Bankruptcy Law: A Way Out for the Creditor

Bankruptcy Law: A Way Out for the Creditor An Introduction to the Bankruptcy Law Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. Bankruptcy Law: Types of Bankruptcy A law under which an individual or a consumer and There are six types bankruptcy under the Bankruptcy Code, located at businesses can eliminate or repay some of their debts Title 11 of the United States Code: under the protection of the Federal Bankruptcy Court. CНАРТER 13 Rehabilitation with payment CНАРТER 7 As of Dec 2012, 1,221,091 Bankruptcies have been filed in US. Basic liquidation for individuals and businesses plan for individual CНАPТER 9 Municipal bankruptcy How it Works СНАРТER 11 Rehabilitation or reorganization used primarily Operated by United States Bankruptcy Courts, sub units of for business debtors Federal District Court Systems. CHAPTER 15 CHAPTER 12 These Courts are supervised by Bankruptcy Judges appointed by Federal Judicial Committees for a 14 year term. Ancillary and other international Rehabilitation for family, farmers and fishermen cases History of Bankruptcy Law: Legal Remedies for Recovery of Debts In East Asia 1542 Statute of Bankrupts 1898 Nelson Act (early Acts on Ancient Greece Bankruptcy is documented in East Asia: the 1705 Debt Slavery: Creditors recouped losses via physical labor. Yassa of Genghis Khan documented made death penalty Bankruptcy + Bankruptcy Act of 1898) laid the foundation of modern concept of Bankrupts Act of 1705 mandatory for any person who became bankrupt for three times. debtor-creator relations Ancient World England Torah/0ld Testament Medieval Period United States 1813 Mossaic Law: Every 7th year is decreed by this law when release of all the debts owned by members of the community is Insolvent Debtors Act 1938 1825 Chandler Act Bankrupts (England) Act mandated. 1978 Jubilee Year: The 7th sabbatical 1849 Bankruptcy Reform Act year or 49th year when release of Bankruptcy Law Consolidation all debts is mandated for fellow 1984 1869 Bankruptcy Amendments and Judgeship Act community members and all debt slaves are also released. Bankruptcy Act 1994 Quran On December 3, 2013, the City of Detroit Bankruptcy Reform Act An insolvent person is given time to clear debt. Quoting from Quran'2nd chapter: "And if someone is in hardship, then let there be postponement until a time of ease. But if you give from your became the largest municipality in U.S. 2005 Bankruptcy Abuse Prevention history to seek bankruptcy protection under Chapter 9 bankruptcy for $18.5 billion and Consumer Protection Act right as charity, then it is better for you, if you only knew." What Causes Bankruptcy 22% 42% of all personal bankruptcies are a 15% result of medical expenses of Americans file for Bankruptcy due to extravagant credit card bills, large mortgages and large payments of expensive cars. of unemployed Americans file for bankruptcy. 8% 7% of Americans file for Bankruptcy for legal fees, child support and divorce alimony. of all personal bankruptcies are a result of medical expenses ///// 24 1.5% 1% of Americans file for of American students file for bankruptcy to consolidate a student loan, bankruptcy to reorganize debts in order to purchase a home. Medical Bills are the Biggest Cause of US Bankruptcy What Debts can/cannot be Erased in US Research predicts , nearly 2 million people will be affected by Bankruptcy resulting from unpaid medical bills- making health care the No. 1 cause of such filings. 78% of those who have filed have insurance Credit Card Debts Medical Bills Unsecured Loan 28.9% 26.4% 18.7% 15.8% 8% 2.3% Bankruptcies 2013 Age Range 18-24 25-34 35-44 45-54 55-64 65+ Child Support Spousal Support Most Tax Debt The Following People Never Heard of These Alternatives to Bankruptcy Few Instances: From Belly up to Fat Cat Bankruptcy Alternatives To avoid the negative impacts of personal bankruptcy, individuals in debt have a number of bankruptcy alternatives: Donald Trump: American Magnate, Socialite, Television Personality Host $2,900,000,000 Filed personal and business bankruptcy for multiple times 1991 and 2004 • Self Money Management Annual Salary of $60 million • Negotiate with Creditors Henry Ford: Larry King: Popular Talk Show Host Founder Ford Motor Company • Debt Consolidation $188,1000,000,000 $150,000,000 • Formal Proposal to Creditors Filed in 1909 Filed in 1978 for a bad business deal • Individual Voluntary Arrangement Died at an age of 83 in 1947 leaving net worth of $188,1 billion. Now worth an estimated $150 million This infographic was designed by infographics.cc for http://russacklaw.com Resource: http://www.giveforward.com/p/medical-bankruptcy/medical-bankruptcy-statistics http://www.cnbc.com/id/100840148 RUSSACK LAW http://www.uscourts.gov/Statistics/BankruptcyStatistics.aspx http://en.wikipedia.org/wiki/Bankruptcy_alternatives http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States YOUR BANKRUPTCY & DEBT RELIEF ATTORNEYS http://topics.bloomberg.com/u.s.-bankruptcy-court/ http://en.wikipedia.org/wiki/History_of_bankruptcy_law http://finance.yahoo.com/news/pf_article_109143.html