• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  • Level: GCSE
  • Subject: Law
  • Word count: 1506

The process of Bankruptcy.

Extracts from this document...

Introduction

Research Paper Bankruptcy November 25, 2005 The process of Bankruptcy was put in to place in order to assist corporations and individuals the opportunity to discharge from unpaid debts. This research paper will discuss the history of bankruptcy and the new laws that changed the status of filing bankruptcy. The first identified bankruptcy law was passed in England in 1542 in order to give creditors a solution (other than imprisonment) against debtors who did not pay their bills. Under this law debtors were considered "quasi criminals" (Skeel) In 1570, England passed a second bankruptcy law that indicated the following: * Only a creditor could instigate a bankruptcy case, basically bankruptcy was involuntary for the debtor. * Only a merchant could be a debtor. (Ordinary people were being thrown in jail) * During the bankruptcy a commissioner seized the bankruptcy assets, sold and distributed them pro rata to the creditors. * At the end of the case, the debtor did not obtain a discharge of the balance; therefore creditor could continue their collection efforts. (History of Bankruptcy) In the next 100 years Parliament made many changes to this bankruptcy law, more so to let the commissioner take more of the bankrupt's assets and to increase penalties for noncompliance. A 1604 amendment allowed the debtor's ear to be cut off. ...read more.

Middle

(History of Bankruptcy) During the 1920's, the act was amended to add grounds for denial of discharge and debts excepted from the discharges. In 1938 Congress overruled American bankruptcy law. Even though most changes affected mainly business bankruptcies, this law also created Chapter XIII, the wage earners repayment plan. (Skeel) The next major change came in the Bankruptcy Act of 1978. It was amended in 1984 to add many new categories of non-dischargeable debts. The law has been maneuvered since then, however Congress has not changed the vital nature of bankruptcy in America for at least 100 years. (Skeel) However recently changes in bankruptcy law have emerged. The House of Judiciary Committee passed the senate version of the Bankruptcy Reform Act. (Boute) The law will not only stop many people from being able to qualify to file bankruptcy it will also increase the cost of legal representation. Since the law makes the debtor's attorney personally liable to creditors if there are errors or mistakes in the debtors paperwork. (Boute) This means that if the client is deceitful and lies or is incorrect by accident. The Attorney can be required to pay damages to the creditors. Given that scenario the attorneys may need to bare more expenses by hiring a private investigator, which the client will have to bear the extra cost. ...read more.

Conclusion

(Boute) In many states Florida, Boston, and several others around United States an increase of debtors lined up on the sidewalks and halls of the U.S. Bankruptcy clerk of court offices. In a last minute rush to file their claims before the tough bankruptcy law came into affect. The Florida claimants were the last among an estimated 10,000 South Floridians who filed for bankruptcy since October 1, 2005. (State receives) Research shows that about half the families in bankrupsy filing have serious medical problems. Two thirds of those who file have lost a job or small business. Twenty percent have just suffered a family breakup- a husband who disappeared, a wife who died, a family that separated by long distance. (North Carolina Statistics) Statistics in North Carolina 2002: Total Consumer Business Chapter 7 17466 17096 370 Chapter 11 144 17 127 Chapter 12 8 -- 8 Chapter 13 18764 18693 71 Total 36382 35806 576 (North Carolina Statistics) Some bankruptcy experts indicate that the new means testing will affect perhaps 5 percent of 15 present of filers. Bankruptcy is meant to provide legitimate relief for some overburden Americans. Unfortunately, some individuals have taken advantage of current law to avoid financial obligations. The new law will force more bankruptcy filers capable of repaying their debts to do so and not have them be relieved so easily. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Law section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Law essays

  1. Marked by a teacher

    abortion research

    4 star(s)

    So long as we accept the existence of a secular sphere where religious leaders have no authority and religious doctrines cannot be the basis for law, we must also accept that civil law may be at odds with religious beliefs.

  2. Worlds Apart: Orientalism, Antifeminism, and Heresy in Chaucer's Man of Law's Tale

    1271), which encourages Muslims to think that "they themselves were in a fair way to becoming Christians." A later work expressing the same viewpoint but addressed to a Christian audience is Mandeville's Travels. It opens its discussion of the Saracens with an enumeration of the beliefs and doctrines shared by

  1. Civil Obligations - Agreements

    but, whether it is retrospective or not, it seems that the minor cannot recover money which he has already paid unless there has been a total failure of consideration. Restitution by a minor, where a minor has obtained property under a contract which is not enforceable against him, means the

  2. The Law Relating to Negotiable Instruments

    out to be false, stolen or forged, the shah is bound to refund the amount of the Hundi with interest unless he produces the actual drawer or the person who committed the fraud. The drawee to recover money should file a separate suit against the shah.

  1. The criminal process

    a long sentence is likely, a weapon or violence was used or threatened, the offence was motivated by race, gender, sexuality, politics, religion or nationality, the offence is one against a servant of the public e.g. nurse, policeman etc. On the other hand, prosecution will be less likely if a

  2. Legal history of China.

    Second, patriarchal clan system no difference between the country and the family. People were divided into different classes, and people of different status must abide the rule of his class Third, emphasize ceremony. Ceremony is the activities of sacrifice , it has the character of criterion, compulsion, the will of country, such as the character of law.

  1. A Thirteen Year War: On Terri Schiavo

    Terri Schiavo, on the other hand, has been in this state for over thirteen years and her chances of recovery are shy to none. Bob Schindler, Terri's father told CNN that they have "found fifteen doctors who are on record with the courts saying she can improve and will improve.

  2. Criminal Law (Offences against the person) - revision notes

    Case law of provocation R v Brown (1972) - Brown reasonably mistakes that a gang was about to attack him. He killed one of the 'attackers' with a sword. Provocation plea accepted R v Doughty (1986) - (shows the lowest level of provocation) Doughty could not hear the TV because the baby was crying so she struck the baby and killed it.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work