In this dissertation, we focus on a certain chosen topic of bankruptcy, including the causes of being state of insolvency of the business, effects and formation, and some discussion regarding to the law that had implemented here in our country.
Bankruptcy is define as the state of completely lacking in a particular quality value. Being bankrupt is a very serious matter. A person must hand over their estate, including their home to their trustee. If they were unable or unwilling to pay, they may declare bankruptcy. You will be force to risk anything that you own on your business to dissolve all your debts and your losses in your company.
It’s the legal status for an individual or company unable to pay off outstanding debt. It is a status that can only be granted by a state or federal court. Bankruptcy will negatively affect your credit and future ability to use money. It may prevent or delay foreclosure on a home and repossession of a car. It can also stop wage garnishment and other legal actions of creditors attempting to collect debts.
We conducted several studies trough the use of books and Accounting journals referring to the causes and formation of this crisis. There many aspects that had been consider why a business leads into bankruptcy. Base from we had searched there are some companies that are voluntarily declaring that the business has been bankrupt for some reasons. One of the reasons why a business declares bankruptcy is the low demand of sale and revenue.
There are many factors why a certain business or company leads into bankruptcy. Some of the causes is that the expenses are higher than the capital of company. Capital is one of the most important concepts in banking. Capital is the amount of cash and othe...
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The legislation is a complex in part because those creditors fall into so many categories-secured creditors, unsecured creditors, government creditors, and so on-each with its own special rights and interests in the bankruptcy process.
The Bankruptcy Code can be found under Title 11 of the United States Code (U.S.C.); this code is then divided into chapters 1, 3, and 5 which provide provisions concerning bankruptcy case and debtors. These chapters are then applied to six specific types of bankruptcy relief classified as Chapters 7, 9, 11, 12, 13, and 15. For businesses companies they mainly file for Chapters 7, 11, 12, and 13. Even though bankruptcy is a federal law, state laws can apply its own ba...
3 Consult a bankruptcy attorney in your area. A bankruptcy attorney can help you determine whether chapter 7 is the best option for you, and can guide you through the entire process. Should you decide to file for Chapter 7 bankruptcy without a lawyer.
There are some advantages and disadvantages to filing for bankruptcy chapter 7. According to chapter 7 debt liquidation bankruptcy is good option for many people who are dire financial straits. When the debtor files for Bankruptcy there is an automatic stay and most creditors must have stop their collection efforts. Thus, the debtor can begin to rebuild his or her credit. Financially speaking the debtor will start over. It’s true that filing Bankruptcy running your credit from certain amount of years and may cause embarrassment for many people. Also there is 90 day presumptive period. Any debt incurred in that 90 days prior to filing Bankruptcy is presumptively fraudulent, any debt incurred with intention of filing Bankruptcy or without intention of repayment is presumed fraudulent.
It relates to any situation where a partner or principal owner of a retail company files for bankruptcy, which means the individual is unable to satisfy personal financial obligations.
Himmelstein, David U., M.D., et al. "Medical Bankruptcy in the United States, 2007: Results of a National Study." The American Journal of Medicine 122.8 (2009): 741. ProQuest. Web.1 Dec. 2013.
While Chapter 7 bankruptcy is often harder to obtain than a Chapter 13 bankruptcy, it is a powerful tool that can be used to wipe out most types of unsecured debt such as credit card debt, personal and business loans, medical debt, apartment leases, cellphone and utility bills, and auto repossession overage balances. Essentially, any type of debt that is not specially tied to property can be eliminated in Chapter 7 bankruptcy.
Bankruptcy, today, is a very common thing among companies and individuals alike. Sadly enough there were as many bankruptcy cases filed in federal courts, as there were all other cases. The American bankruptcy law allows people to avoid paying their debts, by offering the debtors a discharge, which eliminates all their legal responsibilities. However, bankruptcy is a controversial issue amongst religious members of the Jewish population, for one must question whether it is morally correct to avoid paying a dept by filing for bankruptcy. According to the torah, a debt is an obligation that must be fulfilled. Consequently, if a bankruptcy discharge is invoked, under the strictness of Jewish law, one is still required to pay back the money no matter how long it may take him. According to Bais Din the debtor must hand over his property, with a few exclusions, to the creditor, and if this does not cover what he owes the creditor, then every time the debtor acquires new assets, he pays the creditor until he no longer owes him anything.
Many feel that they don't really need it .At the same time others just don't want to control their expenditure. With this in mind it's no doubt that personal bankruptcies are at such an all ...
Chapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages. But at the same time they are very different. Without knowing these differences a person could lose many things from money to possessions.
When it comes to the personal bankruptcy process, there are a few differences between banks and credit unions. These differences are particularly important in regards to their access to your money to pay outstanding debt. In many cases, banks should not be feared. They typically won’t access money from your checking or savings accounts to accommodate debt payments. Credit Unions, on the other hand, should be dealt with cautiously. Credit Unions actually have the ability to collect on unpaid loans - more than the typical “bank.”
The difference between the sales volume and cost of sales is also considered a reason of an organization which falls to financial distress. The higher cost of the goods sold sends an organization to a point from where a position which is called “Financial distress” is very near (Wruck 1990).
Among the study’s findings were that the deciding factor of the predictor of bankruptcy should not be only a few ratios, as the measure of a company’s financial solvency may differ as the firm’s situations differ. The important question is to which ratios are to be used and of those ratios chosen, which ratios are given priority weight.
Debt could include credit cards, mortgages, car payments, or anything else owed to another party, usually a bank or lending company. People are normally able to continue, at the very least minimum payments on these debts. This allows them to maintain and enjoy these various luxuries, only to find that they need to work and pay for them at a later time. When these people loose their jobs, due to downsizing, or any number of other reasons, they find it impossible to maintain their unpaid for accessories in life with no income.
A person who is unable or unwilling to pay his or her debts may declare bankruptcy. The state of being solvent means that one has the ability to pay his or her debts. However, insolvency means that a person cannot pay his or her debts. In order to declare bankruptcy, a person must file a petition for bankruptcy in a bankruptcy court. A voluntary bankruptcy proceeding is started by the person who is declaring bankruptcy, whereas an involuntary bankruptcy proceeding is started by the creditors of the bankrupt person. A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court.