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United States Bankruptcy Code Article
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Seeing Daylight Through the Eyes of Bankruptcy Laws
from:Bankruptcy laws are very clear about when you can and cannot file bankruptcy. Because of so much misuse of the bankruptcy proceedings in the past, the laws were revised in 2007. In effect the new law made it more difficult to file a chapter 7 than in the past, but once qualified, you no longer have to lose absolutely everything. The law recognizes that people in a severe debt situation need to start with a clean and manageable slate. Losing your home and the car you use to drive to work can only make the situation worse.
As a result the bankruptcy laws now allow people to keep their home and primary cars in many situations. The personal bankruptcy laws are defined under chapter 7 or chapter 13 while businesses can file a chapter 11. The laws vary, of course, depending on which type of bankruptcy applies to your situation.
When you file a bankruptcy it is almost as if a magician performed magic. The credit calls will stop and any financial collection activities are suspended by law. The mortgage company stops threatening foreclosure on your house and the credit card collection companies stop contacting you almost immediately. Even if you do get something in the mail or a phone call, all you have to do is notify your attorney who will make sure the law is followed. You will experience almost immediate relief because now your bank account or other benefits you may be receiving are not under threat of unannounced seizure.
The new bankruptcy laws require that you go through credit counseling which can be done online if you prefer. For a small fee you go through a process which analyzes your current financial status and works through a budget plan that you can follow in order to recover from the bankruptcy as quickly as possible. You also want to learn all you can to avoid having this situation ever happen again.
Bankruptcy laws provide clear rules about which assets you must list and how to value those assets. The value in some cases is replacement value which is normally retail value. You must past a “Means Test” before you are allowed to file for bankruptcy. The “Means Test” determines your true financial status and whether you can pay any of your debt. It then indicates which chapter you qualify under for filing purposes if you meet the Means Test minimum standards.
Bankruptcy laws cover a number of situations. The laws define exempt property, eligible debts that can be included in the bankruptcy filings, payment of creditors, liquidation of assets and a number of other topics. Because of the many bankruptcy law interpretations that must be made throughout the process, it is recommended that you use an attorney if at all possible. The attorney will insure you meet the requirements of the law and that you also get the greatest relief permissible.
Filing bankruptcy is a serious business that should only be undertaken when there seems to be no other options. Though the new laws are tougher than the older laws, the fact is that they do not hinder legitimate consumers and businesses from getting the relief they need.
United States Bankruptcy Code News
Opinion analysis: When worlds collide, the IRS wins and bankrupts shudder
Monday’s decision in Hall v. United States is emblematic of the Court’s long-standing skepticism of the Bankruptcy Code as an important institution for mitigating the long-term costs of financial distress. As a jurisprudential matter, the case is a classic conflict of wholly separate worlds: the world of the IRS and the Internal Revenue Code on [...]
Read more...Notice of Proposed Settlement of Reddy Ice Holdings, Inc. Securities Class Action
DALLAS, April 27, 2012 /PRNewswire/ -- The following release was issued today by Kessler Topaz Meltzer & Check, LLP:IN THE UNITED STATES BANKRUPTCY COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISIONIn ...
Read more...General Maritime Successfully Completes Financial Restructuring and Emerges From Chapter 11
NEW YORK, May 17, 2012 /PRNewswire/ -- General Maritime Corporation ("General Maritime" or the "Company") (OTC BB: GMRRQ) today announced that it has successfully completed its financial restructuring and has emerged from Chapter 11 of the United States Bankruptcy Code. ...
Read more...Thursday round-up
Coverage of Monday’s decision in Hall v. United States continued yesterday. Writing for this blog, Ronald Mann argued that the case, in which the Court held that tax liability incurred from the post-petition sale of a family farm is not dischargeable under Chapter 12 of the Bankruptcy Code, is “emblematic of the Court’s long-standing skepticism of the [...]
Read more...Wednesday round-up
Coverage of Monday’s opinions and orders continued yesterday. At JURIST, Julia Zebley summarizes Monday’s decision in Hall v. United States, in which the Court held that the federal income tax liability resulting from petitioners’ post-petition farm sale is not incurred by the estate under Section 503(b) of the Bankruptcy Code and thus is neither collectible [...]
Read more...Luhrs Marine Group Announces The Commencement Of Proceedings Under Chapter 11 Of The Bankruptcy Code
ALACHUA, Fla., April 30, 2012 /PRNewswire/ -- Morgan Industries Corporation, the parent company of Hunter Marine Corporation and the Luhrs Marine Group family of boat manufacturing businesses, announced ...
Read more...USW Objects to Pinnacle Airline's Bankruptcy Financing, Citing Unfair Conditions Set by Delta Airlines
PITTSBURGH, May 10, 2012 /PRNewswire-USNewswire/ -- The United Steelworkers (USW) today said that the union has filed an objection in U.S. Bankruptcy Court for the Southern District of New York to Pinnacle Airlines, Inc.'s motion for approval Debtor in Possession (DIP) financing provided by Delta Airlines.
Read more...Hawker Beechcraft Files For Bankruptcy
Company Pulled The Trigger On The Long-Rumored Reorganization Late Thursday It's not like no one saw this coming, but its still a blow to the aviation manufacturing industry, not to mention the local economy in Wichita. Hawker Beechcraft has filed for reorganization under Chapter 11 of the U.S. Bankruptcy code.
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