Definition of bankruptcy

According to the Bankruptcy Petition filing statistics, consumers filing for bankruptcy in 2017 reported total assets of $80 billion and total debt of $105 billion, according to an annual report filed by the Judiciary with Congress. The report, required by Congress under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Some notable highlights in the report are: 1.       Sixty-two percent of assets were real property, and the remaining assets were personal property. 2.       Debtors in the Northern District of California and in the Southern District of Florida reported the highest average assets per petition, at $583,000 and $338,000, respectively. Filers in the Western District of Tennessee reported the lowest average assets, $44,000. 3.       The median average income reported by debtors was $2,741 a month, and the median average monthly expenses were $2,645. 4.   ...

If a furnisher makes “an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer,” and the consumer “makes the payments or is not required to make 1 or more payments pursuant to the accommodation,” then the furnisher “shall report the credit obligation or account as current.” 15 U.S.C. §1681s-2(a)(1)(F)(ii). If the credit obligation or account was delinquent before the accommodation, the furnisher must “maintain the delinquent status during the period in which the accommodation is in effect; and, if the consumer brings the credit obligation or account current during the period described,” the furnisher must report the credit obligation or account as current. Id. Excepted from these new requirements is a “credit obligation or account of a consumer that has been charged-off.” 15 U.S.C. §1681s-2(a)(1)(F)(iii). The “covered period” began retroactively on January 31, 2020, and lasts until the later of either 120 days after March 27, 2020, the date of...

At The Law Office of Tony Turner, attorney Tony Turner is often asked, “What are some of the Federal Consumer protection laws?” The Credit Repair Organizations Act– The Credit Repair Organizations Act is an act that mandates credit repair organizations give you a copy of your rights as a consumer before you sign a contract. The credit repair organization must also give you a written contract that details your rights and responsibilities,  and are not obligated to pay them until they have fulfilled their obligations. The Fair Credit Reporting Act (FCRA)– FCRA promotes the accuracy, fairness, and privacy of information maintained and reported by credit agencies. The Equal Credit Opportunity Act (ECOA)– The ECOA prohibits creditors from discriminating against applicants based on sex, race, color, marital status, religion, national origin, age, receipt of public assistance, or prior exercise of any rights under the Consumer Credit Protection Act. The Fair Credit Billing Act (FC...

  A bill that’s being proposed to help discharge student loans in bankruptcy. To amend title 11, United States Code, to improve the treatment of student loans in bankruptcy SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Fostering Responsible Education Starts with Helping Students Through Accountability, Relief, and Taxpayer Protection Through Bankruptcy Act of 2021’’ or the ‘‘FRESH START Through Bankruptcy Act’’.  Section 2. EXCEPTIONS TO DISCHARGE. Section 523(a) of title 11, United States code, is amended by striking paragraph (8) and inserting the following: ‘‘(8) for an educational benefit overpayment or loan made, insured, or guaran33333333223teed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship, or stipend received from a governmental unit or nonprofit institution, unless ‘‘(A) excepting such debt f...

  According to a report published on www.uscourts.gov website on October 31, 2018, Bankruptcies fell by 2.2 percent for the 12-month period ending September 30, 2018, compared with the year ending September 30, 2017, continuing a series of slight annual declines in new cases. The September 2018 annual bankruptcy filings totaled 773,375, compared with 790,830 cases in the previous year, according to statistics released by the Administrative Office of the U.S. Courts. The number of bankruptcy cases filed was the lowest for any 12-month period since the year ending June 2007. A national wave of bankruptcies that began in 2008 reached a peak in the year ending September 2010, when nearly 1.6 million bankruptcies were filed. Business and Non-Business Filings, Year Business Non-Business Total 2018 22,103 751,272 773,375 2017 23,109 767,721 790,830 2016 24,457 781,123 805,580 2015 24,985 835,197 860,182 2014 28,319 935,420 963,739 Total Bankruptcy Filings By Chapter ...

  The U.S. Supreme Court earlier this year approved amendments to the Federal Rules of Bankruptcy Procedure that are expected to become effective on December 1, 2018. Many of the amendments are technical and are intended to conform the Bankruptcy Rules to recently amended rules of appellate and civil procedure. Bankruptcy Rules affected by the amendments include Rules 3002.1, 5005, 7004, 7062, 8002, 8006, 8007, 8010, 8011, 8013, 8015, 8016, 8017, 8021, 8022, 9025, and new Rule 8018.1 and Part VIII Appendix. Rule 3002.1. Bankruptcy Rule 3002.1 requires creditors with claims secured by a debtor’s personal residence to provide notice of all post-petition payment changes, fees, expenses, and charges incurred. The proposed amendments to the rule would create flexibility regarding notice of payment changes for home equity loans, include a procedure for objecting to payment changes, and expand the category of parties who can seek a determination of fees, expenses, and charges that are ...

  The main factor that signals whether or not to consider bankruptcy is insurmountable debt. No matter how people try, when they cannot get out from under debt and their situation keeps worsening, bankruptcy may be the right financial remedy. Signs that bankruptcy may be the answer Chapter 7 bankruptcy attorneys in Jacksonville can help people liquidate assets and pay off debts to get a fresh start. Chapter 7 bankruptcy resolves debt rather quickly within a matter of months. Chapter 13 is another bankruptcy option that allows debtors to consolidate debts into a repayment plan where they pay the trustee a monthly amount that goes to creditors. Repayment plans last for a period of three to five years. If experiencing any of the following, consult with an attorney to discuss bankruptcy:     Job loss     Chronic illness and medical debt     Creditors calling or taking legal action     Foreclosure A bankruptcy l...