Purpose of Bankruptcy

In the United States we do not put people in jail for non-payment of debts.  The purpose of bankruptcy is to give people and other entities, such as corporations and partnerships, a fresh start by relieving them of debts or allowing them to restructure their financial situation.

Under liquidation, the assets of the debtor are liquidated by the court and the proceeds are distributed to the creditors as payment in full for any and all debts.  The debtor is absolved of any further payment to his creditors and is given a financial fresh start.

Under reorganization, the debtor is allowed to keep his/her assets and a court approved payment plan for a reduced amount of debt and payment is enforced upon both creditor and debtor.  This gives the debtor a chance to work his/her way out of debt without harassment from creditors.

Purpose of Bankruptcy News
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• U.S. V. AYERS Leagle.com
NewsNet5.comU.S. v. AYERSLeagle.comNevertheless, NCFE sent many of the advances to providers on the verge of bankruptcy, sometimes even to providers in bankruptcy. U.S. v. FAULKENBERRYLeagle.comall 159 news articles raquo
• FFMLT 04FF10, BANK OF NEW YORK, V. SMITH Leagle.com
FFMLT 04 FF10, BANK OF NEW YORK, v. SMITHLeagle.comThe statute does not mention any tolling of the two year statute of limitations during any action other than during pending bankruptcy proceedings.
• Shirley Sherrod Helped Keep Us Out Of Bankruptcy, Farmeraposs Wife Says CBS ...
CBC.caShirley Sherrod Helped Keep Us Out of Bankruptcy, Farmer39s Wife SaysCBS NewsAs far as I know the farmer wasn39t mentioned by name could this be a false statement for the purpose of image repair too coincidental that that Sherrod39s 39victim39: She 39kept us out of bankruptcy a friend for life39Atlanta Journal Constitution blogall 5,765 news articles raquo
• Concordia Lutheranaposs Mission: AposSurvive, Thriveapos After Bankruptcy Ro...
Concordia Lutheran39s mission: 39Survive, thrive39 after bankruptcyRockford Register StarThe purpose of reorganization is that you survive and thrive. Concordia, 7424 N. Second St., finished off a 1.4 million expansion in 1998 that more than
• Getting What You Pay For: Times Square Bomb Crappy On Purpose Gothamist
GothamistGetting What You Pay For: Times Square Bomb Crappy On PurposeGothamistOsama stated long ago that his plan was not to beat us on the battlefield, or blow us up, his plan was to scare this country into bankruptcy. and more raquo