Bankruptcy Laws
The US congress passed a set of uniform laws to govern how bankruptcy is dealt with. In these bankruptcy laws, or the bankruptcy code, there are ways to protect the debtor from being harassed while they are trying to pay off their loans. The different methods that can be used are set out in certain chapters of the bankruptcy code.
These bankruptcy chapters such as chapter 11, chapter 9, and chapter 13 are recognized by the judicial courts to be that each state must work with. While the main body of these
bankruptcy laws can't be changed there are various amendments that can be done. These amendments in turn become part of the bankruptcy laws.
From time to time Congress will change the various sections in the bankruptcy code to account for the trends and occurrences in today's business environment. To make sure that you understand what these new are and how they affect you it is best to consult with a lawyer.
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You should make sure that you are looking at these only if you have no other recourse for getting out of financial difficulties. As bankruptcy is a very complicated process you should use this measure only as a last resort.
Since congress can change the to reflect our varied lifestyle expenditure you will find that these laws can make it difficult for you to declare bankruptcy even if you are in non-solvent position to pay off your creditors.
One of the other effects that can be found in the changes that have been made to the chapter 7 is that all debtors must have credit counseling. This counseling will help the debtor understand what they can do to avoid getting into debt again. In the counseling sessions you will be given alternative routes to take with regard paying off your debts.
This credit counseling must be gone through before you can file for bankruptcy. To have this credit counseling you can only use agents that have been approved by the government. Of course you should have received a certificate that states that you have gone through with a credit counseling session.
During the credit counseling you may be presented with a plan to pay off your creditors. Whether you agree with this plan or not you will need to present this plan to the bankruptcy courts.
According to the you will need to visit this center when your bankruptcy
case has been filed. This counseling session will be for you to learn about personal finance management. You must present a certificate from this session of counseling to have your debts discharged fully.
While bankruptcy laws can help protect the person who is in debt trouble, there are instances where the
bankruptcy laws can cause more financial hassles than they were intended for. Therefore bankruptcy should be a last resort only.
Credit Card Bankruptcy
As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the individual has a way of paying off their Read more...
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Bankruptcy is a very misunderstood process and it has been a hush-hush subject for so many families facing financial difficulties. Once you understand your options, you can better decide what choice you should make.
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Recent California Decision Addresses Whether Directors And Officers Can Be Liable For Unpaid Wages Of A Bankrupt Company
<p>When insolvent companies are unable to make payroll or to pay accrued vacation or other amounts owed employees, the question often arises whether directors, officers, or shareholders face personal liability for these unpaid amounts. The California Court of Appeal recently addressed that issue, examining whether particular sections of the California Labor Code, as well as section 17200 of the Business and Professions Code (California's unfair competition law), impose personal liability.</p><p><em><strong>The Court of Appeal Decision</strong></em>. In its April 2008 decision in <em>Bradstreet v. Wong</em>, the Court of Appeal for the First Appellate District held that owners, officers, and managers of an insolvent company, which later filed bankruptcy, were not personally liable for unpaid wages, overtime, vacation pay, and other amounts based on a series of alleged California Labor Code violations. The Court also ruled that these individuals were not liable to pay restitution under Business and Professions Code section 17200. A copy of the Court of Appeal's opinion is available <a href="http://bankruptcy.cooley.com/Bradstreet v Wong opinion.pdf">here</a>. </p><p><em><strong>Risks Remain.</strong></em> Although the decision is a favorable one for officers and directors, risks remain. Be sure to read the <a href="http://bankruptcy.cooley.com/ALERT Labor Code Violations.pdf">informative discussion</a> written by my colleagues in the <a href="http://www.cooley.com/EMPLOYMENT">Employment & Labor Group</a> at <a href="http://www.cooley.com/">Cooley Godward Kronish LLP</a> for a careful analysis of the decision. As they explain, despite this new decision, and the California Supreme Court's 2005 decision on similar issues in the <em>Reynolds v. Bement </em>case, it's possible that directors and officers may still face a risk of individual liability under other California Labor Code sections or based on different legal theories. Depending on the facts and statutes involved, there may also be individual liability under federal law or the laws of other states.</p><p><em><strong>Get Advice</strong></em>. The issues presented when an insolvent company is, or might be, unable to pay wages are complicated. Directors and officers of a company facing this situation should be sure to get both insolvency and employment law advice to help guide them, and the company, through these difficult straits.</p><img src="http://feeds.lexblog.com/~r/BusinessBankruptcyBlog/~4/329514379" height="1" width="1"/>
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