Fear of financial devastation or ruin caused over 1.5 million Americans to file bankruptcy in 2010. (Chapter 13) Statistics provided by the U.S. Bankruptcy Courts show that financial hardship can strike anyone (U.S. Bankruptcy). According to The Nations Health magazine, medical bankruptcies comprised two thirds of all bankruptcies filed in 2007, meaning the debtor’s list of creditors included some sort of delinquent medical bills (Currie). Christine Dugas points out in USA Today that as the unemployment rate increases so will bankruptcy filings (Dugas). These statistics show that financial hardship and the need for the fresh start that bankruptcy can provide can strike anyone, therefore, understanding the differences in requirements, process, and outcome of the two different types of bankruptcies most commonly filed, Chapter 7 and Chapter 13, is vital for those choosing an option out of their financial trouble.
Although a debtor may be able to file either Chapter 7 or Chapter 13, the requirements vary enough that some debtors may only have one choice of filing. Title 11 of The United States Code describes two major items to consider in its regulation of the two bankruptcies, assets and disposable income (US Courts). In the case of individuals, assets are every tangible article or item a person possesses, such as, cars, homes, or personal property (Bankruptcy). Although having assets is possible when filing Chapter 7, the common rule is that a debtor should follow this avenue when they possess no other assets besides personal property with minimal value, everyday use vehicles, and/or a primary residence. On the other hand, Chapter 13 permits a debtor to possess and retain any assets their funds allow. In bankruptcy terms, di...
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...al position allows for a fresh start and future success. Analyzing the requirements, process, and outcome will ensure a sound choice is selected.
Works Cited
“Bankruptcy Glossary.” Find Law. Find Law, 2011. Web. 23 June 2011
“Chapter 13 vs. Chapter 7 Bankruptcy.” Find Law. Find Law, 2011. Web. 23 June 2011.
Currie, Donya. “Illness, medical bills linked to banktuptcy.” Nation in Brief. The Nation’s
Health, August 2009. Web. 22 June 2011.
Dugas, Christine. "Bankruptcy filings on the rise." USA Today. USA Today, 3 June 2009. Web.
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“U.S. Bankruptcy Courts––Bankruptcy Cases Commenced, Terminated and Pending.” Table.
United States. Courts. “Judicial Business of the United States Courts 2010 Annual Report of the Director.” United States Courts. US Courts. Web. 23 June 2011.
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Duggan, Daniel. “Champion Enterprises Inc. files Chapter 11 bankruptcy.” Crain’s Detroit Business, November 16, 2009.
Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended
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...
2 Find out if you qualify for bankruptcy. The qualification is based on your income and family size relative to the state you are filing in. This is done by filling out a federal form called "The Means Test". If you qualify, proceed to Step 3. If you DO NOT qualify, you're only option would be a Chapter 13 "debt consolidation".
There is a disease that is sweeping the U.S. at an alarming pace. It is called affluenza it is very contagious and growing at frightening rates. In 1997, an amazing 1.1 million debt plagued spenders filed for personal bankruptcy that was a 28.6% increase from '96. Economists predict another 1.6 million to file by the end of this fiscal year, (Shop 'til We Drop [STWD], 1997). These are two vivid examples of the amazing rate at which affluenza is growing. These numbers are occurring despite the strong economy and perhaps because of it. With the economy in the U.S. going so well credit card companies are issuing more credit. Consumers are then using their new found credit to buy without even thinking of how they will pay for the products. They get the credit cards because of the appealingly low 5.9% introductory rate and go for it, but the credit card companies usually run those rates up to 18% or more in the first six months before the consumer pays off the purchase, (Insight into the News IIN, 1997). This in turn leads consumers into over extending themselves. Although 96% of all consumers are using credit cards responsibly according to American Bankers Association '97, the typical person who files for bankruptcy takes home less than $20,000 a year and has more than $17,000 in credit charges and of that's not overextending oneself what is. It seems that debt and affluenza go hand in hand and that combination can't be good for relationships.
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.
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.
With Detroit filing for bankruptcy public policy came into play the bankruptcy court had to take action.
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.
The Detroit bankruptcy has been one of the most revolting situations. Declining the economies economic development, previously a highly industrialized economy. The city of Detroit has experienced a devastating fiscal collapse ranging from an avalanche of underlying factors which explains what could possibly cause this level of crisis.
Bankruptcy as a financial management is a legitimate proceeding involving a person or business that cant repay outstanding debts. The general meaning of bankruptcy is the point at which somebody has credit debt that they are making payments on and can no more make those installment because of occupation misfortune, market investment losses or any kind of income loss that prevents them to make their installments schedule. At the point when a person can no more make these payment they seek for a financial company that specializes in bankruptcy. This firm will attempt to negotiate a settlement with the credit company and if that does not work will file for bankruptcy. There are structures to fill out which include one’s income, tax returns and
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.”
Schaefer, S. (2013). Detroit files biggest municipal bankruptcy on record. Forbes Magazine, Retrieved from http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/detail? vid=2&sid=b6189574-03df-4c57-b7ad-a175dc56aebf@sessionmgr113&hid=102 &bdata=JnNpdGU9ZWRzLWxpdmU=
If you’re having financial difficulties and are contemplating bankruptcy proceedings, you’ll want to consult with a bankruptcy attorney. This type
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.