The New Bankruptcy Law Essay

1515 words - 6 pages

     Bankruptcy has been the answer to extremely troubling and difficult financial times for many people in America. Many individuals, for one reason or another, have found it to be the new start in life that they desperately needed. Unfortunately, bankruptcy has also served as a crutch to many as well, allowing them to relinquish debt that they were completely capable, however selfishly unwilling, to pay. As with any law, or policy, Americans are forced to accept the good with the bad, choosing which outweighs the other. In an effort to combat the increasingly growing abuse of the bankruptcy laws in our system today President George Bush has signed into law a new bill that many hope will help to alleviate much of this.
     Bankruptcy laws began to surface in the United States in the early 1800’s. Initially being created to temporarily relieve bad economic conditions caused by land disputes, community panic, and then, finally, the Civil War. During this time there was little protection for the consumer that found their personal life in financial ruin. Prior to the creation of Bankruptcy laws debtors were severely punished by loss of property, or in some places imprisonment, if they were unable to repay a debt they owed. The idea of a Bankruptcy law was promising for society, however, these laws all did very little to protect the debtor and where repealed shortly after being created.
As the need increased, more bankruptcy laws were later created that would better serve to protect the public debtor whether they were individuals or business that required aide for debt relief. It was the Bankruptcy Reform Act of 1978 that was passed in 1978 that served substantially revamp bankruptcy practices. Two major changes occurred for the bankruptcy act; the first, Chapter 11, which would prove to be a strong business reorganization Chapter, and the second, Chapter 13, which replaced the old Chapter 13 allowing individual access to a more powerful personal bankruptcy. In general, the Reform Act of 1978 made it easier for both businesses and individuals to file for bankruptcy and to reorganize their assets. Of course, this wasn’t the end for reformation concerning the bankruptcy bill. Beginning with President Bill Clinton, in the mid 1990’s, a need for reform regarding bankruptcy policies has continuously been recognized.
     Current bankruptcy laws are designed to give debtors, who have found that they are no longer capable of meeting their financial obligations for one reason or another, a fresh start by relinquishing their debts, and at the same time, maintaining certain personal property assets such has a home, and in some cases, their automobile so that they can truly receive a fresh start in life. While proving to be a beneficial method of dealing with financial tragedy, Bankruptcy has proven to be a nightmare for others.
As bankruptcy filings soared for individuals in the...

Find Another Essay On The New Bankruptcy Law

Bankruptcy Chapter 7 and 13 Essay

534 words - 2 pages including corporations, partnerships, and individuals. To file for Chapter 7 bankruptcy there is a strict set of procedures that someone must follow. The first major step and the most important is to file a petition with the bankruptcy court (Cheeseman, 2006).There is a new bankruptcy law that is now in effect dealing with Chapters 7 and 13 bankruptcy laws. The old law stated that filers could decide on which type of bankruptcy they wish to file

Doctrinal Issues In Consumer Bankruptcy Essay

2383 words - 10 pages response to these changes in the causes of bankruptcy filings.The modern debate over consumer bankruptcy law and policy falls along the fault lines between the "distress," or traditional model, on one hand, and the "incentives," or new institutional economics model, on the other. The core value of the debtor's fresh start remains at the heart of the modern consumer bankruptcy system and remains unaffected by recent reforms to the law. The modern debate

Bankruptcy

1177 words - 5 pages card, then you should work to pay it off instead of forcing yourself into filing for bankruptcy. It will be on your credit report, and you are going to have to live with it over the next decade.Reference:Cheeseman, H. R. (2003). Contemporary Business & E-Commerce Law. Upper Saddle Valley, New Jersey: Prentice Hall.http://www.bankruptcyhome.com

Bankruptcy as it relates to Business Law

2034 words - 8 pages excepted from the discharge. In 1938, Congress overhauled American bankruptcy law. Although most changes affected business bankruptcies, this law also created Chapter 13, the wage earners' repayment plan. The next major change came with the enactment of the Bankruptcy Reform Act of 1978, and has been amended to add several new categories.Every bankruptcy proceeding requires the debtor to file with the court a list of all outstanding debts as well as a

Bankruptcy

604 words - 2 pages part in their own debt obligations.Chapter 11 of the bankruptcy code provides a method for reorganizing the debtor's financial affairs under the supervision of the bankruptcy court. Its goal is to reorganize the debtor with a new capital structure so that it will emerge from bankruptcy as a practical concern. As a result, reorganization bankruptcy is often in the best interest of the debtor and of its creditors. A plan for reorganization may be

