Embrace News

New Bankruptcy Laws

National Debt Relief Program

The passage of the tough new bankruptcy laws in 2005 was supposed to benefit consumers in the form of reducing losses to lenders by making it harder to file bankruptcy. But two new reports released this week show that the new laws not only cost consumers more in terms of credit card debt, but may actually be encouraging greater losses to banks due to increased foreclosures.

According to new research, after the 2005 bankruptcy reform went into effect, both personal bankruptcy filings and credit card company losses sharply declined.

At the same time, while upfront annual fees on credit cards have been all but eliminated, fees have been climbing and becoming less transparent over the years, and there is no evidence that the new bankruptcy laws reversed this trend…over-limit fees and late fees have been climbing since well before bankruptcy reform, and that this trend continued after the 2005 bankruptcy reform.

Industry consolidation in the credit card market enabled the top card issuers to avoid losses from “price wars” by reducing rates to attract new customers.

The credit card industry might also be able to avoid price competition because of complex, multi-tiered pricing that can make it difficult for customers to comparison shop. These fees and interest rates—complex in their own right—are presented in a form that is difficult to understand. Customers faced with such complex pricing of the new bankruptcy laws systematically miscalculate and underestimate the cost of credit card debt.

National Debt Relief Initiative

]]>

A 2006 report from the Government Accountability Office (GAO) that found not only that bank fees and penalties are continuing to rise for card holders, but that credit card disclosures and explanations of fees are deliberately written in manners that make them hard to understand. The GAO also recommended in a separate report that credit card issuers use existing technology to customize card disclosures to individual cardholders, particularly those with high balances or frequent late payments.

The fact that after the new bankruptcy laws went into effect, interest rates and fees continued to rise and grace periods continued to fall, even though credit card companies reaped tremendous gains from declining bankruptcy losses demonstrates that the credit card market is not price-competitive. This lack of price competition explains why the benefits of the new bankruptcy laws accrued exclusively to credit card lenders and were not shared with the average American family, and why…bankruptcy reform was a failure.

Another effect of the new bankruptcy laws is the increase in foreclosures and defaults by mortgage holders who can’t afford to make payments on their homes. The more stringent bankruptcy code, by restricting financial relief available under the bankruptcy code and by increased the costs of filing bankruptcy, appears to have increased the number of individuals walking away from their homes, their mortgages, and their other financial obligations without seeking the protection of the bankruptcy court.

Under the new law, most individual filers would not qualify for Chapter 7 bankruptcy, which allows for the liquidation and erasure of most debt. Instead, they would be forced to file under Chapter 13, which requires regular payments of at least some of their debt to creditors.

The more stringent requirements of the new bankruptcy laws may be causing homeowners to “walk away” and let their homes go into foreclosure rather than attempt to file for bankruptcy. The restrictions on bankruptcy filings and subsequent increase in foreclosures puts downward price pressures on neighborhoods where many homes are in default or foreclosed upon.

One of the great lessons and ironies associated with the new bankruptcy laws is that the new law, by increasing the dollar value of assets susceptible to default, has weakened many of the financial companies that sought the more stringent bankruptcy code.

More Bankruptcy Law Articles

Bankruptcy Laws New York USA

 

Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.

Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Congress passed the Bankruptcy Code under its Constitutional grant of authority to
“establish… uniform laws on the subject of Bankruptcy throughout the United States.” See U.S. Constitution Article I, Section 8. States may not regulate bankruptcy though they may pass laws that govern other aspects of the debtor-creditor relationship. See Debtor-Creditor. A number of sections of Title 11 incorporate the debtor-creditor law of the individual states.

Bankruptcy proceedings are supervised by and litigated in the United States Bankruptcy Courts. These courts are a part of the District Courts of The United States. The United States Trustees were established by Congress to handle many
of the supervisory and administrative duties of bankruptcy proceedings. Proceedings in bankruptcy courts are governed by the Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress.
There are two basic types of Bankruptcy proceedings. A filing under Chapter 7 is called liquidation. It is the most common type of bankruptcy proceeding. Liquidation
involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors. Bankruptcy proceedings under Chapters 11, 12, and 13 involve the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors. Under Chapter 7, 12, 13, and some 11 proceedings, a trustee is appointed to supervise the assets of the debtor. A bankruptcy proceeding can either be entered into voluntarily by a debtor or initiated by creditors. After a bankruptcy proceeding is filed, creditors, for the most part, may not seek to collect their debts outside of the proceeding. The debtor is not allowed to transfer property that has been declared part of the estate subject to proceedings. Furthermore, certain pre-proceeding transfers of property, secured interests, and liens may be delayed or invalidated. Various provisions of the Bankruptcy Code also
establish the priority of creditors’ interests.

