Bankruptcy - Chapter 7 "A Fresh Start for an Honest Debtor"

Bankruptcy is an essential component of a capitalistic society. The alternative to a Bankruptcy Code is a Debtor’s Prison.  In 1833 our Country abolished federal imprisonment for unpaid debts. Further, without a Bankruptcy Code coupled with other federal laws our society would be dominated by a few holding all the wealth of our country, i.e. the winners of a giant monopoly game.
All of us run the risk of making financial mistakes or are subject to external forces - illness, divorce and/or surviving the existing recession, that resulted in an unmanageable financial crisis. There had to be a method to resolve these financial situations by allowing individuals a new beginning.  Congress established Chapter 7 of the Bankruptcy Code as one method to accomplish this goal.  The stated public policy of Chapter 7 is “a fresh start for an honest debtor”.  Further each state developed exemption laws, property that creditors could not seize to satisfy a debt.  Texas has always encouraged taking financial risks and as a counterbalance developed the most liberal exemption laws in the country.  The purpose of the exemption law is to allow people to keep enough property to kick off the concept of a fresh start.
To demonstrate the necessity for a Bankruptcy Code all one has to do is look at Greece.  Greece is in dire financial crisis with no real way to resolve their financial problems except by knuckling under the demands of the European Common Market Countries.  The situation for Greek citizens continues to go downhill.  Unemployment continues to rise, wages and pensions have been slashed as Greece implements the demands of its creditors and the demand of the Common Market.  There seems to be no way for this country to get any solid footing in order to recover because only through growth of its economy can any country recover. 
Chapter 7 allows an individual to be relieved of most of his/her existing debts as well as keep enough property to allow a person to have a fresh start with a reasonable degree of success.  Chapter 7 of the Bankruptcy Code is one element of our society that allowed the United States to become the envy of other nations in the world.