Fresh Start

Definition

A fundamental goal of bankruptcy law: to give honest debtors a clean financial slate free from crushing debt, allowing them to rebuild their lives. Courts often cite this principle when deciding how broadly or narrowly to apply bankruptcy rules that affect debtors' ability to keep post-bankruptcy assets.

Examples

• •Keathley argues the fresh start principle means post-petition injury proceeds should belong to him, not his creditors from old debts.

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