 Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared 'bankruptcy' (strictly, administration - see text) in the UK. Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization. Image File history File links Download high resolution version (808x1054, 196 KB) Bankrupt computer store, closed without notice the day after its parent company, Tiny PCs and Granville Technology Group, declared bankruptcy in the UK on the 27 July 2005. ...
Image File history File links Download high resolution version (808x1054, 196 KB) Bankrupt computer store, closed without notice the day after its parent company, Tiny PCs and Granville Technology Group, declared bankruptcy in the UK on the 27 July 2005. ...
A creditor is a party (e. ...
Purpose
The primary purpose of the laws of bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment. In economics a debtor (or a borrower) owes money to a creditor. ...
Bankruptcy allows debtors to resolve debts through the division of non-exempt assets among creditors. Additionally the declaration of bankruptcy allows debtors to be discharged of most of the financial obligations, after their non-exempt assets are distributed, even if their debts have not been paid in full. During the pendency of a bankruptcy proceeding, the "debtor" is protected from extra-bankruptcy action by creditors by a legally imposed "stay." Debt is that which is owed. ...
In economics a debtor (or a borrower) owes money to a creditor. ...
The word stays has more than one meaning:- An item of ships gear: see nautical term and stays (nautical). ...
History This word is formed from the ancient Latin bancus (a bench or table), and ruptus (broken). Bank originally signified a bench, which the first bankers had in the public places, in markets, fairs, etc. on which they tolled their money, wrote their bills of exchange, etc. Hence, when a banker failed, he broke his bank, to advertise to the public that the person to whom the bank belonged was no longer in a condition to continue his business. As this practice was very frequent in Italy, it is said the term bankrupt is derived from the Italian banco rotto, broken bench (see e.g. Ponte Vecchio). Others rather choose to deduce the word from the French banque, table, and route, vestigium, trace, by metaphor from the sign left in the ground, of a table once fastened to it and now gone. On this principle they trace the origin of bankrupts from the ancient Roman mensarii or argentarii, who had their tabernae or mensae in certain public places; and who, when they fled, or made off with the money that had been entrusted to them, left only the sign or shadow of their former station behind them. Latin is an ancient Indo-European language originally spoken in the region around Rome called Latium. ...
A bank is an institution that provides financial service, particularly taking deposits and extending credit. ...
Ponte Vecchio over the Arno, Florence The Ponte Vecchio (Italian for Old Bridge) is a famous medieval bridge over the Arno, in Florence, Italy, noted for having shops (mainly jewelers) built along it. ...
Bankruptcy fraud Bankruptcy fraud is a business crime of filing for bankruptcy with criminal intent, that is with the intention of evading payment for goods even though the buyer has funds that could be used to pay for them, or accepting payment for goods or services but not supplying them. Common types of bankruptcy fraud include petition mills, false oath, concealment of assets, and fraudulent conveyance. Multiple filings are not per se fraudulent; as with all things in the law, it depends on the circumstances. Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act (but may prejudice a judge against the filer if there is evidence that bankruptcy is being used strategically). White-collar crimes (a term coined by Edwin Sutherland in 1939) or Business crimes are those crimes specifically performed by white collar employees. ...
A petition mill is a fraud in which the perpetrator poses as a financial advisor, sometimes as a credit counselor or paralegal, filing hastily-prepared bankruptcy documents in the name of victims who come to the advisor as clients. ...
An oath (from Old Saxon eoth) is either a promise or a statement of fact calling upon something or someone that the oath maker considers sacred, usually a god, as a witness to the binding nature of the promise or the truth of the statement of fact. ...
The illegal transfer of property to another party in order to defer, hinder or defraud creditors. ...
For other uses, see Crime (disambiguation). ...
Bankruptcy in Canada - Main article: Bankruptcy in Canada
Bankruptcy in Canada is set out by federal law, in the Bankruptcy and Insolvency Act and is applicable to businesses and individuals. The office of the Superintendent of Bankruptcy, a federal agency, is responsible for ensuring that bankruptcies are administered in a fair and orderly manner. Trustees in bankruptcy administer bankruptcy estates. Bankruptcy in Canada is set out in the Bankruptcy and Insolvency Act under federal law, and is applicable to both businesses and individuals. ...
