Some people fear bankruptcy. Bankruptcy is a life-changing event. In times past, those facing financial troubles were villified. Even today, some wonder if such a move could label them “criminal.” Is this the case?
By Craig Welch
Will Filing Bankruptcy make me a Criminal?
It has been long debate in resolving the ambiguity that filing bankruptcy will make anyone a criminal or not? For this, it is important to know what makes one bankrupt, what the law has to say about bankruptcy convictions and what actions should be taken to get rid of bankruptcy.
The law of bankruptcy is designed for the best interest of both creditors and debtors, minimizing the risk for loss of assets of debtors and making sure creditors will get their true amount back as soon as possible.
Bankruptcy is introduced as the system that is designed to discharge debt for all debtors that are unable pay their dues. In other words, where people or organization was bearing more debts than they can afford to pay they can file a bankruptcy case in law or federal courts of bankruptcy.
In this manner, the creditors lose the rights or performing any legal action against the debtors. The court will evaluate the debtor’s property, possessions and plans a structure so that the creditor would get compensations. The process is designed to allow borrowers to structure their debts effectively.
Criminal or Not?
It is considered a severe bankruptcy and federal crime if anyone who has filed for bankruptcy tries to hide assets, attempts to bribe a creditor and other false penalty claims.
Although filling a bankruptcy doesn’t make anyone criminal, by any court of laws. Instead, it is an effective way of getting legal stay order, preventing creditors from taking serious actions against debtors, preventing creditors from harming debtor’s both physically and monetary.
The bankruptcy is designed in very optimum to provide lenders with all their dues and borrowers can get rid of massive debts without losing any of their and possessions.
For the debtors to concentrate more and more towards clearing all dues, bankruptcy will help in ceasing all bills and calls from creditor or bill collectors, stopping all collection efforts by creditors. Your particular situation will reflect that bankruptcy is an effective solution for your financial issues, it depends on the type and amount of debts, and your asset that will be protecting you.
Appointing an expert bankruptcy attorney will help you to structure best bankruptcy plans allowing you in managing natural payment schedules. Filing bankruptcy will not make you a criminal, and rather it’s a legal way to find a way out of the financial crisis without losing assets and clearing all dues to the creditors as well.
Craig Welch is a Lawyer with Offices in Petaluma, California, USA. Mr. Welch specializes in bankruptcy cases. With 30 years experience in helping Business and Individual clients weather their financial difficulties, Mr. Welch offers a Free 30-Minute Phone consultation. To learn more about how he can help you, vitis Craig Welch Legal today.