]]>

However, a recent decision by the Supreme Court has shifted this power towards the debtor. In Rousey v. Jacoway, (April 4th, 2005), the Court held that assets in Individual Retirement Accounts (IRA’s) are protected under 11 U.S.C § 522(d) and thus exempt from withdrawal from the bankruptcy estate. This decision has broad
implications for the baby-boomer generation, providing millions of Americans nearing retirement with increased protection of their earnings.

Recent passage of the Bankruptcy Prevention and Consumer Protection Act in April 2005 has also resulted in major reforms in bankrupcy law, outlining revised guidelines governing the dismissal or conversion of Chapter 7 liquidations to Chapter 11 or 13 proceedings. The law also expands the responsibilities of the United States
Trustees Program to include supervision of random and targeted audits, certification of entities to provide credit counseling that individuals must receive before filing for bankruptcy, certification of entities that provide financial education to individuals before being discharged from debt, and greater oversight of small business Chapter 11 reorganization cases.

Find More Bankruptcy Law Articles

Texas Bankruptcy Laws and Attorney: A Relief for the Debtors

Bankruptcy is a situation that is not an area specific, but everyone belonging to any part of the world can be into this kind of situation. Bankruptcy is a term used to denote a situation when you become so weak economically and financially that you don’t even have finance to pay your major bills and debts.

Sometimes financial pressures increase to such a limit that you have to sell your property and assets.  There are three major types of bankruptcy, chapter 7, chapter 11 and chapter 13. If you are also an individual or institution, facing the bankruptcy problem, then the best solution for you is to understand the bankruptcy laws.  Every state or area has its own specific bankruptcy laws and rules to deal with bankruptcy.  Texas is one of the largest states of United States, so Texas has its own set of laws for bankruptcy, which are precisely known as Texas bankruptcy laws. One of the great facts about the bankruptcy laws in Texas is that it allows the debtor to exempt unlimited value of the various homestead properties.

In the recent last years, many new acts have been added in these laws for the bankrupts before you apply for bankruptcy and one of them is credit counseling law. Texas bankruptcy laws have incorporated this new bankruptcy act for the convenience of both the debtors and creditors. According to this law, you would have to attend a court approved credit counseling agency session for at least 6 months before you can receive a certificate that will allow you to apply for a bankruptcy hearing.

After you get a certification, to begin the process of bankruptcy, next step for you is to contact and hire a Texas bankruptcy attorney. Even, if you have a thorough knowledge of bankruptcy, even then it is very important to hire an attorney to defend yourself in bankruptcy court.

For hiring Texas bankruptcy attorney, you should carry out research thoroughly, because a large number of attorneys have specialized in bankruptcy. You should ensure before hiring that the attorney is expert and specialized or not. You should ask him or her questions that can make it clear that he or she is the right one to be hired. Moreover apart from ensuring that he or she has the basic know how of the different clauses of the law in your favor, you should also ensure that the attorney is economical to hire. You should also look for his or her history and make sure that how many cases has been won and how many have been lost, so that you are crystal clear about the abilities, achievements and competence level of the attorney. A good Texas bankruptcy attorney would guide you about the whole bankruptcy process, would educate you about the laws for bankruptcy in Texas, and moreover would guide you that which of the bankruptcy would be best for you. So if you are living in Texas and apply for bankruptcy, make sure that you have a full grip on the Texas bankruptcy laws and next you should ensure that the hired attorney is the perfect for your case.

Business Laws Unveiled

Each and every person in this world must have at least once thought about opening some sort of business to increase his or her income. No matter if you are thinking about opening a small family business or a larger company, you cannot do anything but obey the business laws! If you don’t, you and your business can get into serious trouble!