Wikipedia does not yet have an article with this exact name. ...
Canadian Bankruptcy and Insolvency Act The Canadian Bankruptcy and Insolvency Act is An Act Respecting Bankruptcy and Insolvency. Full text of the act can be found on the Canadian Department of Justice website under Bankruptcy and Insolvency Act ...
Superintendent of Bankruptcy (Canada) The role of the Superintendent of Bankruptcy is to ensure that bankruptcies and insolvencies in Canada are conducted in a fair and orderly manner. ...
A trustee in bankruptcy (TIB), in United States bankruptcy law, is a person appointed by the Bankruptcy court to oversee the distribution of the assets of a bankrupt to his creditors. ...
Duties of trustees Some of the duties of the trustee in bankruptcy are to: - Prepare the bankruptcy documents that assign the person into bankruptcy.
- Review the file for any fraudulent preferences or reviewable transactions
- Chair meetings of creditors
- Sell any non-exempt assets
- Perform counselling for the debtors.
- Object to the bankrupt's discharge.
Creditors' meetings Creditors become involved by attending creditors' meetings. The trustee calls the first meeting of creditors for the following purposes: The word trustee is a legal term that refers to a holder of property on behalf of some other beneficiary. ...
- To consider the affairs of the bankrupt
- To affirm the appointment of the trustee or substitute another in place thereof
- To appoint inspectors
- To give such directions to the trustee as the creditors may see fit with reference to the administration of the estate.
Consumer proposals - an alternative to personal bankruptcy In Canada a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors.
A typical proposal would involve a debtor making monthy payments for a maximum of five years, with the funds distributed to their creditors. Even though most proposals call for payments of less than the full amount of the debt owing, in most cases the creditors will accept the deal, because if they don’t, the next alternative may be personal bankruptcy, where the creditors will get even less money.
The creditors have 45 days to accept or reject the consumer proposal. Once the proposal is accepted the debtor makes the payments to the Proposal Administrator each month, and the creditors are prevented from taking any further legal or collection action. If the proposal is rejected, the debtor may have no alternative but to declare personal bankruptcy.
A consumer proposal can only be made by a debtor with debts of $75,000 or less (not including the mortgage on their principal residence). If debts are greater than $75,000, the proposal must be filed under Division 1 of Part III of the Bankruptcy and Insolvency Act. Canadian Bankruptcy and Insolvency Act The Canadian Bankruptcy and Insolvency Act is An Act Respecting Bankruptcy and Insolvency. Full text of the act can be found on the Canadian Department of Justice website under Bankruptcy and Insolvency Act ...
The assistance of a Proposal Administrator is required. A Proposal Administrator is generally a licensed trustee in bankruptcy, although the Superintendent of Bankruptcy, may appoint other people to serve as administrators. The word trustee is a legal term that refers to a holder of property on behalf of some other beneficiary. ...
Superintendent of Bankruptcy (Canada) The role of the Superintendent of Bankruptcy is to ensure that bankruptcies and insolvencies in Canada are conducted in a fair and orderly manner. ...
According to the Superintendent of Bankruptcy, in 2005 84,638 consumers filed a summary administration personal bankruptcy, and 16,554 individuals filed a consumer proposal.
Bankruptcy reform Vital Bankruptcy reform legislation has been passed into law with Canadian Senate approval and Royal assent on November 25, 2005. The new law will not come into force until June 30, 2006 at the earliest. The Senate (French: Sénat) is a component of the Parliament of Canada, which also includes the Sovereign (represented by the Governor General) and the House of Commons. ...
The granting of Royal Assent is the formal method by which the Sovereign of the United Kingdom, or the Sovereigns representative in Commonwealth Realms, completes the process of the enactment of legislation by formally assenting to an Act of Parliament. ...
November 25 is the 329th (in leap years the 330th) day of the year in the Gregorian calendar. ...
2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ...
June 30 is the 181st day of the year (182nd in leap years) in the Gregorian Calendar, with 184 days remaining. ...
2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ...
