July 12th, 2009 at 02:53am
Under Discrimination Law
Bankruptcy law provides for a plan that allows a debtor who is unable to pay his creditors to resolve his debts through the division of his assets among his creditors. This also allows the interest of all creditors to be treated with equality. Certain bankruptcy laws allow a debtor to continue his business and use the revenue generated to pay off the debts. An additional aim of bankruptcy law is to allow certain debtors to liberate themselves of the financial obligations they have accumulated after the division of their assets. Bankruptcy law includes comprehensive access to civil litigation, credit, consumer law and commercial transactions.
Bankruptcy cases are either voluntary or involuntary. Voluntary bankruptcy cases involve debtors petitioning the bankruptcy courts. In involuntary bankruptcy, creditors rather than the debtors file the petition. Voluntary bankruptcy cases are majority whereas involuntary cases are rare except occasionally in business settings to force a company into bankruptcy so that creditors can enforce their rights.
Bankruptcy law prohibits some filers with higher income from using chapter 7. To file for chapter 7 current monthly incomes against median income is measured. If it is less than or equal to median income, chapter 7 can be filed. If it is more, the ‘means’ test must be passed to file for chapter 7 which is the requirement of the new bankruptcy law.
The purpose of the ‘means’ test is to find out certain allowed expenses and debt payments are subtracted from the current monthly income. f the balance is below a certain amount chapter 7 can be filed. Bankruptcy law can be broadly classified as follows:
Co-operative bankruptcy is filing of chapter 7 or chapter 11 by co-operations and partnerships in which the trustee appointed by the court sells the assets and distributes the proceeds to the creditors. The trustee’s commission, priority debts and debts to unsecured creditors are paid on a pro rata basis.
In chapter 7, the debtor’s business operations cease once the case is filed. On the other hand in chapter 11 the business typically remains in operation and the debtor is given the same right as a trustee.
Personal bankruptcy is commenced by an individual filing chapter 7, 11, 12or 13. The debtor is allowed to exempt certain property (household furniture, jewellery, clothing, pensions, insurance policies and other assets) from liquidation by the trustee. Exemptions vary from State to State. The automatic stay takes effect immediately upon the filing, which prohibits collecting money, or taking property from the debtors. It usually remains in effect through out the case.
In chapter 7 bankruptcies, the debtor files a petition with the court with detailed financial information about his assets, debts and income. These papers are executed under penalty of perjury, the duration being three to four months. Chapter 11 bankruptcies are a reorganization procedure used by business partnership and co-operations. In this case, the debtor will act on his own as a trustee and is called a debtor ‘in possession.’
As a general proposition, bankruptcy laws state that older income taxes (more than three years old) can be wiped out in bankruptcy, but not the new incomes taxes. Prior to filing bankruptcy, the debtor should have his own particular tax situation assessed. As a general rule, debtors filing bankruptcy continue to complete their own returns and pay their own post-bankruptcy taxes.
By Law Article
July 11th, 2009 at 08:53am
Under Bankruptcy Law
Bankruptcy is provided by Federal Law and all the cases related to bankruptcy are handled in Federal Court. Basically it is a legally declared by the court in which any individual or the organization is unable to pay their debts, expenses, bills to their creditors. Those who are bankrupt can file bankruptcy in a way to stop their creditor to collect debt from them. Chapter 7: Liquidation Bankruptcy & the changes under the new lawIt would be very harder for some people to file bankruptcy now. Especially with higher income level category they are now no longer allowed to use chapter 7. They need to pay partial amount of their debt under chapter 13. Before filing a bankruptcy case all the debtors have to undergo for the credit counseling, budgeting and the debt management. This law imposes on the lawyers too so it is very difficult to find an attorney to represent the bankruptcy case. Following are the changes in the Bankruptcy Law – • Under the old law many filers can choose the type of bankruptcy. Most of them were choosing Liquidation (Chapter 7 – Bankruptcy) over Repayment (Chapter 13 – Bankruptcy) because they proved beneficial for most of them. But under the new law, it would not be the case for the higher income group filers, the new law has prohibited from using chapter 7 bankruptcy for them. • Now the question arises about how you will define your income is high for filing under the bankruptcy. Under the new rules, the first step is to figure out your monthly income against the median income for a household for your size in your state to file in the chapter 7 bankruptcies. If it is less than that then you can file under chapter 7 and if it is not then you have to pass the means test. Another clause or the law in order to file for chapter 7. • The means test is to be done to calculate your disposable income and to see whether you have enough disposable income after deducting your expenses, debts, payments under chapter 13. If your income is high up to a certain limit after deducting your expenses, debts and all then you are not eligible for chapter 7 and if it is less than the certain amount then you can file under chapter 7 bankruptcy. • Now the next step is the counseling from the approved agencies by the United States Trustee’s Office about the credit & debt counseling. Purpose behind this counseling is to see and give an idea about your need to file for bankruptcy. Counseling is required even if it’s a repayment plan or for the debts that you are facing and you do not want to pay. If the agency come up with a repayment plan the agency proposes and you agree on that propose then you can submit it to the court along with the papers that you have completed the counseling process. Towards the end of your bankruptcy case, you will have to attend the last counseling session to learn about the personal financial management. After submitting the proof to the court you fulfilled this requirement. These are the new changes in the bankruptcy law. There are other changes that can affect bankruptcy filers negatively. In short, debtors are at more risk of having their property taken and sold by the trustee or the authenticated person.
