Generally there are two purposes of bankruptcy. Bankruptcy offers a fresh start for the debtor and treats all of the creditors fairly. In most cases involving consumer debtors, the fresh start is the most significant, because there are usually few assets to be liquidated and distributed to the creditors.
The Fresh Start
The “fresh start” concept encompasses the goal of allowing individuals (or married couples) who have become mired in debt to free themselves from that debt and engage in financially productive enterprises unburdened by their past fiscal problems. The Supreme Court of the United States has described the fresh start as “a new opportunity in life, unhampered by the pressure and discouragement of pre-existing debt.” In essence, bankruptcy serves to assist in the continued performance of a capitalist economy. It helps to reduce the harsh outcomes for those who are unsuccessful in the free market economy, but encourages risk taking by limiting that risk.
Equity of creditors is addressed by the statutes that guarantee that creditors in similar circumstances will be treated identically. Those statutes were undermined somewhat in 2005 which prevent some debtors from achieving a “fresh start” and provide that some types of creditors receive special treatment, student Loans being the prime example.
Chris Wesner Law Can Help
If you are considering bankruptcy protection, please contact an experienced bankruptcy attorney. Our office is available for a free consultation at any of our five Ohio locations. Call 1 (877) 350-6039 or Toll free at (855) 339-8001 to schedule yours. Let your “fresh start” begin today!