Bankruptcy Law Can Be Used For Debt Elimination
Many people in our current economic situation are lucky the US does not have debtors prison. Recently the there was an article describing how foreigners are now fleeing Dubai to avoid debtors’ prison. Dubai’s economy, heavily reliant on real estate, is crashing and as many as 3000 cars are purposely abandoned at the Dubai airport, left behind by fleeing, debt ridden foreigners, a stark sign of the times, to be sure.
It makes one appreciate being able to file for bankruptcy, which exists in most of the developed world for people who cannot pay their debts. Debtors’ prisons were abolished in the US on the federal level in 1833 and most states followed suit soon thereafter.
Bankruptcy Law is not a modern idea as the issue is mentioned throughout history, going back as far as ancient Hebrew texts. As an individual, you have two primary options for protection whether you live in California, Florida, Michigan, or any other state. US bankruptcy laws are federal and apply to every state. You can file chapter 7, in which you asked the court to erase all debts included in your filing documents. In return, you agree to turn over the majority of your assets to the court. They will convert these items into cash and pay your creditors as much and as thoroughly as possible. You will receive after filing Chapter 7 bankruptcy complete debt elimination. This is the main benefit of bankruptcy and why 1 million people a year use this to get their finances back on track.
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