Law Office of Christopher J. Martindale

A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial “fresh start” from burdensome debts. The Supreme Court made this point about the purpose of bankruptcy law in a 1934 decision: “It gives to the honest but unfortunate debtor a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” – Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934). This goal is accomplished through the bankruptcy discharge, which releases debtors from personal liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts. – Bankruptcy Judges Division, Administrative Office of the U.S. Courts

If you are suffering from a burden of debt that you cannot manage, you do not have to suffer. As stated above, the Federal Government has been granted the power by the U.S. Constitution to create Bankruptcy Law, and they have granted citizens the federally protected right to pursue debt relief through bankruptcy filing.  Most debts are dischargeable through bankruptcy.  Chapter 7 and Chapter 13 are the two major ways individuals can pursue bankruptcy debt relief.  Chapter 7 liquidates your assets, minus certain exemptions, and uses the proceeds to pay off your creditors.  However, most Chapter 7 filings are no asset cases: this means your debts are simply discharged without liquidating your assets.  Over 99% of Chapter 7 cases result in a discharge.  Chapter 13 relief creates a 3-5 year payment plan, depending on the individual’s income, that allows debtors to catch up on debt payments and keep important assets like a home.  Once you file for bankruptcy, creditors are generally not allowed to pursue collection activity against you: this means no phone calls, law suits, or garnishments.