Essay on Bankruptcy

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.

Agency law is a relationship between a principal and in agent in which the agent is legally authorized to act on the behalf of the principal.

Chapter 7 bankruptcy is often referred to as the liquidation bankruptcy because your non-exempt assets are sold (liquidated) by a bankruptcy trustee, with the proceeds (money) being distributed among creditors in order of highest priority to lowest.

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

In the United States, if someone incurs more debt than they are able to recover from, for example a small business failure, then thy can file bankruptcy. According to this ancient code, “If any one owe a debt for a loan, and a storm prostrates the grain, or the harvest fail, or the grain does not grow for lack of water; in that year he need not give his creditor any grain, he washes his debt-tablet in water and pays no rent for this year.” , (King 2008). Basically, exceptional financial debt circumstances were considered forgivable just like in today’s

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

There are many reasons people find themselves in the situation of filing for bankruptcy. These include credit card debt, medical expenses, loss of job and divorce. If you determine that this may be the right course of action for you, you should consult with a Sacramento bankruptcy lawyer who has experience in the personal bankruptcy field. This is an important decision and the laws can be very complicated.

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.)

If the former resident files for protection under the bankruptcy laws; either with a Chapter 7 or Chapter 13 filing, the garnishment process stops. Often times, these debtors already have other bad credit, other creditors pursuing them, and possibly other garnishments already in place. Besides the possibility of quitting their job, filing for bankruptcy relief puts an immediate hold on our action, resulting in the waste of the spending of the filing fees. For this reason, we are extremely selective as to which former residents we recommend this action

From the begin, a great insolvency legal counselor ought to help you to figure out which section of liquidation to record and will offer sound reasons why. In the event that you don't know anything about the diverse sections, this is a fantastic motivation to start counseling a legal counselor. Numerous legal advisors will even offer a free conference where you can just case the exhortation and proceed onward to deal with the rest of the case yourself. Regularly, however, legal counselors will charge by visit or by action, for example, showing up at the courthouse or recording printed

We know declaring bankruptcy is not a decision you made lightly. These are tough economic times and we know that there are so many things that can get out of hand and out of control.

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

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

The first Indication of financial distress is when firm does not have enough liquid assets (short-term assets) to cover (pay for) current