Individual Bankruptcy

A Fresh Start

Bankruptcy seems like the end of the financial road to most individuals. While this may technically be true, filing for bankruptcy is ideally supposed to help an individual to get back onto his feet. While it is in real life a more complicated process than this, individuals do not have to resign themselves to having no financial future because they had to file for bankruptcy. Learning more about the subject can be very valuable for individuals who find themselves in financial trouble or who simply want to be aware of the subject and the process of bankruptcy.

A Fresh Start

Bankruptcy is in its simplest nature designed to give individuals a fresh start. It does so by relieving debts that people have been unable to pay themselves. Bankruptcy takes a person’s assets and divides them so as to pay the person’s creditors in a timely and organized manner. This enables people ideally to manage their debt in a very organized way and to get back onto their feet. While initiating bankruptcy may be the only alternative for some people who are stuck in an endless cycle of debt, it is not always a person’s saving financial grace.

There are some aspects of finance that are not covered or protected by bankruptcy. Certain taxes and loans –like government guaranteed student loans- are not typically dismissed –or discharged- when a person files for bankruptcy. This means they may not automatically be paid by the person’s assets. Whereas debts are usually considered satisfied after a person files for bankruptcy –even if the person’s total assets didn’t cover the entire debt- this may not always be the case in some situations. Debt that has been “tainted” by acts like embezzlement and other criminal acts may not be covered, either.

People who are considering filing for bankruptcy need to speak with a financial adviser to determine how filing for bankruptcy could help or hinder their situation. It is always better to investigate every option before settling on one. Doing so can save people a great deal of trouble in the long run.
  • History of Bankruptcy

    The word Bankruptcy comes from the Latin word “bancus,” which means a bench or a table, and “ruptus,” which means broken..
  • Bankruptcy and Fraud

    When a person files with the intent to commit fraud, he may conceal his assets in order to prevent them from being divided or may commit another act of fraudulent conveyance.
  • Individual Bankruptcy

    Bankruptcy relieves debts that people have been unable to pay themselves. .
  • Causes of Bankruptcy

    Most people who file for bankruptcy are usually in debt over their heads...