What are the three main purposes of the federal Bankruptcy Code? How are these purposes supported and fostered in the Code?

Answer 1

The primary goals of the Bankruptcy Code are: (1) To preserve as much of the debtor's property as possible. The Code requires full disclosure of the debtor's assets, liabilities, income, and expenses. Also, under the Code the trustee has the power to set aside voidable preferences and fraudulent transfers. (2) To divide the debtor's assets fairly between the debtor and creditors. The bankruptcy forum is a place where all creditors can be gathered and where everyone plays by the same regulations. The Code attempts to balance the creditor's desire to be paid with the debtor's right to get on in life with a fresh start. 3) To divide the debtor's assets fairly among creditors. Creditors will all be treated fairly, according to established rules.