As Thanksgiving approaches, I decided to let the letter “T” in my bankruptcy alphabet series stand for “Thanksgiving”. This does not mean being thankful that you need to file bankruptcy, but rather being thankful that we have laws that enable people to file bankruptcy and be protected.
Not all countries do.
THE U.S. CONSTITUTION AUTHORIZES BANKRUPTCY
Bankruptcy laws are authorized directly in our Constitution. Article I, Section 8 says Congress shall have the power to ” establish a uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States.”
Without a doubt, our bankruptcy laws have changed quite a bit in our country’s 230+ years but, at least in the so-called modern era, they enable those qualified to simply walk away from certain debts without further obligation such as in a Chapter 7 bankruptcy context, and others to reorganize their debts by repaying a percentage, such as in a Chapter 13 or Chapter 11 context.
Many countries have bankruptcy laws (see Wikipedia’s summary of foreign bankruptcy laws), but many do not. And, the ones that do are not always as “friendly” to those in need as the United States.
Bankruptcy Laws Try to Strike a Balance
As with most laws, bankruptcy law has changed over time to try to strike the proper balance between creditors’ rights to get paid with debtors’ need for a fresh start.
Also factored in is the need to society as a whole to promote entrepreneurs, business ventures, and keep individuals as productive members of society.
But overall our bankruptcy laws work here and we can all be thankful we have them, even if we never need to use them.
Discuss Your Options With A Bankruptcy Attorney
When the bankruptcy laws were created, so were bankruptcy attorneys.
Bankruptcy is not designed to be a “do it yourself” project.
Whether you are a debtor (someone who owes money) or a creditor (someone who is owed money), if you have a bankruptcy related issue, the earlier you consult with a bankruptcy attorney, the better off you will be.
Image Courtesy of Mark A C Photos
Others Writing about the letter “T”: