What is the National Bankruptcy Reform Act?

The National Bankruptcy Reform Act (“Bankruptcy Reform Act”) is an important piece of legislation that affects the way bankruptcy is handled in the state of Georgia. The Bankruptcy Reform Act is a federal law which was created to provide an orderly and equitable way to resolve debt and reorganize finances for both individuals and entities. It includes provisions to help people who have too much debt to pay, and to protect creditors from borrowers who are unable to pay their debts. The Bankruptcy Reform Act is divided into two chapters – Chapter 7 and Chapter 13. Chapter 7 is used for individuals who need to liquidate their assets in order to pay off their creditors. Under Chapter 7, the debtor may have their assets sold in order to pay off creditors. Chapter 13 is known as a debt restructuring plan and is intended for individuals who are able to make regular payments to their creditors. The Bankruptcy Reform Act also sets limits on how debtors can spend their money, enforces rules about how debt collectors can conduct business, and provides guidance on how creditors can recover debts in the state of Georgia. The Bankruptcy Reform Act is a comprehensive law that seeks to balance the interests of debtors and creditors in a fair and equitable manner.

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What is the National Bankruptcy Reform Act?

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