The thought of going bankrupt is generally something that most people don't consciously consider doing. However, the reality of today is that more and more people are not only considering bankruptcy; they are actively seeking it. Various forms of bankruptcy such as chapter 13 and chapter 11 are being exercised by people throughout the country today.



The U.S. bankruptcy laws were put in place by Congress in order to provide uniformity to the code and statutes throughout the United States. The bankruptcy laws were actually put in place to protect people from doing further financial harm.

Currently there are four different sections or chapters to the bankruptcy statutes. For instance, you'll probably recognize such bankruptcy terminology as chapter 11... which is the section of bankruptcy code that can be found in chapter 11 of the statute.

With these various chapters of bankruptcy, are explanations of how the various laws are set up to deal with the filing procedures and how the debt is relieved or negotiated down. There are also provisions regulating the behavior of the creditors themselves as it pertains to contacting and collection attempts by the creditor.

Although the bankruptcy codes were provided for by the U.S. federal government, each state has the right to pass other laws that will work within the framework of the federal statutes on bankruptcy; otherwise the states don't have autonomous power to govern how the overall bankruptcy code functions.

Just like most any statute, the bankruptcy codes are dynamic and subject to change. This is why it is imperative that an individual seeks the counsel of a professional bankruptcy attorney.

Even though the individual states can't alter the basic intent of the federal bankruptcy laws, the do have the right to interpret how the claims should be filed and how they are acted upon by the individual states themselves.

If there is a change to the core bankruptcy laws of the country, it will come from the congress of the United States. For instance, one such change that effected the rules for the filing of chapter 7 bankruptcy. The change to this particular section of the bankruptcy code adds some burden of proof on the part of the filer that they do indeed have met the criteria for the right to file such bankruptcy.

In such a case, the debtor will only be allowed to file if they have fulfilled a financial and bankruptcy counseling session. The intent of such an addendum to the statutes is to help ensure that the bankruptcy relief statutes are not being taken advantage of by individuals who just don't want to pay their debt.