In the world of public finance, Orange County, California, has long had an unfortunate distinction: In 1994, the county filed the largest municipal bankruptcy declaration in history, seeking court assistance to restructure $1.7 billion in debt. This month, however, Orange County finally lost its dubious claim to fame. On November 9, political leaders in Jefferson County, Alabama ? home of Birmingham, the state?s largest city ? asked a federal bankruptcy court to help the county restructure debt of more than $4 billion. The county?s debt burden stems from a disastrous investment in a local sewer system and amounts to nearly $7,000 for each of the 658,000 men, women and children who call the county home. That a bankruptcy declaration of such magnitude is possible has raised alarms nationally over whether more municipal crises may be on the way. In this explainer, Stateline examines what it means when a municipality files for Chapter 9 bankruptcy ? and why states should care. What is Chapter 9? It?s the portion of the federal bankruptcy code that applies to municipalities. Created by Congress in 1937, it allows municipalities to seek court protection in the event of fiscal crisis and is meant to ensure that basic government functions can continue while policy makers restructure their debt. Chapter 9 differs from other sections of the bankruptcy code, such as Chapter 11 and Chapter 13, which generally provide court relief to cash-strapped businesses and individuals, respectively. Who can file for Chapter 9? Only municipalities ? not states ? can file for Chapter 9. To be legally eligible, municipalities must be insolvent, have made a good-faith attempt to negotiate a settlement with their creditors and be willing to devise a plan to resolve their debts. They also need permission from their state government. Fifteen states have laws granting their municipalities the right to file for Chapter 9 protection on their own, according to James Spiotto, a bankruptcy specialist with the Chicago law firm of Chapman and Cutler. Those states are Alabama, Arizona, Arkansas, California, Idaho, Kentucky, Minnesota, Missouri, Montana, Nebraska, New York, Oklahoma, South Carolina, Texas and Washington. The remaining states all want a say in the process, in some cases requiring that municipalities receive state approval before they file. One of those states, Pennsylvania, is now in the process of challenging the bankruptcy declaration made by its own capital city, Harrisburg, in October. Georgia is the only state that does not allow its municipalities to file for bankruptcy under any circumstances. Georgia municipalities in severe fiscal trouble ?are left to work things out within the state political system,? says Paul Maco, a municipal bankruptcy expert and partner with the Vinson & Elkins law firm in Washington, D.C. That could include asking the legislature for emergency funds. States have plenty of serious fiscal problems, too. Why can?t they file for bankruptcy? States have not been granted that authority by Congress, nor have they sought it. The idea of allowing state bankruptcy was floated earlier this year by Newt Gingrich, the former U.S. House speaker and current presidential candidate, and Jeb Bush, the former Florida governor. In a Los Angeles Times op-ed, the two Republicans argued that bankruptcy would be a way for strapped states such as California and Illinois to tackle their enormous debts, particularly for public pensions and other retirement benefits. State leaders from both parties repudiated the idea. ?The mere existence of a law allowing states to declare bankruptcy only serves to increase interest rates, raise the costs of state government and create more volatility in financial markets,? Nebraska Governor Dave Heineman, a Republican, and Washington Governor Chris Gregoire, a Democrat, said in a joint statement. The last time any state came close to bankruptcy ? by defaulting on its loans? was during the Great Depression, when Arkansas racked up $160 million in debt on what was then a $14 million annual budget. How common are municipal bankruptcies? Very rare. Since 1937, when Congress added Chapter 9 to the federal bankruptcy code, about 620 municipalities have filed for bankruptcy. That?s fewer than 10 a year. In the last year alone, by comparison, there were nearly 12,000 bankruptcy filings under Chapter 11 and 418,000 under Chapter 13, according to the administrative office of the U.S. Courts. Most municipalities that do file for bankruptcy are special tax districts and small jurisdictions that do not issue public debt. Municipal utilities are a common example. What happens once a municipality files for Chapter 9? Municipal finances move into the jurisdiction of the courts, but not in the way that corporate or personal finances in Chapter 11 or Chapter 13 cases do. Under those sections, courts have broad leverage to control the finances of the company or individual to chart a path forward. In addition, creditors have more leverage, such as by foreclosing on the home of a bankrupt individual. In Chapter 9 bankruptcy, creditors cannot, for instance, foreclose on a municipal building to recoup the money they are owed. More importantly, the courts themselves have no authority to make spending or other policy decisions on behalf of the municipality. That power remains with the locality under the U.S. Constitution. Under Chapter 9, municipalities must come up with their own debt restructuring plans, and courts approve or reject it with input from other stakeholders. Source: stateline.org Source: filebankruptcyco.com Source: filebankruptcyco.com Source: businessbankruptcyco.com Source: bankruptcylawyersco.com Source: bankruptcycaliforniaco.com Source: debtreliefmag.com Source: debtreliefmag.com Source: debtreliefmag.com Source: foreclosureattorneyco.com
Source: foreclosureattorneyco.com
Video: San Diego Bankruptcy Attorney Best Bankruptcy Attorney San Diego
Efficient Utah Bankruptcy Attorneys
Efficient Utah Bankruptcy Attorneys give you the best when it comes to bankruptcy protection in a competent court of law. They are aware of your needs and this is the reason why you get the best when it comes to understanding bankruptcy rules and regulations with success. These professionals also give you sound legal advice and counsel so that you are in a position to make better decisions. Thanks to them you get the legal aid and support you deserve with success!
