What Is The Purpose of Bankruptcy?
Generally, bankruptcy is a legal process where the debtor is discharged from all his/her debts and allowed to start anew with a fresh start.
The primary purpose of bankruptcy is to provide an honest debtor with a new opportunity. However, it also helps the creditors to receive repayment.
There are two types of bankruptcy cases, namely bankruptcy Chapter 7 and Chapter 12. Both of these are based on the same principle. In either case, the trustee is appointed to liquidate nonexempt property and disburse the proceeds to the creditors. Then, the debtor proposes a repayment plan to repay the debt. The court accepts the plan if the creditors approve it. The plan cannot exceed three years.
The bankruptcy law has evolved to help individuals and businesses overcome their financial troubles. It allows them to restructure their businesses and to continue operating. It also protects the going concern value of the firms in financial distress. It also provides a means of restructuring pre-existing debt.
In the United States, Bankruptcy Code is interpreted by the federal courts. The courts have been very clear in expressing their views about the purpose of bankruptcy. The courts have repeatedly stated that the purpose of the bankruptcy act is to help the honest debtor to a fresh start. In addition, it is meant to remove the discouragement that has been associated with the existence of pre-existing debt.
The bankruptcy law is also designed to prevent fraud. This is a function of the means test, which takes into account the unsecured debts and the assets of the debtor. If the debtor fails to meet the test, he/she can be dismissed from the case. Nevertheless, if the bankruptcy case is successful, it can serve as a stepping stone to future borrowing.
There are certain exemptions that allow the debtor to retain some of his/her basic necessities. These can be found in every state. In some cases, the amount of an exempt item may vary from state to state. These include real estate, automobiles, and jewelry.
There are many reasons why an individual or a business would file for bankruptcy. The most common is a failure to pay a debt. Others may be because of poor planning, or because of severe economic difficulties. In any case, bankruptcy can be a valuable tool in eliminating overwhelming financial obligations.
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
If you have any questions or in need a Bankruptcy Lawyer, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
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(801) 676-5506
https://www.ascentlawfirm.com
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West Point, Utah
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West Point, Utah
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West Point City Municipal Center
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Location in Davis County and the state of Utah
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| Coordinates: 41°7′17″N 112°5′18″WCoordinates: 41°7′17″N 112°5′18″W | |
| Country | United States |
| State | Utah |
| County | Davis |
| Settled | 1867 |
| Incorporated | 1935 |
| Government | |
| • Mayor | Erik Craythorne |
| • Planning Commission | John Detamore, Brad Lee, Rawlee Wilson, Matt Leavitt, Jake Shepherd, Max Livingston and Lowell Mielke |
| Area | |
| • Total | 7.14 sq mi (18.50 km2) |
| • Land | 7.11 sq mi (18.43 km2) |
| • Water | 0.03 sq mi (0.07 km2) |
| Elevation | 4,314 ft (1,315 m) |
| Population
(2010)
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| • Total | 9,511 |
| • Estimate
(2019)[2]
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10,957 |
| • Density | 1,540.20/sq mi (594.64/km2) |
| Time zone | UTC-7 (Mountain (MST)) |
| • Summer (DST) | UTC-6 (MDT) |
| ZIP code |
84015
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| Area code(s) | 385, 801 |
| FIPS code | 49-83390[3] |
| GNIS feature ID | 1434108[4] |
| Website | westpointcity |
West Point is a city in Davis County, Utah, United States. It is part of the Ogden–Clearfield, Utah Metropolitan Statistical Area. The population was 9,511 at the 2010 census,[5] up from 6,033 in 2000. The estimated population in 2019 was 10,957.[6] The city has experienced quick growth centered primarily around single-family residential construction.
West Point was first settled in March 1867.[7] The community was named after the United States Military Academy at West Point.[8] Before it was incorporated, the region was informally called “South Hooper” and “Muskrat Springs”.
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