Bankruptcy helps people who can no longer pay their debts get a fresh start.
This is the statement that comes at the very top of the page for the United States Bankruptcy Courts. Every accountant and attorney who has ever taken a class on Bankruptcy has heard this said in the first five minutes of the first day of class.
Bankruptcy is first and foremost a societal method to help a person who cannot pay their debts (the “Debtor”). Current Bankruptcy laws also try to make things as fair as possible to the people who are owed money (the “Creditors).
But we always need to remember that Bankruptcy is there to protect the Debtor.
Continue Reading Condominiums, Homeowners’ Associations and Bankruptcy: What is Bankruptcy?