There is no doubt that the existence of the Chapter 7 Bankruptcy Law has done a lot of good even to those who have not used it. It has done this in two ways.
Chapter 7 Bankruptcy Law
In the first place, nobody knows when he starts out whether he is going to make mistakes or not. By making it possible to start over again after they do make them, the law has increased the chance that many people will succeed where otherwise they would have failed.
Second, where a man is merely unfortunate and makes no mistake, the chance that his creditors will let him alone rather than force him into bankruptcy may be much greater than we ordinarily suppose. Suppose I am a farmer who gets bad weather or crop-destroying insects and so earns less than I can pay my debts with. If all my creditors foreclose on me at once, what are my chances? Not very good; for if I had enough money to pay them all, why should I have fallen into debt?
But if there are laws by which some of my creditors can seize my farm and others can wait for their money until next year or next harvest, I may have a fighting chance; for then each creditor will prefer a share in what I can produce rather than getting nothing at all.”
In the last quarter of the 20th century, a new form of bankruptcy emerged. Chapter 7 bankruptcy law was invented in 1978 by the Bankruptcy Reform Act. It was intended to be a fresh start for consumers who found themselves unable to pay their debts.
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It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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— Ascent Law (@AscentLaw) July 21, 2022