Platinum Law Group: Benefits of Bankruptcy Featuring Platinum Law Group

TORONTO, CANADA, September 22, 2010 (Press-News.org) Platinum Law Group: Benefits of Bankruptcy Featuring Platinum Law Group

According to Platinum Law Group, bankruptcy is basically a state of a person or a firm unable to pay off the debts. In legal terms, bankruptcy refers to the settlement of liabilities of a person/organization, fully or in parts, who are in a state of not able to meet the incurred financial obligations. The purpose of such a settlement is to uniformly distribute the bankrupt's assets equitably among the creditors, and, to relieve the debtor from further liability, in most cases. Platinum Law Group has found that bankruptcy in the U.S. is governed by a federal law adopted in 1898 and amended many times, as by the Bankruptcy Reform Act of 1978 and recently in the spring of 2005.

The two purposes of bankruptcy are:

- To give creditors a fair share of the money that one can afford to pay back.
- To give the debtor, a fresh start by discharging his/her debts.

As one expects, bankruptcy has its drawbacks. But there are some limited advantages as well. Platinum Law Group points out that bankruptcy is more broad a term than finally putting an end to harassing debt collectors and creditors. Let us see few of the benefits that can be exploited out of a potential case of bankruptcy.

- First one is linked with the emotional and physical drain bankruptcy otherwise can cause on the bankrupt person. That is, there is complete relief from the harassment from creditors once a person has been declared bankrupt. Platinum Law Group sheds light on the general fact that creditors' telephone calls, debt collection and car repossessions ceases and mortgage foreclosures and other law suits end as soon as one files for bankruptcy.

- And once a court declares one a bankrupt, a third party takes reign of the administration and he/she will handle the decision making and repayment of all the debts. Platinum Law Group goes on to explain that such a move is actually freeing the bankrupt person concerned from further stress.

- Basically by a court declaring a person bankrupt, actually it is a statement to the creditors only to expect less money in the repayment deal.

- To an extent, that means less loss of money from the bankrupt's side than what had agreed upon in the individual voluntary agreement.

- All the overdue are written off once discharged. Once reached such a stage, the creditors cannot chase them.

- Platinum Law Group informs that bankruptcy restructures debts so that they are more manageable over time.

But there are certain debts that are not cleared by bankruptcy. That includes court fines, HECS debts, child support payments, debts incurred by fraud, student loans. Platinum Law Group adds that even after declaring one bankrupt, these dues need to be paid back in regular terms.

Requirements when applying for bankruptcy:

- He/she does not have enough financial backup to live on if all the monthly repayments that are required to make to the creditors are made.

- He/she is on social security or on a low income i.e. less than $43,000 gross.

- Does not have assets that could be traded to pay back the debt.

- He/she is ready to live with the restriction on access to credit for 7 years.

Platinum Law Group- We are a consumer rights law firm that specializes in violations of the Rosenthal Fair Debt Collection Practices Act. We offer credit card lawsuit defense for consumers that are being sued by their credit card company. We also perform tax resolution, and bankruptcy. For further information, please call us at (416)365-1563.