Several times, and it seems that the issue of bankruptcy in the terrible complexity. In fact, the basic principles of bankruptcy rather simple, despite the federal bankruptcy in the U.S. has been extended. The main reason is the degree of complexity, because the effort of social engineering, the legislature wants to avoid possible cases. Complexity of the bankruptcy law gives lawyers ample time to try to interpret the law be best suited to their clients. The result is a large number of conflicts, and sometimes, and explanations in this law unless lawmakers. This leads to additional regulations, in which a process and so on. However, the basic principles of law is not as complex as they want. Here, let me discuss personal bankruptcy.

Failure is an old concept in English common law. If the person can not pay its debts, creditors and fired by the court, with all his possessions, and use those assets to meet its debts. If the resources are insufficient to meet the debts of the debtor by the bankruptcy court to determine the ability of the debtor to prison. It is a remedy is the maximum, article 1 of Article 8 of the Constitution S. Chen. Gives Congress the right to put in place. “With respect to standard bankruptcy in the United States.”

As popularity has declined in debtors prison, making the concept of the debtor a fresh start and was one of the main objectives of bankruptcy. ‘Important to remember that failure is the person at the time of discharge, the petitioner (formerly the debtor) new starting point. E ‘owned by the petitioner does not start again, the person no longer exists.

The failure is personally may indicate what is the impact of the home exemption bankruptcy proceedings. The bankruptcy law recognizes the validity of ‘exemption house. Exemption personal exemption, in an attempt to someone in the house, and protects certain quantity of shares in a single family property. State law that define the extent and impact of the house for the exemption. Even if the state law says a person may declare a house to $ 45000 and less than $ 45000 in equity-owned shares, as is the protection of property from the house ‘exemption. These key posts without regard to federal bankruptcy law.