About Debt Relief Through Bankruptcy
Contrary to popular opinion, bankruptcy is not a synonym for failure. Rather, it is a legitimate form of debt relief or restructuring that was mentioned in the United States Constitution with these words in Article 1, Section 8, clauses 1 and 4: “The Congress shall have Power…To establish…uniform Laws on the subject of Bankruptcies throughout the United States.” This provision of the Constitution laid the foundation for today’s federal bankruptcy laws that we know as the U.S. Bankruptcy Code.
Federal bankruptcy laws and individual states’ versions of them (such as C.R.S. § 13-54-107 in Colorado) have allowed many Americans to get a fresh start in spite of overwhelming debts.
Examples Of Debts That Overwhelm Many Debtors
Bankruptcy may offer the relief you need if you are facing unmanageable debts, including the following:
- Credit card debt, installment loans and car loans
- Debts triggered by natural disasters, violence or other catastrophes
- Unpaid medical or dental bills
- A mortgage or lease in trouble
- Business loans in default
- Personal loans from friends or family
- Lawsuit judgments against you that you lack the resources to pay
- Student loans
- Unpaid back taxes
- Unpaid child support
The last three in the list above (student loans, taxes and child support) cannot normally be wiped out through bankruptcy. However, restructuring of debts through bankruptcy enables many debtors to get caught up even in these areas. The other categories may be greatly reduced or eliminated through appropriate types of bankruptcy.
An American Story Of Grappling With Debt
Examples of well-known American individuals who have filed bankruptcy at least once have included Abraham Lincoln, Ulysses S. Grant, Thomas Jefferson, Mark Twain, Walt Disney, Henry Ford, Zsa Zsa Gabor and Nicolas Cage. This is but a sampling of a long list of public figures who have turned to bankruptcy when debts become unmanageable. Countless well-known businesses have also sought bankruptcy protection, and many recovered. If you pursue bankruptcy, you certainly will not be alone.
Is Bankruptcy Right For You?
Although bankruptcy can be a good option for some debtors, it is also not to be taken lightly. Someone whose debts are discharged through bankruptcy will have a mark on their credit record for about 10 years. Obtaining loans after a bankruptcy may be challenging, though certainly not impossible. There is no shame in discussing the possibility of filing bankruptcy with an experienced lawyer. The Law Center P.C offers free initial consultations. Call 303-991-5280 or send an email inquiry to request a meeting with a Colorado bankruptcy lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.