This personal bankruptcy story was posted on the internet in May of 2010 as a blog in a discussion on bankruptcy: “I have two friends who recently had their bankruptcies discharged. They have not experienced any negative effects. In fact, they both discussed how it was so awesome that they got to keep two Rolex watches; a TagHeur watch; a two carat anniversary band; a 3 carat wedding ring from Tiffany’s and everything else they own. My husband and I just finished paying off 45,000 in student loan and home equity loan following [a debt management] plan, but we had to sacrifice and do without. Sometimes, I am jealous because these two families eliminated all their debt without having to sacrifice anything. Thoughts?”
Every bankruptcy story is different. Bankruptcy laws were placed into use by the Constitution of the United States which gave Congress the power to initiate the laws. Many of our Founding Fathers had experience with debtor prisons from the Old and New Worlds. They experienced the unfair advantages the creditors held over the debtors first hand. Throughout history, many people who were sent to debtor’s prison remained there until the debts were paid by family or friends. Often, debtors were from poor families and their friends didn’t come to the rescue. Eventually, many died in their prison cells having spent years in bondage before doing so.
The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the elimination of insolvent entities but on the remodeling of the financial and organizational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of their business. The laws passed through the years to balance the older laws favoring creditors have basically been designed to help honest debtors get back on their feet to be productive citizens. The key word here is “honest.” Bankruptcy fraud is a crime. While difficult to generalize across jurisdictions, common criminal acts under bankruptcy statutes typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing or redistribution arrangements. Falsifications on bankruptcy forms often constitute perjury. The new bankruptcy laws which are more generous to honest debtors were never intended to allow deadbeats and criminals to have a loop hole in order to beat their debts.
Bankruptcy laws are primarily federal in nature, but states do pass bankruptcy laws in order to clarify the details of what the federal laws have not addressed. One such example is that of declaring what is exempt from bankruptcy liquidation and what is not. Each state allows certain exempt items, but not all states recognize the same exemption list. Most states will allow certain sentimental items like wedding bands and rings to remain in the possession of the debtors. The idea of bankruptcy protection is to allow honest debtors to make a fresh start, not to destroy personal memories or objects of marital commitment. If in our personal bankruptcy illustration the stories are true, the states the debtors filed in must have allowed the exemptions for the jewelry, but I seriously doubt the two debtors got away without sacrificing anything. If nothing else, they lost their credit rating for 7 to 10 years, and in our society, we all know how poor credit can hurt you.
There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, and you are considering bankruptcy as an option. If this is the case, you are going to need a bankruptcy lawyer to properly help you understand how the complex bankruptcy laws may apply in your situation. So, if you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan areas of Dayton and Springfield, Ohio, contact us today and we will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
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