Understanding Bankruptcy

1398 words - 6 pages . The main goal in business will always be to maximize profit while minimizing costs. Works Cited Chutchian, M. (2014, Jnauary 23). Law 360. (R. McVay, Ed.) Retrieved March 1, 2014, from http://www.law360.com/articles/503500/commercial-bankruptcies-plunged-in-2013-new-report-shows DebtFreeBankruptcyAttorney.com. (2011). Retrieved February 28, 2014, from http://www.debtfreebankruptcyattorney.com/bankruptcy-questions/how-did-bankruptcy-start

Legal contracts and bankruptcy

637 words - 3 pages other members wanted to have the obligation to stop the petition, they could have provided more money to the renovation. Since they didn't finance more money to the renovation, they have no bounds to stop the petition.Can the bankruptcy court confirm the debtor's plan of reorganization? Explain.Reorganization Bankruptcy is "to reorganize the debtor with a new capitol structure so that it will emerge from bankruptcy as a viable concern" (Cheeseman

Effects of the AMR Corporation Bankruptcy on Airline Passengers and Employees

2369 words - 9 pages the firm successfully reorganizes, its new financial structure begins cutting its debt. If the reorganization fails, the company begins liquidating its assets to repay the stakeholders to whom it owes money (“An Overview of Corporate”). An evaluation of the AMR bankruptcy along with the bankruptcies of its competitors provides insight to its potential impact on airline passengers, airline employees, and the economy as a whole. To put the AMR

Enron

3061 words - 13 pages less than what they are owed. "A Chapter 11 bankruptcy can be a great thing for a cash-starved company being attacked from all sides," said Nancy Rapoport, Dean of the University of Houston Law Center. (Seattle Times; Nov. 30, 2001) To understand why Enron filed Chapter 11 bankruptcy, we first need to look at the laws surrounding bankruptcy and Chapter 11 in particular. Bankruptcy in the United States seeks to benefit both debtors and creditors

cases enron aftermath

2306 words - 9 pages less than what they are owed. "A Chapter 11 bankruptcy can be a great thing for a cash-starved company being attacked from all sides," said Nancy Rapoport, Dean of the University of Houston Law Center. (Seattle Times; Nov. 30, 2001) To understand why Enron filed Chapter 11 bankruptcy, we first need to look at the laws surrounding bankruptcy and Chapter 11 in particular. Bankruptcy in the United States seeks to benefit both debtors and creditors

report

985 words - 4 pages previously stated my ten years of clerical experience has provided me with proficiency in many different software applications. However, I learned how to navigate Best Case in my Bankruptcy Law class that prepared me to navigate New Hope Bankruptcy software with ease. During my externship I learned that customer service skills are imperative to a paralegal’s skillset. In a form-based practice like bankruptcy, it is possible that the paralegal

Similar Essays

Corruption In New Orleans Law & Order System In The Wake Of Hurricane Katrina

2060 words - 9 pages all of the residents who relied and counted on their government to uphold their safety and rights. The Law and Order system relies on police officers, prosecutors, and many more to uphold the standards and rights citizens expect from the United States government. The New Orleans’ Law and Order system proved to be weakened and corrupted after Hurricane Katrina, proven by select cases experienced by residents of New Orleans. Lt. Travis McCabe and

A New Way To Break The Law: A Report On File Sharing Networks

2118 words - 8 pages Is it fair for a man in California to have to refinance his home to pay an $11,000 settlement to the recording industry? “I’m giving up and can’t fight this,” said Ross Plank, 36, of Playa Del Ray, California (Bridis 1). The introduction of file-sharing programs and free music downloading has created a new fuss among music lovers and consumers of the strictly protected music industry. “Is it time to face the fact that in today’s world, copyright

An Example Of The Policy Cycle In New Zealand Using Homosexual Law Reform Act 1986 As A Case Study

2653 words - 11 pages Dorian Society sought advice from the English Homosexual Law Reform Society. This led to the establishment of the first New Zealand Society dedicated to law reform.New Zealand was increasingly being exposed to wider influence which was also demanding change. Changes in society led to the emergence of a new society with a new outlook and new values. Decriminalising homosexuality was brought back into the spotlight by examples of reform in England

Law And Regulation, The Apitome Of American Capitalism? The Emergance Of Wall Street And New York As An International Financial Icon 1900 2002. Steele's Novel "The Great Game"

1764 words - 7 pages Today, Governmental law and regulation seems to be the epitome of American capitalism. But this was not always the case; in the beginning, Wall Street was a ruthless environment with almost no laws or regulatory measures. Fraud, bribes, insider trading, market corners and an overall lack of precise accounting created a tremendously unbalanced market in which small shareholders were the primary losers. Men such as Cornelius Vanderbilt, Jay Gould