A summary and an analysis of the major changes are given in a link at the bottom of this page.
Student loans in bankruptcy Prior to 1997, student loans were discharged in bankruptcy. In September 1997 the Bankruptcy & Insolvency Act was amended so that student loans were only discharged in a bankruptcy if they were more than two years old.
In 1998 the rules were changed again, increasing the time period from two years to ten years. Under bankruptcy reform (see above) student loans will be automatically discharged after 7 years (or 5 years with court approval). A history of changes to the treatment of student loans in bankruptcy can be found at Student Loan Bankruptcy.
Bankruptcy in the United Kingdom - Main article: Bankruptcy in the United Kingdom
In the United Kingdom (UK), bankruptcy (in a strict legal sense) relates only to individuals and partnerships. Companies and other corporations enter into differently-named legal insolvency procedures: liquidation, administration and administrative receivership. However, the term 'bankruptcy' is often used (incorrectly) when referring to companies in the media and in general conversation. There is no single law on bankruptcy in the United Kingdom with there being one system for England and Wales, one for Northern Ireland and one for Scotland. ...
In the common law, a partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which they have all invested. ...
A corporation (usually known in the United Kingdom and Ireland as a company) is a legal entity (distinct from a natural person) that often has similar rights in law to those of a Civil law systems may refer to corporations as moral persons; they may also go by the name...
Liquidation, or winding up, refers to a business whose assets are converted to money in order to pay off debt. ...
Look up Administration in Wiktionary, the free dictionary The word administration is from the Middle English administracioun, deriving from the French administration, which is itself derived from the Latin administratio: a compounding of ad (to) and ministratio (to give service). In modern usage, the word has particular meanings in particular...
A Trustee in bankruptcy must be either an Official Receiver (a civil servant) or a licensed insolvency practitioner. A trustee in bankruptcy (TIB), in United States bankruptcy law, is a person appointed by the Bankruptcy court to oversee the distribution of the assets of a bankrupt to his creditors. ...
The Official Receiver (usually abbreviated OR) is the name of a statutory office holder in England and Wales. ...
In the United Kingdom an Insolvency Practitioner (usually abbreviated as IP) is a person specialising in formal insolvency cases. ...
Following the introduction of the Enterprise Act 2002, a UK bankruptcy will now normally last no longer than 12 months and may be less, if the Official Receiver files in Court a certificate that his investigations are complete. Changes to the Law Governing Bankruptcy Since the 1st April 2004 there have been considerable changes to the laws concerning bankruptcy in England Previously, bankruptcy would typically last for a period of between 2 and 3 years, but now the majority of bankruptcies will be discharged after only 12 months. ...
It is expected that the UK Government's liberalisation of the UK bankruptcy regime will increase the number of bankruptcy cases; initial Government statistics appear to bear this out. It remains to be seen whether the legislation will need reviewing if this remains the case.
There were 20,461 individual insolvencies in England and Wales in the fourth quarter of 2005 on a seasonally adjusted basis. This was an increase of 15.0% on the previous quarter and an increase of 36.8% on the same period a year ago.
This was made up of 13,501 bankruptcies, an increase of 10.9% on the previous quarter and an increase of 37.6% on the corresponding quarter of the previous year, and 6,960 Individual Voluntary Arrangements (IVA’s), an increase of 23.9% on the previous quarter and an increase of 117.1% on the corresponding quarter of the previous year. In the United Kingdom, Individual Voluntary Arangements (IVAs) are a formal alternative for individuals wishing to avoid petitioning for their own bankruptcy. ...
Bankruptcy in the United States - Main article: Bankruptcy in the United States
Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8), which allows Congress to enact "uniform laws on the subject of Bankruptcy throughout the United States." Its implementation, however, is found in statute law. The relevant statutes are incorporated within the Bankruptcy Code, located at Title 11 of the United States Code, and amplified by state law in the many places where Federal law either fails to speak or defers expressly to state law. Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8), which allows Congress to enact uniform laws on the subject of Bankruptcy throughout the United States. ...
The United States Code (U.S.C.) is a compilation and codification of the general and permanent federal Law of the United States. ...
