Chapter 13 Bankruptcy Concepts: Filing a Petition For Relief Under Title II, United States Code.

You may be surprised to learn that the words “bankrupt” or “bankruptcy” are never mentioned in the Bankruptcy Code, which refers to “Debtors” and “Creditors” as well as various other entities. Now consider this statement and its applicability to your financial situation:

“IF YOU OWE MORE THAN YOU OWN, AND YOU SPEND MORE THAN YOU MAKE, THEN YOU ARE INSOLVENT.”

A bankruptcy case is a proceeding in federal court that will attempt to rectify this imbalance: a United States Bankruptcy Judge will grant You – the Debtor – a “discharge” from all debts that can be discharged, hopefully restoring you to solvency, or some semblance thereof.

In this way, you will obtain a “fresh start”. Under the current law, a consumer debtor may obtain a discharge or fresh start every eight years. Therefore, if you have received a discharge in the past, you are not necessarily barred from seeking one now.

I have included brief summaries of the principal bankruptcy chapters. But be advised that an entire textbook can be written on this subject – and many have been. Therefore, these summaries should not be used to make definitive decisions on a course of action. Rather, they should prompt you to seek elaboration and advice from an attorney admitted to practice before the bankruptcy court in this division: YOU CANNOT LEARN BANKRUPTCY LAW FROM A WEBSITE.