By Law Article
July 11th, 2009 at 02:53am
Under Bankruptcy Law
Bankruptcy law is a federal statutory law contained in title 11 of the United States codes. Congress passed the Bankruptcy Code under its Constitutional grant of the authority to establish a uniform law on the subject of bankruptcy throughout United States. States may not regulate bankruptcy though they may pass the laws that govern other aspects of the debtor-creditor relationship.
Bankruptcy allows a debtor, who is unable to pay his creditors to resolve his debts through the division of his assets among his creditors. Certain bankruptcy proceedings allow a debtor to stay in business and use the revenue generated to resolve his or her debts. A United States Bankruptcy court supervises bankruptcy proceedings and is where bankruptcy is litigated. Proceedings in bankruptcy courts are governed by the Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress.
How Do Bankruptcy Proceedings Work?
Informally called “straight bankruptcy,” The most common type of bankruptcy proceedings liquidation involves the appointment of a trustee who collects the non-exempts property of the debtor, sells it and distributes the proceeds to the creditors.
Chapter 11 is reorganization. In this chapter the debtors are allowed to continue its operations while paying their debts. The debtor can either enter the bankruptcy proceedings or it can be initiated by the creditors. The creditors may not seek to collect their debts outside the proceedings at the most part, after the bankruptcy proceedings is filed. The latest revisions of the bankruptcy law are now in effect. Before the debtor can file a bankruptcy case, they should undergo credit counseling, budgeting and debt managements before the debt is wiped out.
Bankruptcy Attorney – Choosing the Right One
Bankruptcy attorneys explain the applications of bankruptcy laws and its applications. If the debtors or their lawyers set off the bankruptcy it is called a voluntary bankruptcy. If the courts initiate the bankruptcy it is called an involuntary bankruptcy. A good bankruptcy attorney will take all the problems away from the bankrupt person or company and deal with every aspect of the bankruptcy.
6 Helpful Tips and Considerations For Finding the Best Bankruptcy Attorney
1. Find a bankruptcy lawyer at the circle of your acquaintances. Keep in mind that bankruptcy law is a specialty, so if your lawyer offers to handle the case as part of your usual retainer, make sure he knows his way around a bankruptcy court.
2. Attorneys must be certified by the American Bankruptcy Institute.
3. Spend a day at a bankruptcy court.
4. What time frame do you have for this bankruptcy?
5. How much access will I have to an attorney during my bankruptcy filing?
6. Because bankruptcy law is a volume business, the time you’ll actually be working with a specific attorney may be small. Don’t hire the cheapest lawyer.
By Law Article
July 10th, 2009 at 08:52pm
Under Bankruptcy Law
If you are considering bankruptcy, you need to be aware of the recent drastic changes in the bankruptcy laws. It used to be that a person could file bankruptcy almost on a whim, simply to get out from under a huge burden of financial obligations. Then that person would start over, and a couple years later file bankruptcy again. This type of scenario is no longer possible for the most part due to the new bankruptcy law.
The bankruptcy laws still vary from state to state but much of the common foundation within the bankruptcy law is still there in all states. The variations and changes that are state specific are, for the most part, fairly minor points. In addition, one of the effects of the new laws are that if you are going to file bankruptcy, you must do it in the state in which you are a resident, and you cannot go to another state to file bankruptcy just because they may have more lenient laws in some areas.
