Bankruptcy 101

Bankruptcy allows individuals and business entities who are unable or falling behind, to get a “fresh start.” Bankruptcy gives “the honest but unfortunate debtor . . . a new opportunity in life and a clear field for the future, unhampered by the pressure and discouragement of preexisting debt.” Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934).


The key to getting this fresh start is honesty–you need to lay out all your debts, assets, and income sources with your attorney. For the honest debtor bankruptcy is can provide a path to a new beginning, free from crushing debt.


For a great resource, covering most aspects of bankruptcy, visit the U.S. Courts’ Bankruptcy website. They have a great guide to help answer many of your questions.