Bankruptcy Lawyers

	Practice Areas
	Personal Injury Auto Accidents Truck Accident Motorcycle Accidents Medical Malpractice Slip and Fall Wrongful Deaths Bankruptcy Law Civil Litigation Employment Law Workmen's Compensation Dog Bite Cases Product Liability
	Articles
	Minor Impact, Major Injury Whiplash Accident
	Case Results
	$1.7 Million - Construction Accident $1.32 Million - Failure to Diagnose Cervical Cancer $1.26 Million - Product Liability Award $1.2 Million - Underinsured Motorist Award $1.2 Million - Fall from Stairwell $1.0 Milion - Structured Payout Settlement $900,000 - Automobile Accident Settlement $900,000 - Failure to Diagnose Breast Cancer $900,000 - Failure to Properly Diagnose Breast Cancer $800,000 - Failure to Diagnose Cervical Cancer $750,000 - Automobile Accident $612,500 - RSD injury $600,000 - Unnecessary Surgery


Bankruptcy Law
Bankruptcy law is the portion of civil law which includes federal bankruptcy and state insolvency laws and regulations applicable to individuals, municipalities and businesses. When someone files bankruptcy, the court disbands the property and other assets of the person or business who owes money (debtor). The reasons people file bankruptcy can vary, however, the underlying reason is to resolve a hopeless financial situation. Federal bankruptcy law is organized into Chapters. These Chapters govern the type of proceeding that will take place in court. A business can file for bankruptcy under either Chapter 7 or Chapter 11. Chapter 7 proceedings involve the complete liquidation of the debtor's assets. Chapter 11 allows the businesses to reorganize in the hopes of changing their financial situation. An individual or non business can file for bankruptcy under either Chapter 7 or 13. With Chapter 13, the debtor can repay debts mandated by a court administered repayment plan. Effective October 17th, 2005, Congress made many changes restricting the availability of a discharge in Chapter 7 and reducing the benefits available in Chapter 13. Some of those changes are as follows: In the past a debtor could choose to file either Chapter 7 or Chapter 13 bankruptcy. Today a means test is conducted to determine Chapter 7 eligibility.
When using the means test, anyone with an income below the median, which is an average of 6 months of income, regardless of present income, is exempt and debtors who were above were presumed to be abusing the system. When the calculation for the means systems occurs, only mortgage, child support, back taxes and car payments are subtracted. The burden of proof rests on the debtor to disprove that abuse has not occurred. In the past, any individual who is willing to submit to the jurisdiction of the bankruptcy could file a bankruptcy case. Bankruptcy lawyers were widely available and subject to fierce competition. Presently, debtors must obtain approved credit counseling before they can file. The changes to Chapter 13 are few but important. In the past, debtors who elected chapter 13 were able to catch up with mortgage payments, catch up on back taxes, discharge debts not dischargeable in Chapter 7 and keep non-exempt assets. The disposable income was determined by the judge's assessment of what living expenses were necessary. Today, disposable income is calculated using the IRS collection standards rather than be opened to the judge's discretion. Debtors whose gross income exceeds the state median are required to remain in chapter 13 for five years. The changes to automatic stays (ceasing collection actions against the debtor) are now conditioned in many circumstances in favor of the party owed. One can determine that most, if not all of the changes made are geared in favor of the creditors, not the debtor. If would be advantageous, if contemplating filing for bankruptcy, to consult with a bankruptcy lawyer so that they can help make sense of the muddy areas of the law. For help with legal bankruptcy issues please visit New Jersey Bankruptcy Attorneys Capone and Keefe.