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Fundamental Policies of the Bankruptcy Code

FUNDAMENTALS OF BANKRUPTCY FOR LENDERS

FUNDAMENTAL POLICIES OF THE BANKRUPTCY CODE

  1. The U.S. Constitution empowers Congress to establish "uniform Laws on the subject of Bankruptcies throughout the United States."
  2. To provide the debtor with breathing space from the pressure of creditors (the automatic stay).
  3. To provide a "fresh start" for the honest debtor.
  4. To ensure equity among the parties.  The Bankruptcy Court is a court of equity and, within the framework of the law, will seek to do what is just.
  5. To prevent abuse of the Bankruptcy system by unscrupulous debtors.

For more information or to request a presentation regarding BAPCPA, please contact Spotts Fain attorneys, Robert H. Chappell, III (804) 697-2025 or Jennifer J. West (804) 697-2094.