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Heading toward bankruptcy is usually something that most people don't even consider having happen in their lifetime. But statistics today prove differently. The reality of bankruptcy today is that there are increasing numbers of people that are entering the bankruptcy system. The different chapters of bankruptcy (chapter 7, chapter 11, chapter 13) are becoming more and more prevalent today. The United States Congress originally put the U.S. bankruptcy laws into place in order to provide a more consistent approach for people considering bankruptcy no matter which state that they may have lived. The philosophy behind the bankruptcy laws is to offer people who are struggling with no hope a vehicle to stop continuing to due financial harm to themselves. 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. Each of the various bankruptcy chapters have their own unique set of rules, regulations, and statutes as they pertain to the filing procedures, how the debt is ultimately relieved, and how the creditors are affected and what their rights are in the procedure or chapter. Even though there are Federal bankruptcy statutes that each state must follow, each state can still pass its own laws concerning the execution of the bankruptcy proceedings. This as long as these local state laws still fit within the framework of the Federal. In other words, states have the power to establish law concerning bankruptcy but not complete autonomy in doing so. Keep in mind however, that even thought the states can't change or amend the basic intent of the core bankruptcy laws, they do have the latitude to interpret how the filings take place and how the laws should be applied. 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. Any type of change to the top level of the bankruptcy codes and statutes will have to come from the United States Congress. On such change has come down the pike as it pertains to the filing of a Chapter 7 bankruptcy. The change to the core statute to this chapter had to do with the burden of proof. Essentially, it added additional criteria (or burden of proof)upon the person filing in order for them to meet the criteria necessary to have the right to file for 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.
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