Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
A woman by the name of Ann Elk is filing bankruptcy. She ostensibly owes about $5,000 to a creditor by the name of Orbit Bank. Orbit Bank has contracted with InMotion Debt Collectors to retrieve that debt. Concurrent to this, Ann starts to file a Chapter 7 bankruptcy. An automatic stay, thus, is then issued to help keep the creditors at bay and regulate what they are allowed to do. Despite this, InMotion initially demands that she pay $1,000, which Ann does. Subsequent to this, InMotion files a lawsuit demanding the entire amount due. While InMotion is being aggressive, Ann’s lawyer is wise to tell her to disregard the lawsuit.
She did make that $1,000 payment and it will surely be applied to what she owes. However, InMotion is not going to get anywhere with the lawsuit. The reason is that an automatic stay under Chapter 7 generally puts a halt to a number of legal options and ploys that creditors and their agents will try. This includes lawsuits, garnishments and so forth. It should also stop collection calls and other attempts to collect the debt. It is true that recognizing the legitimacy of a debt can give the debt collector/creditor rights to collect further. However, this is at least temporary nullified when there is bankruptcy proceedings that involve any sort of stay (FindLaw, 2018).
Just how much trouble InMotion might be in would depend on when (or if) they were made aware of the Chapter 7 proceedings. Of course, that would depend on timing, who Ann indicated as being the creditor and whether that information filtered to InMotion or not. Indeed, Ann might have given the name/address of Orbit Bank. This would make sense given that they were the original creditor. Whether Orbit has done…
It provided for fast proceedings, encouraged debtors to reschedule their obligations rather than liquidate and helped creditors recover their claims against bankrupt estates. The 1994 Act also created the National Bankruptcy Commission, charged with investigating further modifications of the bankruptcy law. Latter laws, however, disregarded many of the Commission's recommendations. In April 2005, President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Many
The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects. In common, in the words of a bankruptcy lawyer Jon Schneider of Goodwin Procter in Boston, "There is probably going to be a raft of filings in September to avoid this new law." (Law could trigger Chapter 11 surge) D.J. Baker of Skadden Arps a New York lawyer,
Sometime the debtor is able to successfully reduce its liability and returns to profitability but quite often it returns to seek the court's protection again and sometime the end result is liquidation. Under Chapter 11 protections, the debtor gets an automatic protection from all creditors. The unsecured creditors cannot lay a claim on assets and secured creditors are also prevented from foreclosing on their collateral. A Chapter-11 company also gets
Company audit occurs when there is need to examine the performance of a big company especially the financial and the accounting records over a given period of time. Professionals such as the certified public accountant always do the auditing. The audit of a company is significant in the verification of accuracy particularly in the accounting records. A company like coca cola will need an audit to help in verifying their
dysfunctional behavior that strikes 1 out of 40 or 50 adults and 1 out of 100 children or 2-3% of any population. It can begin at any age, although most commonly in adolescence or early adulthood - from ages 6 to 15 in boys and between 20 and 30 in women -- according to the National Institute for Mental Health. This behavioral affliction is, therefore, more common than schizophrenia