Bankruptcy finds its origins in ancient text like Torah and Old Testament (Book of Deuteronomy, Chapter 15:1-2) and the Mosaic Law. As per the old story, all debts will be forgiven at the end of every seven years. The bankruptcy outlined by founding forefathers states the rights of individuals in courts. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group inform that even today, Chapter 7 bankruptcy discharge is given to debtors after the end of seven years only.
According to text available in the ancient text, a person who is relieved of debt should be provided a fresh start. This is because getting rid of debts without providing for their immediate future would result in them incurring new debts for surviving. This resulted in providing exemptions which help protect some amount of property so that they can start their life afresh. Understanding bankruptcy is not as simple as it appears. You should seek consultation with experienced bankruptcy lawyers at 888-297-6023 if you are contemplating bankruptcy.