Question

Part 8. What are the goals of the Bankruptcy Act? What specific types of relief are available through bankruptcy?

Answer 1

Answer -

The goals of the bankruptcy act are to prevent the creditors from the losses occurred due to the insolvency of the debtors .Many rules have been laid down to prevent the insolvency and bad debts so that the creditors do not have to face losses .

The main benefits are -

1 - The Debtor must treat all creditors equally and he cannot be forced or coerced in any way by any creditor to repay his debts first.

2 - The debtor is to given the chance to be heard by the creditor for his late payment and must be given an honest chance to repay the debt without any use of power.