The United States Constitution is the supreme law of the United States of America. ...
Congress in Joint Session. ...
A statute is a formal, written law of a country or state, written and enacted by its legislative authority, perhaps to then be ratified by the highest executive in the government, and finally published. ...
The United States Code (U.S.C.) is a compilation and codification of the general and permanent federal Law of the United States. ...
While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often highly dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often quite unwise to generalize bankruptcy issues across state lines. In the United States, Federal courts have exclusive jurisdiction over bankruptcy cases. ...
Wikipedia does not yet have an article with this exact name. ...
Bankruptcy chapters There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code: Bankruptcy is enabled by the United States Constitution, but its implementation is by statute. ...
The United States Code (U.S.C.) is a compilation and codification of the general and permanent federal Law of the United States. ...
- Chapter 7 (a liquidation-style case for individuals or businesses),
- Chapter 9 (Municipal bankruptcy)
- Chapter 11 (a more complex rehabilitation-style case used primarily by business debtors, but sometimes by individuals with substantial debts and assets).
- Chapter 12 (a payment plan or rehabilitation-style case for family farmers and fishermen), and
- Chapter 13 (a payment plan or rehabilitation-style case for individuals with a regular source of income),
- Chapter 15 (ancillary and other cross-border cases)
The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. Chapter 7 of the Bankruptcy Code governs the process of liquidation under the bankruptcy laws of the United States. ...
Chapter 11 of the Bankruptcy Code governs the process of reorganization under the bankruptcy laws of the United States. ...
Chapter 12 refers to Chapter 12 of Title 11 of the United States Code, a chapter of the Bankruptcy Code. ...
Chapter 13 bankruptcy filing is a way for individuals in the United States to undergo a financial reorganization supervised by a federal bankruptcy court. ...
Chapter 7 Chapter 7 personal bankruptcy is also known as straight bankruptcy, or liquidation bankruptcy. Under Chapter 7, debtors give up certain property that they own when they go bankrupt. The property is sold, and the proceeds are used to pay the creditors. In most cases debtors have few if any non-exempt assets, and thus in most cases they do not lose anything. In most Chapter 7 cases most debts are discharged about 90 days after filing. Debts that are discharged (which means they go away) include credit card debts. Debts that are not discharged would include child support payments and some taxes and student loans. Secured debts, such as car loans and house mortgages, are also not discharged. Under the new rules implemented as a result of the 2005 Bankruptcy Reform, it is now more difficult to qualify for Chapter 7 bankruptcy. Debtors are subject to a means test, and if income exceeds limits set by the government, the debtor must file under Chapter 13. Chapter 7 of the Bankruptcy Code governs the process of liquidation under the bankruptcy laws of the United States. ...
Chapter 13 Chapter 13 bankruptcy is a reorganization plan for individuals. To qualify for Chapter 13, an individual must have secured and unsecured debts under a certain amount. Under Chapter 13 the debtor keeps all of their property, but in return they make regular payments to a trustee, who distributes the payments to the creditors. Most Chapter 13 plans last for three to five years, and then the remaining unpaid and eligible debts are discharged. The types of debt that can be discharged under Chapter 13 was substantially scaled back by the 2005 reform amendments. Creditors may challenge a Chapter 13 plan but a plan can still be confirmed over their objection if the criteria for confirmation is otherwise met. A requirement for confirmation of a Chapter 13 plan is that unsecured creditors would receive at least as much as they would receive in a Chapter 7 liquidation. Chapter 13 bankruptcy filing is a way for individuals in the United States to undergo a financial reorganization supervised by a federal bankruptcy court. ...
Chapter 7 of the Bankruptcy Code governs the process of liquidation under the bankruptcy laws of the United States. ...
Sources American Bankruptcy Institute
Bankruptcy America
U. S. Bankruptcy Courts
Bibliography Born Losers: A History of Failure in America, by Scott A. Sandage (Harvard University Press, 2005).
See also Debt consolidation entails taking out one loan to pay off many others. ...
This article is in need of attention. ...
To meet Wikipedias quality standards, this article or section may require cleanup. ...
External links |
Feeds |
Contact