided the framework for these laws of the bankruptcy code each state has the right to pass other laws that will work in accordance with the bankruptcy code.

The states can only provide other laws that are compatible with their state’s laws. Otherwise the states themselves don’t have the power to govern how the bankruptcy code works.

There are many different and new laws that you can find when you look through the bankruptcy code. One of the new laws that you will find is the altered state of the debtor-creditor relationship.

While the different states can’t alter the basic rules of the bankruptcy code they do have the right to interpret how these bankruptcy claims are filed and acted on in their respective states.

If there is a major change to the bankruptcy code this change will be passed by congress. One such change that has taken effect alters the rules of bankruptcy for chapter 7. In this part of the bankruptcy code all debtors must prove that they have the right to file for bankruptcy.

They will be allowed to file for bankruptcy only if these people have fulfilled a counseling session. This step has been taken to ensure that the bankruptcy code is not being misused by the various individuals who want to avoid paying their various debts.

As the bankruptcy code has been placed for our protection it is best if you treat these laws with respect.

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