So maybe you are educated on the topic of filing bankruptcy, but not sure what the bankruptcy law is. If this is the case, you will find the following information very helpful. The bankruptcy code is very important to be aware of, whether you think that you are heading towards filing bankruptcy yourself or not. Basically, the bankruptcy code provides for the development of a plan that allows a debtor to resolve his or her debts through the division of his assets among his creditors. The bankruptcy laws will change from one state to another, so if you need to file bankruptcy, you will need to be up to date on the laws of your state.
Chapter 7 bankruptcy is a legal process available to individuals or married couples who need help dealing with a large amount of debt. In a bankruptcy, you work with the court trustee, a person appointed by the court to administer your Bankruptcy, to pay off some of your debt and have the rest forgiven. As soon as you begin the process of filing chapter 7, you are granted an automatic stay, which stops creditors from harassing you and trying to repossess, foreclose or collect on the debt you owe. At the end of the bankruptcy process you will receive a bankruptcy discharge which effectively eliminates almost all unsecured debts. This will lift a huge monkey off your back allowing you to enjoy being debt free without all the threatening calls from creditors. This is what they mean as a “fresh start”.
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