Like many of the laws that currently govern New Yorkers and other Americans throughout the nation, bankruptcy laws are originally based on ideas from British governance. According to the Federal Judicial Center, the first bankruptcy laws and procedures established in this country were set in 1800 and allowed business people to be held accountable for their debts at the request of their creditors. It was not until reforms in 1841 that debtors could file for bankruptcy support themselves.
In the estate planning world, an asset protection plan is a plan that prepares an individual's wealth and assets in such a way that they should be protected from financial challenges once the individual passes on. Through organization, planning, and plenty of foresight, New York residents can also plan to protect their assets from the financial challenges that may arise during their lifetimes. To avoid asset forfeiture, some private individuals and businesses enlist the help of legal professionals to help preserve their assets during bankruptcy and other financial legal matters.
Prior posts on this New York bankruptcy law blog have discussed the struggles that many debtors experience when confronted with the decision of whether to file for consumer bankruptcy. Some fear that if they file for bankruptcy they will never be able to access credit again. Others worry that their credit scores will be so negatively impacted that their financial lives will never recover.
Not all debt is bad. In fact, many Garnerville residents responsibly carry debt in the form of home mortgages, car and student loans, and other lending tools that enable them to access what they need to live good, productive lives. When debt is managed and maintained, it is not always a crippling burden.