Bankruptcy
Bankruptcy is a legal way in which a business is liquidated in an event where the business is unable to pay it's debts from its current assets. Hence bankruptcy makes it possible for businesses, individuals and couples that cannot pay up their debts be exempted from repaying part of the debt or all of the debt. There are rules, laws and procedures for filling bankruptcy, in the united states it is governed by the federal law, states are not allowed in legislating in this aspect of law.
However there are two parties involved in bankruptcy filling namely the debtor and creditor, the debtor is party who incurred the debt or the party that owes money to the creditor, while on the other hand the creditor
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Prevent foreclosure, it saves debtors homes from foreclosure.
Allows the debtor to make monthly payment based or his budget for the month. Hence chapter 13 is flexible because it allow individual to pay what they can afford.
Credit report is shown for seven years.
Payment term is extendable under chapter 13
It gives provision whereby interest rates on a particular loan can be reduced
Chapter 13 can be filled as soon as chapter 7 is fully discharged
It protects third parties (co-signers)
Disadvantages of chapter 13 bankruptcy
Chapter 13 bankruptcy will be displayed on your credit report for seven years
Legal fees could be expensive
Lending huge sum of money will not be easy because creditors is likely to question your credibility.
Who Can File for Chapter 13
Bankruptcy?
For a debtor to be able to file for chapter 13 bankruptcy he or she must meet up to chapter 13 bankruptcy. According to the chapter 13 bankruptcy code a debtor must meet the following requirement to be eligible.
You are not a business entity.
You are not barred by a prior bankruptcy.
A previous bankruptcy case was not dismissed within the last 180 days.
You debts are not too
In putting together a repayment plan under Chapter 13, a debtor must apply the means test to identify the amount of disposable income that will be available to repay creditors.
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.
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.
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
A company’s ultimate goal is to be profitable, maintain a loyal customer base, and remain in business for a long time. Unfortunately, there are unforeseen incidences that can alter a company’s present and future plans. The economy has a downfall, a company loses some major clients, or improper business practices to name a few, can result in a company venturing into bankruptcy. Bankruptcy exists as a court procedure where a judge and court appointee analyzes the assets and liabilities of individuals and businesses who cannot afford to pay their obligations (Debt.org, 2017). The judge and court appointee have the task of deciding whether these individuals or businesses will be legally exempt from settling their debts with their creditors. The laws that are accompanied with bankruptcy are; statutory law and administrative law.
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
A Chair for My Mother is about a young girl, her hardworking mother, and her grandmother who put the coins they have earned and saved into a jar. After a house fired burned their valuable possessions, they want to buy a new comfortable chair with the money they have gathered together. In a 1st grade classroom, I would read this book when talking about responsibility and working together to achieve a common goal. We will read this story to talk about character traits and create a cooperation chart. We will record each person listed in the book and report how they contributed in helping the family. In this book, I really loved description and image of the people in the neighborhood who helped the family after the fire burned down. It is a great
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.
There are many similarities to the process of having student loans discharged along with filing chapter 7 or chapter 13 bankruptcy, there are just a few differences in the filing method to use with each that will help you most.
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
Some people believe that bankruptcy is something that only a small number of people file for
The 1970’s the United States signaled a pivotal shift for a “ just deserts,” philosophy to model their criminal justice system. With increase punishment for individuals, thousands of prisons were built in order to cope with the rising number of inmates. With the adoption of a punishment oriented philosophy, “ the war on drugs,” emerged as the nation’s solution to deter drug use and drug related crimes. Changes in the criminal justice system produce policy spillover into other branches like prisons, police, and even drug enforcement ; the “ war on drugs,” and stop and frisk are examples of this policy spillover. The crack epidemic in the 1980’s ( approximately 10 years after the start of the “ war on drugs,”) only further prompted politicians
Financial distress is defined as a low cash flow state of a firm in which it incurs losses without being insolvent or financial distress is a term in Corporate Finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty. Financial distress is different from insolvency. Financially distressed companies have lower profitability, higher leverage, lower past excess returns and larger size compared to active companies.
Leadership development is defined as formal and informal training and professional development programs designed for all management and executive-level employees to assist in developing the required leadership skills and styles to deal with a variety of situations (Human Resources, 2011). A lack of effective leadership development programs usually comes from organizations thinking that senior managers need continuous training and development. However, great leadership development is essential to all employees and managers in an organization. Executive mangers are important to the success of any business but, building leadership skills on all levels can develop a culture of employees ready to take on leadership roles at any time. In my organization, we develop and hone leadership skills by focusing on team intelligence, managing up and down, succession planning, and performance problem solving.