The U.S. Constitution
Did you know that your right to debt relief is enshrined in the U.S. Constitution? Our founding fathers understood that our ideals of freedom would be seriously compromised by allowing people to become slaves to debt because of unfortunate circumstances such as job loss or serious illness. No matter which state you live in, you are entitled to eliminate your debts, get your creditors off your back and start rebuilding your credit.
Article 1, Section 8, Clause 4 of the Constitution simply empowers Congress to enact uniform laws on bankruptcy that apply equally in every part of the country. In response, Congress enacted federal bankruptcy laws, which specify the procedures and qualifications applicable to bankruptcy. The basic bankruptcy framework is the same everywhere in the United States, although certain secondary rules, such as property exemptions, vary from state to state. When you file for bankruptcy, your petition will be reviewed by a federal District Court that specializes in the handling of bankruptcy cases. Since bankruptcy law is federal law, your bankruptcy debt discharge will apply to creditors located anywhere in the United States, no matter where in the country you live.
Bankruptcy has been evolving ever since the founding of the republic to better balance the rights of debtors and creditors. The most recent major adaptation is the current Bankruptcy Code, enacted in 1978. The Bankruptcy Code has been amended numerous times since 1978, and will likely to continue to evolve to meet changing needs. The most recent amendment of the Bankruptcy Code was the 2005 Bankruptcy Abuse and Prevention Act.
Enforcing Your Rights
Federal bankruptcy law guarantees you certain legal rights, provided that you meet the statutory qualifications. In particular, you enjoy the following statutory rights once your bankruptcy petition is accepted by the court:
An automatic stay that prevents your creditors from pursuing you during bankruptcy proceedings. An automatic stay is a court order that prevents your creditors from foreclosing, suing you, selling your property, garnishing your wages or even contacting you about your debt. Secured creditors, however, may take collection action during bankruptcy proceedings by seeking permission from the bankruptcy court. Certain other kinds of debt, such as child support obligations, are subject to exceptions.
A bankruptcy discharge legally exonerates you from all debt obligations included in the discharge order. This means that you will never have to worry about these debts again. A discharge covers all debts included in the bankruptcy but does not include certain debts, such as domestic support, that cannot be discharged under federal law. If your debt is secured by property, a discharge will not necessarily prevent your creditors from seizing the property to satisfy the debt. Nevertheless, you may be entitled to an exemption covering some of all of your equity, and you will not be personally liable if the proceeds of the sale of your property is not enough to cover your debt.
You are entitled to reaffirm a bankruptcy debt, meaning that you can agree with your creditor to exclude certain debts from the bankruptcy discharge and continue paying installments to save your property from liquidation.
Contact Nancy Neal Joyce Today to Learn More About Your Case
Since bankruptcy law is so complicated, securing the services of a knowledgeable attorney is crucial to obtaining the maximum benefit. Nancy Neal Joyce maintains an office in Livonia, Michigan that serves the entire Detroit metropolitan area. Call her office at (734) 427-7772 and you will be scheduled for a free initial consultation with her.