In case you are under the impression that you need to be a graduate of a business law college or have a business law major in order to understand and use some of the basic ideas of small business law and corporate business law, you are making a very big mistake. Perhaps you have heard form the news and the headlines that employment law for business is one of the most dangerous fields, as a person can easily break the business laws and regulations.

]]>

The least any business man should know is that he or she must meet the general international business laws. You must also consider the export laws, import laws and but, by all means, one must obey to the specific laws of the country in which your business is situated.

Should you own a company that operates in your home country, then you must get to understand the business laws there. If you cannot manage to get a business permit or license, you can find yourself in a great amount of trouble, as your business can get shut down. Not to speak about the inconveniences due to business and hefty fines and penalties!

If you thought that Internet and online businesses do not need to take these rules seriously, then you can have the unpleasant surprise of getting serious problems. Of course these types of business need to obey the business laws, but they are called Internet compliance laws. Therefore, should you be operating a website of any kind and do not care about all these rules and regulations, criminal prosecution and hefty fines are waiting for you right across the corner.

Well, if all these bad things have made you fear doing business of any kind, you must know that no one expects you to be able to navigate the complexities of any type of business law by yourself! The best option for you is asking for help from a qualified professional of a business law firm. This way you will never get into trouble of any kind!

Find More Business Law Articles

Federal Bankruptcy Laws Will Free You of Debt and you’re Worries

Chapter 13 bankruptcy laws help people repay a part or all of their debts across a period of time at lower interest rates. Federal bankruptcy allows an individual to file chapter 7 bankruptcies or chapter 13 bankruptcy. However, the difference between the two is that under chapter 7 bankruptcy a trustee is appointed to pay off all the debts to the creditors by liquidating most of the non-exempt assets of the client. Whereas under chapter 13 bankruptcy laws a trustee is appointed who is expected to make all the payments to the creditors after receiving payment from the client. Filing chapter 13 bankruptcy law enables a person to pay off a part of all of his debts but one can only qualify for the Federal bankruptcy law under chapter 13 only if one has a stable source of income.

Chapter 13 bankruptcy is not as easy as it looks from outside. It is very complicated and so a person filing chapter 13 bankruptcy law should be extremely careful about making the payments on time especially if its the first time that he is going to pay after filing for chapter 13 bankruptcy. There are a few things one should remember after filing chapter 13 bankruptcy.

Once chapter 13 bankruptcy is filed and a payment plan is chalked wherein at a specific rate of interest the debtor will repay the debt. A trustee appointed for the purpose will handle the part of paying off the debts to the creditors but prior to that the debtor himself should make sure that the payments to be made are done on time so that chances of default are minimized. Since you will be paying off the debt from your income it is very important to check whether the company you are working for is paying you on time. At times in spite of you making the payments on time, the trustee’s personal bankruptcy information records will show discrepancy in the amount to be paid to the creditors. Hence, it is very important to keep a check on your source of income so that there is no missed payment from your end. Any missed payment will get your case dismissed if you reach the confirmation hearing. So it is very important to make the payments on time.

]]>

30 days after you have filed for chapter 13 bankruptcy your first payment becomes due and in case you miss on the very first payment your case gets dismissed. So it is important to be on time as far as your bankruptcy payments are concerned not only in the first payment but also during the entire trial period when you will be observed by the bankruptcy trustee on your repayment capability and how punctual you are in your payments. Once the bankruptcy trustee is sure that you are responsible enough to implement chapter 13 bankruptcy laws diligently. Also, one should remember that till the time your company starts the payroll deduction you have to personally make the payments to your trustee.

Another personal bankruptcy information that one should keep in mind after filing chapter 13 bankruptcy is to ensure that your full name and court’s case number is written right on top of the file clearly so that the trustee does not miss out on it amongst the many files he has to oversee. You should also keep a check on whether the trustee has received your payment and paid back to the creditors. This can be done by logging in and seeing what is going on in your case.

Whether you entrust your case with a chapter 7 bankruptcy trustee or file chapter 13 bankruptcy laws, it is important that your payments reach the creditors otherwise the effort of filing bankruptcy will go futile. Make yourself aware on personal bankruptcy information and Federal bankruptcy laws so that you can free yourself of debt very soon by filing for bankruptcy.

