The Honest Debtor
Bankruptcy Law Protects the Honest Debtor
One of the primary purposes of the bankruptcy code is to provide a fresh start for debtors. The major qualification for that primary goal, however, is that bankruptcy law protects only the honest debtor. The honest debtor is one who unfortunately got into debt, which he simply cannot pay back, due to factors out of his control and not foreseen by him.
It is the honest debtor who has guided the development of bankruptcy law. The law wants honest debtors to be relieved of oppressive debt and be able to make a fresh start. Bankruptcy law also prevents the dishonest debtor from obtaining relief from his debts, and if a dishonest debtor is able to game the system by fraudulently avoiding paying his debts, the law provides for stiff penalties.
How Bankruptcy Provides for a Fresh Start
There are two primary aspects of a fresh start that are provided by the bankruptcy code. First, bankruptcy law allows the honest debtor to retain enough property, known as exemptions, to go on with his life. Second, bankruptcy law provides for a discharge of debts.
Property exemptions permit the honest debtor to keep the basics of life so that he will not be thrown out on to the street and become a public charge (i.e., dependent on the government). The honest debtor will keep certain equity in his home, his household goods such as furniture, cars under a certain value, and other necessities.
The honest debtor will also have his debts discharged. This means the debts will disappear and he will have no more obligation to pay. Thus, the coupling of having his debts discharged with being able to keep certain property puts the honest debtor into a situation where he truly can start fresh.
Salcido Law Firm Helps Honest Debtors
We are Utah bankruptcy lawyers and help hones debtors like you. We understand that you are in the situation you are in because of the many unforeseen events which occurred. We will help you get back on your feet with a Chapter 7 or Chapter 13 bankruptcy so call one of our bankruptcy attorneys today. 801.413.1753