Fresh Start Law and Legal Definition
Fresh start in bankruptcy law is a procedure by which a debtor is relieved from personal liability on debts. This concept is embodied in Chapter 7 of the Bankruptcy Code. Debts of debtor are recognized through the confirmation and completion of a bankruptcy plan. By fresh start process debtor receives a release from personal liability on prepetition debts by court approved arrangements for their partial repayment. It is a favorable financial status obtained by the debtor and is an opportunity to start over without prejudice. However, this is subject to certain limitations.
