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The Coming Crisis – Part IV
Pension Plans And The Detroit Bankruptcy This is Part IV in the series on Pension Plans And The Detroit Bankruptcy: The Coming Crisis. Please refer to the prior articles in the series for context. Another possible victim of the bankruptcy plan offered by the city of Detroit is its treatment of individuals with lawsuits…
The Coming Crisis – Part III
Pension Plans And The Detroit Municipal Bankruptcy Please read the preceding articles of this series on pensions plans and the Detroit municipal bankruptcy to gain a better context and understanding of this article. The plan proposed by the city of Detroit in its municipal bankruptcy in late July of 2014, was accepted by approximately…
The Coming Crisis – Part II
Pension Plans And The Detroit Municipal Bankruptcy Please read Part I of this series on Pension Plans and Municipal Bankruptcy to gain a better context for this and the following blog articles on Municipal Bankruptcy, Detroit, and the coming crisis in governmental pension plans. According to the Chicago Tribune, the City of Detroit proposed…
The Coming Crisis – Part I
Pension Plans And Municipal Bankruptcy Detroit is in Bankruptcy. Detroit is Bankrupt. As of the date of this article, August 19, 2014, Detroit is the debtor in a municipal bankruptcy. Not only individuals or persons, or corporations, can file Bankruptcy. Cities can also file bankruptcy, and seek its benefits and protections. A major issue…
The Rise Of The “Foreclosure Rescue” Companies
With the many millions of homeowners having difficulty with the terms of their mortgages, there has been created a large number of groups that portend to assist such homeowners in modifying their mortgages. While there are legitimate and well meaning participants, there are also a number of unscrupulous foreclosure rescue companies that are essentially…
The History Of Debtors Prisons And Why It Is Important To You (3 of 3)
Debtors Prisons In Early American History Debtor’s Prisons existed in the United States dating from the beginning of Colonization to 1850. Numerous important early political figures were incarcerated throughout the history of debtors prisons, most likely giving the Founders a perspective on the ills of the debtor prison system. William Morris, one of the signors…
The History Of Debtors Prisons And Why It Is Important To You (2 of 3)
Debtor Prisons In United States Today In the United States, although there are no Debtors Prisons specifically, a debtor can be imprisoned in numerous circumstances under criminal penalties which are usually imposed monetarily, but for which the debtor is unable to pay. For example, persons can be found in Contempt of Court and imprisoned after…
The History Of Debtors’ Prisons And Why It Is Important To You (Part 1 of 3)
Debtors’ prisons have existed for many centuries on this planet, and in fact, many forms of bonded servitude and slavery still exist today. Bonded servitude is practiced in India, and other nations, and slavery in its most brutal forms, is practiced in various parts of Africa. Debtors’ prisons are facilities where persons are imprisoned who…
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…
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…
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…