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The United States Congress originally put the U.S. bankruptcy laws into place in order to provide a more consistent approach for people considering bankruptcy no matter which state that they may have lived. The philosophy behind the bankruptcy laws is to offer people who are struggling with no hope a vehicle to stop continuing to due financial harm to themselves. Within the bankruptcy chapters there are four sections or chapters that lay out the various rules, regulations, and qualifications of each type of chapter or statutes. You are probably familiar with the term Chapter 13 bankruptcy or Chapter 7 bankruptcy. These numbers simply refer to the section of the bankruptcy code that addresses the particular circumstance. Each of the various bankruptcy chapters have their own unique set of rules, regulations, and statutes as they pertain to the filing procedures, how the debt is ultimately relieved, and how the creditors are affected and what their rights are in the procedure or chapter. Although the bankruptcy codes were provided for by the U.S. federal government, each state has the right to pass other laws that will work within the framework of the federal statutes on bankruptcy; otherwise the states don't have autonomous power to govern how the overall bankruptcy code functions. Keep in mind however, that even thought the states can't change or amend the basic intent of the core bankruptcy laws, they do have the latitude to interpret how the filings take place and how the laws should be applied. If you've not considered the dynamic nature of statutes, you would be well advised to. Bankruptcy statutes (just like all statutes)are dynamic in nature. They can and do change at the local (and Federal level)based on the lawmakers either adding amendments to the current statutes or adding completely new sections to the chapters themselves. Because of this it would be a good idea for anyone considering taking the bankruptcy route to consult with the appropriate counsel. Any type of change to the top level of the bankruptcy codes and statutes will have to come from the United States Congress. On such change has come down the pike as it pertains to the filing of a Chapter 7 bankruptcy. The change to the core statute to this chapter had to do with the burden of proof. Essentially, it added additional criteria (or burden of proof)upon the person filing in order for them to meet the criteria necessary to have the right to file for bankruptcy. With this change, the person seeking relief from the bankruptcy courts will only be approved for filing once they have completed a court approved financial and bankruptcy session. With the ever growing number of people seeking relief from debt via the bankruptcy system, this amendment was added to help ensure that the person filing was truly in a financial dead end and not someone who had just incurred a great deal of debt with no intention of paying it off. Article Source: http://www.articlewheel.com
For more information on banruptcy codes, be sure to visit onwebnet.com where you'll find information on topics such as bankruptcy laws, chapter 7 bankruptcy, bankruptcy filing & more
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