Source: codiarch.org
Finance tips, insurance?: How to Find a Good Bankruptcy Lawyer
Going through the rigmarole of a bankruptcy trial can be tough for any applicant and the only way the matter can be simplified is by finding a good lawyer, who can steer you through the entire process and guide you in the right direction. You want to be in experienced hands for something as important as the bankruptcy trial. Finding a Good Bankruptcy Lawyer They say that finding a good lawyer is half the battle won in any court room battle. An astute bankruptcy lawyer, well versed in this abstruse field of law, can provide you with guidance through the legal maze. Bankruptcy is a subject of federal law and the legal proceedings are handled by the United States Bankruptcy Court, which fall under the aegis of United States District Courts. According to the United States Code, you can file for any of the six different types of bankruptcies, according to the nature of your insolvency problem. You need an expert lawyer, well versed in this sector of law, who can guide you regarding which chapter of bankruptcy law should your case be filed under. In the following lines, you will find some advice regarding finding good bankruptcy lawyers. There are many sources of information you can tap to find the right lawyer for the job. Here are some tips on how you could find one. Go By Referrals One of the simplest ways you can find the names of some good lawyers is to ask some of your acquaintances and friends who have been through bankruptcy legal proceedings. Their personal testimonials regarding the way their case was handled by a lawyer, can help you in choosing one. You can make a list of referrals and then research their profile further and interview them to determine whether he or she is the right person for the job. Check Out Local Bar Association For References Another way of finding out good bankruptcy lawyers is to inquire with the local bar association for recommendations. You can get pointers regarding some of the best bankruptcy lawyers there. Consult With Your Own Attorney Your own regular attorney can be consulted to find lawyers specializing in bankruptcy law. He or she can tap his own network of contacts to find a good lawyer who can do the job efficiently. Inquire With Law Firms Meet up with some of the best law firms in your area and interview lawyers who may take up your case. Go for law firms which specialize in bankruptcy cases. Search on the American Board of Certification Website Another way of finding good bankruptcy lawyers is visiting the American Board of Certification website for names of bankruptcy lawyers that work locally. Just enter your zip code and the kind of bankruptcy lawyer you are looking for to get a list of names. You may also contact the ?American Bankruptcy Institute? and the ?National Association of Consumer Bankruptcy Attorneys (NACBA)? for information about experienced bankruptcy lawyers working in your city.
Source: blogspot.com
Qualities of Suitable Bankruptcy Lawyers for You
Whenever you are going through a financial difficulty and you end up accumulating debt, it is very important to look for bankruptcy lawyers in New Orleans to help you get through the problems. Accumulating debt can lead you into a very tough time and you will need to find a way out of the situation so that you do not end up sinking in debt. Declaring bankruptcy or thinking of debt consolidation can be some of the best debt relief you can think of.
