Bankruptcy Information Explained
Posted on August 16, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
Technically, the term bankruptcy comes from the old Italian banco rotta or busted bench - most likely a metaphor for flat broke though, for merchants unable to pay their debts in olden days, more than a few benches (or countertops) were destroyed alongside. The overall notion’s rather older and refers to the official distinction of debts that a court agrees could not reasonably expect to be repaid. As a matter of fact, the earliest legal definition of bankruptcy protection appeared in Roman statutes during Caesar’s reign. At the time, debtors could be legally tortured or even killed at the whim of creditors should funds continue to be owed. The Cessio Bonarum allowed debtors to trade the entirety of their possessions in exchange for their lives. Not quite today’s Chapter 7 program, but not all the far away either.
It wasn’t until the start of the eighteenth century that governments introduced the idea that debtors were not necessarily criminals. In 1705, under the reign of Queen Anne, the concept of discharged debts and honest merchants unable to meet their obligations for reasons beyond their control was first considered, and, though the laws have been greatly expanded in subsequent years (and ever so slightly rescinded the past two decades), that was when the bankruptcy most Americans only ever hope to know through game shows and board games was invented.
Of course, these days, bankruptcy - at least, the specific level of bankruptcy - is no longer left up to the individual debtor or creditor. Trustees assigned by the court take care of that part, deciding whether or not individuals could ever repay their borrowers, and fulfilling the definition of the ever shifting bankruptcy code. According to the statutes attached to the United States constitution, bankruptcy specifically denotes an inability to repay lenders as agreed by governmental Read more
Protecting Debtors From Failure to Hire - Promote Or Termination After Filing Bankruptcy
Posted on August 15, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
The stigma of filing bankruptcy has stopped many debtors who rightfully and probably necessarily need to file bankruptcy. The truth of the matter is that filing bankruptcy is a right granted to all Americans by Congress and as such, is a protected right. As a protected right, it is illegal to discriminate against debtors as employees pursuant to both Massachusetts law, MGL 151B, and Federal Law (Civil Rights Act and Bankruptcy Code).
More specifically, 11 U.S.C.A 525(b) provides, “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt”.
There has been several cases directly on-point with the forgoing. In one case, a Police department rule rendering a city policeman subject to dismissal for the filing of a petition in bankruptcy was unconstitutional under U.S.C.A.Const. Art. 6, cl. 2, since the rule, while intended to insure a reliable and respectable police force, had the effect of prohibiting a policeman burdened with staggering debts from obtaining “a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt”, an effect in direct contravention of the stated purpose of this title. Rutledge v. City of Shreveport, W.D.La.1975, 387 F.Supp. 1277.
Chapter 13 debtor, a former chief appraiser for a county tax appraisal district, was fired from her job in violation of the Bankruptcy Code’s anti discrimination provision where it was apparent from the totality of the circumstances that appraisal district’s board of directors determined that debtor would be discharged because they were embarrassed Read more
New Bankruptcy Laws - New Challenges
Posted on August 14, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
Most people have heard about the new bankruptcy laws. These new laws really changed a lot of things about filing bankruptcy. Making bankruptcy something that is more strict and less available.
The whole idea of the new bankruptcy laws was to limit bankruptcy filings and help to protect both the creditor and debtor. Filing bankruptcy is not an easy solution nor is it something that a person should do just because they do not want to repay debts. With that in mind the new bankruptcy laws changed the face of bankruptcy for everyone.
The new laws help to ensure people can not rush into filing bankruptcy. Now filing bankruptcy also includes getting educated which is aimed at helping to prevent filing again in the future. Additionally, some income groups are not able to file Chapter 7 bankruptcy anymore.
Thing to Consider About Filing
Filing bankruptcy is not an ending to financial problems. When you file bankruptcy due to severe financial problems then you will still have those problems even after you file. All bankruptcy can do is help you get debts under control. It will not solve your financial problems.
The new bankruptcy laws work hard to make sure that people understand this concept. By requiring counseling, when you file bankruptcy you will get help to learn how to get back on track financially and stay away form problems in the future.
Bankruptcy is hard on you and creditors. Your credit will suffer due to filing. Creditors lose money over bankruptcy. That is why new laws limit who can file Chapter 7 bankruptcies which wipe away debt and instead enforce filing of Chapter 11 where debts are repaid.
Income Limits
The new bankruptcy laws require a means test which will determine the income of the filer. If the income level is deemed high enough a person w Read more
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