Now if you ask a very simple question, “what is bankruptcy actually?”; the answer is easy. There may be such a situation when you just cannot negotiate with the creditors, repossession of your property is imminent and of course the foreclosure process has begun. Now you are already in such a situation where your income is not at all sufficient to pay the bills irrespective of the amount of the loan. This is basically a perfect situation when you can declare yourself to be bankrupt. And just keep in mind that in such a situation, where the laws like Massachusetts Chapter 7 Bankruptcy can be of your immense help.
Now if you just try to delve a bit deep in the pages of history, you will find that previously there is no such law in the countries of Western Europe. The persons who were unable to pay the debts were generally sent to an infernal place called the debtors’ prison.
Say for example, you have a look in the pages of the novels of Charles Dickens; you will find that many destitute there were sent to the debtors’ prison. In the twentieth century, the situation has been changed altogether and the bankruptcy laws have come to the fore.
Now there is no doubt in the fact that now we are living in much more enlightened times. Now the query- How to bankruptcy is undoubtedly very needful. As we have said earlier that there are two existing laws in this sector, namely chapter 7 and chapter 13 bankruptcy.
But at the day’s end we can say with supreme emphasis that the laws are now with you to make you bold and straightforward.
This content has been taken from: http://www.zimbio.com/