Source: juliusschwartz.com
How Debt Settlement Works
If you are thinking about filing for bankruptcy, you may not be sure where to start. Finding the right bankruptcy attorney to handle your case could be the best way to deal with your bankruptcy questions. In the meantime, before filing for bankruptcy, you might consider other alternatives. A bankruptcy will remain on your record for a long period of time. However, there is a good chance that if you are thinking about filing for bankruptcy, then your credit is probably in bad shape already. A bankruptcy could be your chance to relieve your debts completely and give you a fresh start. According to the revised Bankruptcy Code, an individual is required to attend credit counseling to discuss other options, 180 days prior to the bankruptcy filing case. If bankruptcy is right for you, then you might want to look into what chapter of bankruptcy applies to your case. One of the more popular chapters is a chapter 7 bankruptcy where your debts can be completely liquidated. However, in order to qualify for this chapter, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) demands that individuals take the means test before filing a chapter 7 bankruptcy. The other common chapter is the chapter 13. Individuals who file for this chapter generally have a steady income and will set up a payment plan to pay off their debts. If you are looking to hire a bankruptcy attorney, it would be a good idea to hire someone you can be in direct contact with, versus a paralegal from a large law firm. Once you have selected a bankruptcy lawyer, you could then set up a meeting time to discuss your bankruptcy case and your best strategy going forward. Your attorney may also provide you with the means test. The cost for a bankruptcy attorney will also vary. Some attorneys require a flat fee, while others will let you pay them in installments. The fees will also depend on your location. In some instances, you may be able to file for free, but if you decide to file for a chapter 7, then you will most likely have to pay your attorney fees before your case is filed. In a chapter 13, your attorney fees may be included in your payment plan that you have laid out in your file. You can talk with your attorney about fees and the associated costs with filing for bankruptcy to get a better idea of what you will be paying up front. Once you have a bankruptcy attorney secured, you may then direct your creditors to his or her office. Your bankruptcy attorney will most likely handle all your creditor calls on your behalf and the automatic stay will go into effect. This automatic stay prohibits creditors from contacting you to harass you about your debts. Creditors are most likely held liable if they violate the automatic stay in which case you could be awarded for punitive damages. When your file is submitted, you may get a letter in the mail for a creditor meeting, also known as the 341 meeting. This meeting will enable the trustee of your file to ensure with you that your file is truthful and that you understand the terms of a bankruptcy. Your bankruptcy attorney will probably go over all of your listed debts with you prior to this meeting so that you can be prepared. Your answers in the meeting may be recorded, but on average, the meeting will last only approximately 10 minutes. Your trustee may then decide which assets are exempt and which are non-exempt. If there are assets listed that are considered non-exempt, these properties may be sold.? In a chapter 13 bankruptcy, you may enter a three to five year plan that involves paying back your creditors over time. While you are filing for bankruptcy, it would be a good idea to discontinue using your credit cards as well. If you use these, your creditor may utilize this against you in a lawsuit by challenging your right to a debt discharge. ?In most bankruptcy cases, your creditors will have sixty days from your meeting to challenge the discharge of your debts. If no lawsuits are filed, you may receive a discharge of your debts. In a chapter 13 bankruptcy, you can be notified anywhere from thirty to sixty days after your last payment and the trustee declares that your plan has been completed. Keep in mind that not all debts can be discharged in a bankruptcy, including student loans and specific taxes. Discharged debts usually depend on certain bankruptcy provisions and whether your creditor persuaded the judge to not discharge a particular debt. In any bankruptcy case, it would be a good idea to hire an attorney who can help you through the bankruptcy process so that you can hopefully be debt and stress free. Source: lawadvicenow.com Source: chapter12bankruptcyco.com Source: filebankruptcyco.com Source: filebankruptcyco.com Source: bankruptcyquestionsco.com Source: bankruptcyco.org Source: bankruptcyrecordsco.com Source: bankruptcyrecordsco.com Source: bankruptcycourtco.com Source: bankruptcycourtco.com Source: unitedstatesbankruptcycourtco.com Source: bankruptcycourtco.com Source: debtsettlementusaco.com Source: howtofilebankruptcyco.com Source: debtreliefmag.com
Source: debtreliefmag.com
Related posts:
- Top 10 Bankruptcy Questions Answered
- Top 20 Frequently Asked Questions on Florida Short Sales and Foreclosures
- What sort of Bankruptcy Attorney In Chi town Might help
- What sort of Bankruptcy Attorney In Chi town Might help
- 5 Bankruptcy Questions To Ask Your Attorney Before Filing
Source: http://foreclosureattorneyco.com/top-10-bankruptcy-questions-answered-2/
badgers nbc sports network mendenhall demarcus cousins savannah brinson mount rainier ohio state football
No comments:
Post a Comment