Put in simple words, bankruptcy law is what allows you, as a creditor to be able to solve your financial problems. It creates a forum where you can develop a repayment plan and stick to it. In some cases your assets will need to be divided and given to creditors. This is often done under a court-appointed trustee who will oversee the entire process. There are several categories under which you can file for bankruptcy. Some of them allow you to continue in your line of work to generate the funds to repay your debts.
Bankruptcy laws also provide for the ability to get discharges where are creditor can free himself of accumulated debt. Once provided by the court a creditor will not be required to pay all of his debts in full.
Bankruptcy law comes under the purview of Federal Law and comes under Title 11 of the United States Code. While the overall law has to be adhered to, each state can be laws that further guide the creditor-debtor in the process of claims. All proceedings in relation to bankruptcy claims are dealt with in the United States Bankruptcy Courts. Bankruptcy proceedings are of two kinds. The most commonly opted for is under Chapter 7 which calls for liquidation. A trustee is appointed to supervise the division of assets to creditors. Bankruptcy can also be filed for under Chapters 11, 12, and 13. These proceedings can be voluntary or can be initiated by the creditors. What these Chapters provide for is a means to allow the debtor to work off his debt.
Once bankruptcy is filed for, creditors will have to wait to claim their dues within the boundaries of the ongoing proceedings. The debtor cannot move any asset that is a part of the proceeding. Any such transfers that had been initiated before the proceedings will be cancelled or invalidated. The Bankruptcy code has several provisions that allow creditors to build priorities. Recent rulings however have held that Individual Retirement accounts cannot be used for withdrawal in bankruptcy cases. This gives some measure of protection to debtors who are already in serious financial trouble.
There have been several revisions of guidelines with regards to dismissals and conversions in relation to proceedings in each of the chapters. The role of the trustees too has been expanded to include more supervisory responsibilities.
Brian Joneta also writes about Bankruptcy and Credit issues including Declaring Personal Bankruptcy and Cost of Declaring Bankruptcy
Article Source:
http://www.articlebiz.com/article/626273-1-an-overview-of-bankruptcy-law/
Showing posts with label Federal Law. Show all posts
Showing posts with label Federal Law. Show all posts
Sunday, February 19, 2012
Sunday, February 12, 2012
BMW to pay $3M fine for US recall issues
CHICAGO—German carmaker BMW has agreed to pay $3 million in civil penalties for failing to report safety defects soon enough, US safety regulators said Friday.
Federal safety regulators launched an investigation in 2010 after noting a “troubling trend” in which “BMW appears to maintain a practice, by design or habit, in which it provides little information in its initial filings.”
The initial reports were missing critical information such as plans to remedy the problem and it took BMW over 30 days on average to update the reports with required information, the safety regulator said.
A review of 16 BMW recalls issued in 2010 found “a number of instances” in which the automaker did not comply with federal law, the National Highway Transportation Safety Administration.
While BMW denies that it violated federal law, it agreed to make internal changes to its recall decision-making process in order to “ensure timely reporting to consumers and the federal government in the future.”
US law requires automakers to report defects within five days and promptly issue a recall to correct the problem.
“It’s critical to the safety of the driving public that defects and recalls are reported in short order,” David Strickland, head of the National Highway Transportation Safety Administration, said in a statement.
“NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner.”
source: http://business.inquirer.net/44115/bmw-to-pay-3m-fine-for-us-recall-issues
Federal safety regulators launched an investigation in 2010 after noting a “troubling trend” in which “BMW appears to maintain a practice, by design or habit, in which it provides little information in its initial filings.”
The initial reports were missing critical information such as plans to remedy the problem and it took BMW over 30 days on average to update the reports with required information, the safety regulator said.
A review of 16 BMW recalls issued in 2010 found “a number of instances” in which the automaker did not comply with federal law, the National Highway Transportation Safety Administration.
While BMW denies that it violated federal law, it agreed to make internal changes to its recall decision-making process in order to “ensure timely reporting to consumers and the federal government in the future.”
US law requires automakers to report defects within five days and promptly issue a recall to correct the problem.
“It’s critical to the safety of the driving public that defects and recalls are reported in short order,” David Strickland, head of the National Highway Transportation Safety Administration, said in a statement.
“NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner.”
source: http://business.inquirer.net/44115/bmw-to-pay-3m-fine-for-us-recall-issues
Subscribe to:
Posts (Atom)