Susanna Jackson is a regular writer on bankruptcyonly.com, a US based portal, which provides detailed information on and and other Federal bankruptcy related issues.

 

New Bankruptcy Laws – Why You Must Avoid Bankruptcy Now?

The New Bankruptcy Laws – Truth about the unconstitutional new BK law changes. On April 20, 2005, George Bush signed the new “Bankruptcy Abuse and Consumer Protection Act” into law.

Bankruptcy Abuse? Do you know anyone personally who has abused the Bankruptcy laws, and are consumers really protected? Or, should this new bankruptcy bill be called the “Abuse the Consumer and Protect the Fraudulent Banks Act”?

We’ll soon see…

In order to understand these unfair new bankruptcy laws, and to help you see that you must avoid bankruptcy, lets cover the original purpose of the BK laws.

According to U.S. Bankruptcy Courts, the primary purpose of the old bankruptcy Chapter 7, bankruptcy Chapter 11 and bankruptcy Chapter 13 laws were: 1) to give an honest debtor a “fresh start” in life by relieving the debtor of most debts, and 2) to repay banks and creditors in an orderly manner to the extent that the debtor has property available for payment.

Apparently the primary purpose of the new credit card bank BK laws is: 1) to repay banks and creditors in an orderly manner to the extent that the debtor has property available for payment.

However, with the new BK laws, giving an honest debtor a “fresh start” in life by relieving the debtor of most debts has been done away with.

The finance companies and credit card banks all blame the necessity of the bankruptcy changes on the .003% of abusers of the old bankruptcy laws.

Sponsors of the bill claim that most bankruptcy personal cases involve irresponsible spenders who have shopped or gambled their money away and now do not wish to pay their creditors so the new BK legislation, will eliminate “filing bankruptcy for convenience”.

]]>

There is NOTHING further from the truth then these claims alleged by the credit card banks and finance companies. And, as you dig deeper into these pages, you’ll see who’s really abusing who in America’s credit, finance and banking game.

They claim that bankruptcy costs the credit card banks billions of dollars each year and that those costs are passed on to customers in the form of higher interest rates.

That of course would be true if the credit card banks were actually lending any of their own money, or their customer’s deposited money. For more details, read our page a history of money and banking secrets that banks don’t want published.

And, by making bankruptcy filings harder for those with financial trouble, legislators say that more people will pay their bills, the credit card companies will save billions of dollars, and the resulting savings will be passed on to consumers in the form of lower interest rates.

We’ve never ever heard of a credit card company lowering interest rates voluntarily, and we know they never will.

New Bankruptcy Law Highlights

The key highlights of the credit card banks new bankruptcy laws are:

The new bankruptcy laws apply a means test for people filing bankruptcy. If a debtor has at least 0 per month left over after an IRS determined monthly expense plan, (can you picture that?) the debtor will be forced to file Chapter 13 and pay for five years.

Just imagine life after bankruptcy now.

They will not be able to file Chapter 7 of the Federal bankruptcy code, which would have eliminated all of their unsecured debt.

There are no provisions in the bankruptcy law for debt problems caused by job loss, illness or other traumatic events, despite studies that show that these are the cause of most bankruptcy cases.

Can you say Debt Slave?

With these new, credit card BK laws, attorneys are now responsible for the accuracy of paperwork filed by their clients. So in other words, your attorney must now search your dresser drawers for those hidden family heirlooms.

This will no doubt result in fewer bankruptcy attorneys, with the remaining ones raising their fees in order to cover this additional liability.

With the new bankruptcy laws most consumers are now completely unprotected from losing a job or having medical problems. They can no longer start over by filing for bankruptcy Chapter 7.

They will have less affordable help from capable BK attorneys due to the new bankruptcy law liability stipulation.

Giving an honest debtor a “fresh start” in life by relieving the debtor of most debts has been done away with completely thanks to the new bankruptcy laws.

However an amazing discovery has been made that you cannot miss learning about. Now that you must avoid bk as there is no PROTECTION for consumers provided by the new Bankruptcy Abuse and Consumer Protection Act if filing bankruptcy under the new bankruptcy laws.