The original bankruptcy law was enacted in 1878. Unlike European countries, American debtors were not punished in any way. Our founders saw bankruptcy from a different perspective; so they included a provision in the U.S. Constitution, which gives Congress the power to establish uniform bankruptcy laws. The main purpose of the Bankruptcy Code is to provide debtors with the opportunity to make a “fresh start”. In order to make a fresh start, the debtor is freed from any legal responsibility regarding his past debts. Under the code, debtors are protected against abusive activities by creditors. Once a voluntary or involuntary petition is filed, certain creditor actions are stayed under an automatic stay. Secured and unsecured creditors are suspended from any action against the debtor or his property. However, actions to recover child support or alimony are not stayed. In a situation where there are both secured and unsecured creditors, there is a particular interest in preventing creditors from gaining an unfair advantage over other creditors. Unsecured creditors must file a “proof of claim.” This document indicates the amount of the creditor's claim against the debtor. Secured creditors are not required to file a proof of claim unless the amount of the claim exceeds the value of the collateral. Voidable transfers are another form of intercreditor protection. Transfers or preferential liens made in favor of a creditor by the debtor within 90 days before bankruptcy may...