Bankruptcy 101

Once again, I am a Paralegal not an Attorney. So this is not intent ended to be or taken as legal advice. This is legal information only. Also let’s not forget that when a lawyer or a paralegal becomes involved your problem or concern becomes an ISSUE .
Okay after a young pundit on the Cavuto show 1/16/2014 who probably never had to look for a job. Said and I quote said, “The unemployment gravy train is now over.” I think I need to take a step back and go deeper into what crazy republicans feel only bad, lazy no accounts use. That is until they need it.
I am sorry, but I have got to wonder were someone who has always had some kind of ‘Daddy’s’ help gets off saying something like that.
First let’s talk a little Bankruptcy History. It was the Torrey Bill of 1898 which later became to be known as The Bankruptcy Act of 1898 which 1st allowed a private citizen to file for bankruptcy help. Not that you could get it just that you can file. It was the Bankruptcy Act of 1938 that opened the door for our current bankruptcy rights. Until than all bankruptcy laws strongly protected and favored corporations and the very wealthy.
Until then your creditor would be allowed to without warning or notification enter your home or small business seize anything they considered to have enough monetary value. They then could market the property and keep whatever they made. A lot of valued heirlooms were sold for pennies and people still went to jail for debt.
Congress had a moment of weakness during the Great Depression. Congress seemed to release that locking up debtors would cost more money than it recovers. Unfortunately too many rich corporate creditors decided that too many debtors using these bankruptcy laws where ‘escaping’ paying than money owed. So claiming they were preventing dead beat Dads from getting out of paying back child support they made a lot of other debts like student loans impossible to discharge under bankruptcy in 1978.
You know, with some of the things I’ve learned on the net, The Rachel Maddow and Ed show. I have got to wonder if some crazy republican is thinking about suggesting Debt slavery.
Debt Slavery to but it simply means you have to work for the corporation that pays off your debt. You will work for that corporation however long it takes that corporation to recoup the money you owe plus the money the corporation spent on you for the food you eat, the cloths the put you in and the cot you sleep on.
As a debt slave your owner gets to say how much you labor is worth. So you could find yourself working 16 plus hour days for 23 cents an hour. Let’s not forget they will be keeping the records so your owner will tell when or if you your debt has been paid off.
Next week, I’ll start getting into 3 major types of bankruptcies. Chapter 7, Chapter 13 and SCRA.