Bankruptcy In The United States

When you file bankruptcy, whether it be a Chapter 7 or Chapter 13 filing, the bankruptcy trustee plays a big role in the process. Once you and your bankruptcy attorney have filed a successful bankruptcy petition, the bankruptcy court assigns a bankruptcy trustee who will be charged with executing your estate. In a chapter 7 bankruptcy the trustee will sell your non-exempt property and use the proceeds to pay back your creditors. In a Chapter 13 bankruptcy case, you make one monthly payment to the trustee who then devise it up to your creditors according to the payment plan that the court approves. Anyone filing bankruptcy must be completely honest and forthcoming about their accounts, assets, money, and property. You cannot hide or get rid of money or property before or during a bankruptcy without getting it approved by the trustee and courts. A bankruptcy attorney will be able to explain this to you in greater detail and offer you advise on property that you do want to get rid of.

Many companies in the United States are struggling to survive. These companies are experiencing significant decreases in revenue, reduced assets, and increases in liabilities. Companies that already filed, or are at-risk for filing bankruptcy are struggling with keeping up with their competitors, causing the companies to lose their value. When a company files for bankruptcy, the company no longer gets to make the business decisions. The bankruptcy courts begin to make the decisions for the companies in efforts to restore the businesses. If the company is unable to revive itself from bankruptcy status, the company goes out of business. If this occurs, the company must sell everything it owns in order to compensate its shareholders and repay

Under the United States Constitution, any valid bankruptcy system must be federally enacted. Two separate provisions of Article I necessitate this conclusion. Article I, Section 10, Clause 1 of the Constitution prohibits any state from passing, “. . . any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, . . . .” No bankruptcy system can realistically exist without the ability to impair the obligations of contracts. The entire purpose of a bankruptcy proceeding is to allow a financially distressed debtor to discharge its debt obligations after paying off as much of its debt as possible. A large majority of a municipal debtor’s debt will come from some contractual obligation that the States are explicitly prohibited from impairing. Therefore, Article I, Section

Most people file for bankruptcy because they’re indebted to a person or corporation, like a bank for example. When you file for Chapter 7 bankruptcy, an impartial trustee is appointed to your case and handles the liquidation of

Bankruptcy is a legal process established under the United States Constitution and federal law that allows consumers and firms that are unable to pay their debts to eliminate, or discharge, these legal obligations to repay many types of consumer and business debts thereby receiving a financial “fresh start” for the future (Filing bankruptcy, 2016). The history of bankruptcy dates to ancient Rome and the term "bankruptcy" was coined pursuant to Roman law and commercial practices of the day (Fitzpatrick & DiLullo, 2012). The term originated as a result of ancient Roman merchants conducting their business affairs in a public forum on a prominently placed bench known as a “banca”; in the event these merchants were unable to pay their theirs, Roman

Many bankruptcy filers don’t have an extensive history of bad credit. A large portion actually went into the bankruptcy process with decent to good credit. Bankruptcy provides relief to out of control debt or financial situations that have no other solution. They come out with a discharge of their debt

Chapter Seven personal bankruptcy is many times known as "straight" or alternatively "liquidation" bankruptcy -- it cancels your current debt, but one may have to let the bankruptcy court liquidate some of an individual's possessions for the benefit of your debt collectors. ("Chapter 7" pertains to the section of the particular federal government Bankruptcy Code which has the bankruptcy legislations.)

Trustee asks questions to determine whether there is property available for sale in order to satisfy all or a portion of your debt. If your property is exempt, then the Trustee cannot sell any of your property. In a Chapter 13 Case, the Trustee asks questions to determine whether the monthly payment that you and your attorney have proposed is sufficient to pay each type of creditor the amount required under the Bankruptcy Code. Each type of creditor may be treated differently, and some creditors may not receive any money during the entire term of your Chapter 13 Case, depending upon your unique circumstances.

Chapter 7 Bankruptcy Basics: Known as the fresh start bankruptcy, the Chapter 7 bankruptcy can

Although bankruptcy laws are federal laws and applicable in every state, pawn shop laws will vary from state to state. In general a bankruptcy court will look to local laws to determine when a pawn loan is in default. Local laws will also set out the rules about what a borrower needs to do in order to keep his pawn loan out of default - usually this mean tendering an interest payment.

Chapter 7 bankruptcy requires individuals to sell off all of their assets and use the funds to pay back any debts and creditors. As a result, one of the many assets that people who file for chapter 7 bankruptcy immediately sell is their home. Homes that are sold by a chapter 7 bankruptcy owner tend to be priced a lot lower. This is due to the fact that the owner is looking to offload their possessions and pay off their debts as soon as possible. While these kinds of homes can be a good deal it is still important to use caution when going through with the purchase. There a few things you should consider before purchasing a home from a chapter 7 bankruptcy trustee.

If you have missed a few mortgage payments and are struggling to pay other debts, you may think you can catch up on these bills eventually. Unfortunately, this is usually not possible due to the accumulation of late fees and the constantly increasing minimum payments. Choosing to file bankruptcy is not an admission of failure, but

Over the years, the process of declaring bankruptcy has become incredibly simple. Because of this change, the number of people declaring bankruptcy is at an all time high. Today, bankruptcy is a common thing among companies and individuals alike. The American bankruptcy law allows people to avoid paying their debts by offering the debtors a discharge without a harsh consequence. By not having repercussions for their actions, bankruptcy filers often plan future bankruptcies, allowing them to steal even more money from creditors with no punishment. There are 13 different chapters in the bankruptcy system with the principal chapters being 7,11, and 13. You can only file for bankruptcy under these three chapters, the others are there to

Once you've reached the conclusion that you need to file for bankruptcy, your whole world may begin to unravel. A million questions and scenarios will run through your mind, all leading to a seemingly dismal financial future. Don't look at this like you're throwing yourself to the wolves with no control over what's going to happen, though, as you do still have a very crucial role in how things go. Although you don't want to rush into a bankruptcy filing, certain issues you're facing may mean filing sooner, rather than later, is in your best interest. Since many variables influence your decision, it's important to take them all under

When you are struggling to manage your finances, you might consider a variety of options. Sometimes, filing for bankruptcy is the best choice. If you are insolvent, you may be contemplating this strategy.