Does bankruptcy favour the debtor over the creditor?

US personal bankruptcy laws favor the debtor, but with definable limits. The overall purpose of personal bankruptcy is to give the debtor a fresh start. read more

US personal bankruptcy laws favor the debtor, but with definable limits. The overall purpose of personal bankruptcy is to give the debtor a fresh start. Bankruptcy provides this reboot by both discharging certain debts and protecting certain assets. read more

Its chief provision is a “means test” that will apply to filers choosing Chapter 7, which allows discharge of all unsecured debts, rather than Chapter 13, which requires a five-year debt repayment plan. A bankruptcy trustee or creditor will be allowed to petition the court to deny Chapter 7 if the filer has income higher than the median in his or her home state. read more