Origins Of Bankruptcy Law In The United States

The United States Constitution gives Congress the power to establish laws on the subject of Bankruptcy throughout the United States. Congress first exercised this power the Bankruptcy Act of 1800. This act, which virtually copied the existing English law, provided for involuntary bankruptcies and was only available to traders (merchants). The act was repealed three years later in 1803. Two more short-lived federal bankruptcy laws were enacted from 1841 to 1843 and from 1867 to 1878. A permanent federal bankruptcy law would not go into Read More +

Bankruptcy In England

Bankruptcy law in England was once quite harsh. Bankruptcy was considered a crime and people who could not pay their debts were thrown into debtors’ prison or had their ears cut off. In fact, the first legislation dealing with bankruptcy in England was the Statute of the Bankrupts in 1542. One purpose of this law was to prevent people who owed money from escaping England. Only creditors could commence a bankruptcy proceeding. This law aided in the collection of debts and did not provide relief Read More +

Bankruptcy In The Ancient World

Bankruptcy is a concept that did not always exist. For instance, in Ancient Greece there were no bankruptcy laws. If a person was unable to pay his debts, the person, as well as his immediate family, would be forced into slavery until the debt was worked off. Like the Ancient Greeks, the first known laws of the Ancient Romans punished those who could not pay their debts harshly. If a person could not pay an acknowledged debt then that person could be cut into pieces, Read More +

Chapter 13 Case Permits Cramdown Of Mortgages

Debtors In Bankruptcy in Tampa Area May Pay Only The Actual Value Of Their Homestead In Bankruptcy Provided Their Mortgage Terminates Before Five Years The 11th Circuit of the United States Court Of Appeals Ruled in American General Finance versus Richard W Paschen that the plain language of the Bankruptcy Code allows Debtors in Chapter 13 Bankruptcy to pay only the Secured Value or Fair Market Value of their Residential Property through the Chapter 13 Plan. The Unsecured portion of the Mortgage, which is the Read More +

What Are The Trustee Duties In Bankruptcy? (part 3)

Part Three: Duties Of Trustee As Pertains To Personal Injury Lawsuits And Settlements What are the Bankruptcy Trustee’s Duties when there is an active Personal Injury Lawsuit during the pendency of a Bankruptcy? Bankruptcy Code Section 330, Section 326, Section 328, and 329, is one of the clearer and better written portions of the code, and it clearly spells out the duties of the Bankruptcy Trustee and the Personal Injury Attorney, who is representing the Debtor in the Personal Injury matter. The Duties of the Read More +

Trustee Duties In Bankruptcy (part 2)

Part Two: Trustee Duties In Bankruptcy The Duties of the Chapter 7 Bankruptcy Trustee and the Chapter 13 Bankruptcy Trustee are substantially similar but there are some minor differences. The Chapter 13 Bankruptcy Trustee under Bankruptcy Section 1302(b)(4) must, in addition to his Duties enumerated in Part One of our discussion, advise, other than on legal matters, and assist the Debtor in performance under the plan, and ensure that the Debtor begins to make timely payments as required under the Chapter 13 Bankruptcy Plan.

What Are The Trustees Duties In Bankruptcy?

Part One: Trustees Duties In Chapter 7 Bankruptcy And Chapter 13 Bankruptcy The Duties of the Chapter 13 Trustee and the Chapter 7 Trustees Duties in Bankruptcy are largely similar. Bankruptcy Code Section 1302(b)(1) states that the Chapter 13 Trustee must perform the duties specified under Bankruptcy Code Sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9). These Sections of the Bankruptcy Code govern both Chapter 7 Bankruptcy Trustees and Chapter 13 Bankruptcy Trustees. Bankruptcy Code Section 704(2) states that the Trustee must be accountable Read More +

When Can A Student Loan Borrower Contest A Tax Offset?

Grounds To Fight The Government When They Seek To Take Your Tax Refund To Pay Student Loan Debt There are a number of Defenses that Student Loan Borrowers can use if the Department of Education or its Guaranty Agencies attempt to take your Tax Refund through a Tax Offset, in order to Collect on a Student Loan Debt Obligation. These Defenses Include: 1. Cases in which the Student Loan Borrower qualifies for a False Certification Discharge based upon Ability To Benefit, Unauthorized Signature, or Disqualifying Read More +

Seizure Of Tax Refund To Collect Federal Student Loans, Part Ii

Notice Requirements Under Tax Refund Offset Program; Say What? By Jay Weller Under 31 USC Section 3720A(b), the Department of Education, through its Secretary, can refer a Debt for Offset only after having complied with certain procedures. The holder of the loan must mail written notice to the Borrower’s last known address, as determined by the Department of Education or the Guarantor. The Courts that have heard Notice Issue Cases, have ruled that Actual Notice is not required. The Collector must only use Reasonable Means Read More +

Seizure Of Tax Refunds To Collect Student Loans

The Federal Tax Refund Offset Program Unleashed! The Federal Tax Refund Offset Program involves a complete seizure of all tax refunds that are due to debtors who are in default on their student loans. The Program also permits the seizure of monies due debtors through Special Payments such as economic stimulus monies. The Federal Statute allows these offsets, even for debts that are being administered by or collected by, a third party, or private party, acting on behalf of the Federal Government. This same Federal Read More +