Filing Financial Bankruptcy: Choice, Right, and New Beginning

The new year always brings self evaluation to us all. You can spend hours developing resolutions about how you will make a new beginning, what choices you will make, and whether these decisions are right for you. Filing for bankruptcy protection is a lot like developing new year’s resolutions. Filing bankruptcy is a choice, a right, and a new beginning.

Filing Bankruptcy is a Legitimate Choice

No one but you can make the choice whether or not to file bankruptcy. If you decide you think you should file for bankruptcy protection, you might want to keep in mind you must be resolved to complete the process, and you must resolve that filing bankruptcy is a legitimate process before you can have a fair chance at a new beginning. Therefore, your first choice is to determine whether or not filing bankruptcy is a legitimate process for your financial circumstances.


English: Two New Year's Resolutions postcards

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You can resolve not to file, but the choice of not filing usually gets your further into debt. Not filing can invoke debt collection actions like lawsuits, garnishments, repossessions, foreclosures, and the like. Generally, you do not necessarily have to be completely bankrupt to file, but it is the preferred financial circumstance unless you are fixing to lose your assets through some legal means.    

In the cases you are not completely bankrupt, you can select to resolve your financial debt through debt settlement, debt management or consolidation. These tactics normally do not work if you are completely bankrupt. If you do not have current sustainable income plus cash reserves that will pay all your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years, then you are most likely completely bankrupt.

On the other hand, you can resolve to make the legitimate choice of filing for bankruptcy protection. The moment you file a bankruptcy, the automatic stay of the bankruptcy court is executed and prevents certain lawsuits, repossessions, garnishments, foreclosures, debt collections, and the like from further taking place. The automatic stay protects your assets until the bankruptcy court can fairly distribute them.

Filing Bankruptcy Protection is Your Right     

Bankruptcy laws have their basis in Constitutional law. Therefore, bankruptcy laws are primarily federal in nature, superseding state bankruptcy laws which are made to supplement the federal law.

Congress was given the power to legislate federal bankruptcy laws, and the laws have evolved through the years to protect both debtor and creditor when financial transactions have gone awry. Filing bankruptcy allows the honest debtor a chance to work their way out of a bad financial situation, or in some cases, to have a financial new beginning.

Filing Bankruptcy Can Provide You with a New Beginning

Congress has historically favored the idea that, economically, it makes good sense for debtors to be productive citizens in lieu of being imprisoned. Congress has historically passed bankruptcy laws that would give a debtor the chance to financially start over with enough assets to make a clean new start. That should mean a new beginning for any debtor filing bankruptcy.

If you resolve to exercise your Constitutional right to make the choice of filing for bankruptcy protection in order to make a financial new beginning, you will most likely need the help of a bankruptcy lawyer.







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