Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 7 Bankruptcy?”
Though it’s unlikely we have many readers from Kazakhstan, there’s good news to report to those in the country who may be struggling under the burden of large debt: the country is considering drafting its first personal bankruptcy law.
Though Americans have long been used to the idea of filing bankruptcy to get out from under crushing debt obligations, this is something that is not available to people in every country. The Kazakhstan Minister of Finance announced just this past week that the government is considering adopting a personal bankruptcy law, something which it says will be crucial to modernizing the country’s economy.
The government says it is working closely with consultants from the World Bank to draft a law and is also studying how bankruptcies are conducted in other countries. The proposal is meant to go hand-in-hand with an effort to require all citizens of Kazakhstan to begin to file personal income declarations, telling the government how much money they earned throughout the year. The government says once it has a better of idea of how much people earn they will make it a priority to allow bankruptcies in some cases.
Corporate bankruptcies are allowed in Kazakhstan and have been since 1997. That legislation permitted companies to receive protection from courts so that they could reorganize and eventually restart. The same protection has never been extended to individuals, who are forced instead to suffer under sometimes staggering amounts of personal debt.
Though many developing countries lack personal bankruptcy laws, it may come as a surprise to hear that even countries in Europe like Romania and Hungary are still without means for individuals to receive debt relief. Though many of these places allow individuals to restructure debts, experts have pointed out that restructuring often only works for a short time and the individuals then finds themselves again struggling to pay debts that they simply cannot afford.
Though no one looks forward to filing for bankruptcy, in many ways the laws are good things for an economy. Personal bankruptcy laws allow individuals to take chances with new businesses or make potentially risky investments, something that in the long run benefits society. By creating a way for individuals to be released from these debts, societies become much more dynamic and creative, something Kazakhstan realizes and is now trying to create for itself.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.