The purpose of  bankruptcy is to provide a fresh start to honest debtors. As long as you did not lie on your credit applications or hide valuable property, the bankruptcy court will help you get a fresh start in life.

If you are planning to file bankruptcy, many people will give you the wrong idea.. Those people think that bankruptcy is some kind of punishment because you cannot pay your bills. That's completely wrong!

What the Supreme Court Says About Bankruptcy.

In 1934, in the famous case Local Loan v. Hunt, the Supreme Court said:

One of the primary purposes of the     Bankruptcy Act is to relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start afresh free from the obligations and responsibilities consequent upon business misfortunes....

This purpose of the act has been again and again emphasized ... as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . . a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.