Cleaveland & Cleaveland PL — Divorce Lawyer in Jacksonville

Purpose of Bankruptcy: Over one and one-half million families file consumer bankruptcy cases each year. Excessive interest rates on credit cards and car loans, as well as lenders financing mortgages that they know the consumer will likely not be able to afford, has created a downward spiral for many hard working families in America. Bankruptcy was enacted by Congress to give people a fresh start in life. Enabling people to file bankruptcy helps avoid discouragement that would prevent a person from becoming reestablished as a hard-working member of society, striving to find the good life and fulfill the American Dream. The Supreme Court of the United States has described bankruptcy as 'a new opportunity in life, unhampered by the pressure and discouragement of pre-existing debt.' Bankruptcy helps stimulate a capitalist economy by offering a form of a safety net for those who may have not fared well in the free-market. Types of Bankruptcy: The two most common forms of bankruptcy that are used by individuals are referred to by the chapters in the U.S. Code. They are referred to as chapter 7 and chapter 13 bankruptcy.