With the new bankruptcy laws, the person who is considering filing must go through a process known as a means test. The means test can be very complex and the results of that test could mean the difference between filing bankruptcy and even not be allowed to file bankruptcy.
What this means to you is that the court looks at your financial situation with a very fine tooth comb. The court can determine that you do not need to file bankruptcy based on your level of income and that you can indeed pay your financial obligations, which still being able to maintain your reasonable and necessary living expenses. This is where things really get sticky, because while a consumer may consider “reasonable and necessary” to be that beach front condo in Miami, it is highly unlikely that the court would agree with your definition of “reasonable and necessary”.
Another change in the bankruptcy laws is that the consumer who plans to file bankruptcy is now required in almost all states to attend credit counseling sessions. To a certain extent, this does not make sense since the underlying reason that a consumer may be considering bankruptcy would not be financial mismanagement, but could be host of other financial difficulties, like a job layoff, extensive medical debts, an ugly divorce case, and other things that are totally unrelated to financial mismanagement, and in fact, the consumer may be the sharpest person in the world in terms of finances. But that person still needs to attend the credit counseling sessions, this is mandatory.
Because of the many changes in the bankruptcy law, consumers who may have wanted to file under Chapter 7 bankruptcy may now need to file under Chapter 13 or even Chapter 11 bankruptcy. Much of this determines how much of your personal assets can be retained, or perhaps sold out to satisfy your debtors.
One thing that has become clear with the new bankruptcy laws is that bankruptcy is no longer a “do it yourself” process. One mistake in filling out the mountain of forms can cause your bankruptcy application to be dismissed. You should work with a good bankruptcy lawyer who understands the bankruptcy law and also the variations in your state so that you can file correctly with the least amount of personal damage.
For more insights and additional information about <a href="
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By Law Article
July 10th, 2009 at 08:53am
Under Bankruptcy Law
It is better to realize as early as possible that going through a bankruptcy claim is not easy. People generally opt for it as their first remedy. You must know the bankruptcy laws well in order to decide.
The bankruptcy law has been crafted in a way to promote provisions that are a part of filling bankruptcy claims. It contains systematized laws that help the debtor to rid himself of any financial obligations that he has to undergo. The Chapter 7 bankruptcy law is in other words called straight bankruptcy. This law deals with the liquidation process. According to this, the one who is filing for bankruptcy has to surrender all his assets except those that are unaccredited or exempted to the lawyer or the trustee in bankruptcy.
The court must appoint a trustee in bankruptcy and he will be given charge of selling the assets or converting them into cash. Once the assets have been converted to cash the creditors are paid with these funds. Under the Chapter 7 bankruptcy law you are discharged from any obligation after a period of four months.
When can you apply the Chapter 7 bankruptcy law? It is applied when the debtor is left with no property to give up or lose. This is one of the most common bankruptcies that are filed in the United States by either individuals or business corporations. You could personally file bankruptcy by abiding with the Chapter 7 bankruptcy law or the court may impose it.
The Chapter 7 bankruptcy law will prompt a business man to sell all his assets and pay what he owes the creditors and finally close down his business. The procedures are very similar for individuals who have been forced to file under the Chapter 7 bankruptcy law, the only difference here is the individual will have no business to close down.
The advantages of filing a claim under the Chapter 7 bankruptcy law first and foremost are that any amount of debt may be cleared and as soon as you get out of the trouble you are in, you get a clean chit. The other advantage is that there is no particular amount of debt to qualify you for filing under the Chapter 7 bankruptcy law. As there is a protection that is granted by this law, the creditors cannot exert any authority over you. It is processed very quickly and you can be discharged from any debts in a short period, say in about four to six months.
The disadvantage of the Chapter 7 bankruptcy law is that you have to give up your whole property. Debts like taxes, child support, housing mortgages, studentsâ loans and car loans are not discharged under the Chapter 7 bankruptcy law. Along with you the co-signers will also be pulled in and asked to pay for your home loan. This law may be only availed once in every six years.
It becomes difficult to avail other loans because your credit rating gets damaged. Once you have filed for the Chapter 7 bankruptcy law, it cannot be withdrawn.
Tread cautiously if you are considering filing under the provisions that are based on the Chapter 7 bankruptcy law. All you need is to be protected and not end up with added problems.
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