What is the primary purpose of the laws of Bankruptcy?

Answer 1

The primary purpose of the laws of Bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has property available for payment.

Bankruptcy allows the debtor to resolve his debts through the division of his assets among his creditors. Additionally the declaration of bankruptcy allows debtors to be discharged of most of the financial obligations, after their assets are distributed, even if their debts have not been paid in full. During the pendency of a bankruptcy proceeding, the "Debtor" is protected from extra-Bankruptcy action by creditors by a legally imposed "stay."

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Answer 2

So businesses can go bankrupt, you get to pay their bills by higher prices and they just start another business with a clean slate!

That is how many slumlords operate. They buy apts that are about to be condemned, charge the max as usually tho poor have little as far as credit, pockets the money, never pays a bill until the bank or city takes the dilapidated houses!

What a racket!

Answer 3

Check out this website which has a detailed explanation of the laws of bankruptcy. This might answer your question. Good luck!

Answer 4

To restructure your debt so you can pay it off.