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THE HISTORY OF BANKRUPTCY

Stressed Over Money
  • Bankruptcy
  • Clint W. Smith, P.C.
  • No Comments
  • September 9, 2013

THE HISTORY OF BANKRUPTCY

Bankruptcy relief is a natural outgrowth of a free market economy.  The American system allows people to buy and sell at agreed upon prices, to begin business ventures, which leads to the possibility that some may not succeed.  It also leads to the wide fluctuations in the economy, such as we have experienced recently.

As a natural result of this economy situation, many are having difficulties meeting their financial obligations.   Income may be lost due to layoffs, divorce, illness or injury, or a number of other causes.  Years ago, our founding fathers decided to give people in financial distress an option to go on with their lives.  Our country did away with Debtor’s prison, which in Old England, put people in jail for failure to pay their debts.  In the United States of America, we were given the right to file for bankruptcy protection to obtain relief, provided we meet the criteria allowed under the law.  If those criteria are satisfied, bankruptcy relief is granted, and federal courts have been set up under the United States Federal Court system to grant that relief.  These are Bankruptcy Courts, operating under the District Courts.  In Arizona, there is one federal district in which they hold court hearings, both in Phoenix and Tucson.  A federally appointed bankruptcy judge ultimately reaches a determination to grant the discharge to those who comply with the laws.

There are several kinds of bankruptcy. Some are known as Chapter 7, Chapter 11, and Chapter 13. But even before bankruptcy needs to be declared, there are several things you can do for debt relief.

Call our offices for your free initial consultation. We can help you decide what would be the best solution to your problem. Our phone number is (480) 807-9300

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