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Justice Scale

what is bankruptcy?

"A Fresh Start"


        "A Fresh Start"


Guaranteed by the U.S. Constitution


Article I, Section 8 of the U.S. Constitution grants all citizens the right to file Bankruptcy.  Upon ratification of the Constitution in 1789, Congress was given the power to create "uniform laws on the subject of Bankruptces". 

The Supreme Court of the United States has described Bankruptcy as "a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of  pre-existing debt".  It allows citizens to become re-established as hard-working members of society and fulfill the American Dream. 

The "automatic stay"

The cornerstone of bankruptcy is the "automatic stay".  In most cases, upon the filing of a bankruptcy case, this "stay" order immediately goes into effect.  It immediately stops and prohibits collection actions, harassing phone calls, lawsuits, and property seizures against the debtor.  A creditor who willfully violates this stay order can be punished by contempt and the debtor may be awarded damages.

Discharge of debts

The primary goal of bankruptcy is the "discharge" or legal elimination of debt.  Upon the conclusion of the bankruptcy case, most unsecured debts are discharged.  Additionally, and balances resulting from property that the debtor no longer wants are also discharged.  

chapter 7


  • Quick

  • Discharge of Most Unsecured Debt

  • Continued Payments on Secured Debts (of your choice)

  • Liquidation (most property protected)

  • Must Qualify

chapter 13


  • Debt Repayment Plan

  • Do not need to be current on car notes or house notes to keep property

  • Reduce Car Payments

  • 0% interest and minimum repayments on unsecured debt

  • Flexible

  • Discharge of Most Unsecured Debt upon Conclusion of case



  • Chapter 7 Business Bankruptcy

  • Chapter 11 Reorganization

Learn Why bankruptcy can save you thousands vs. debt settlement

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