Make Bankruptcy Less Painful by Hiring the Right Columbus Bankruptcy Lawyer [mortgageprotectiontips.blogspot.com]
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"What's going on in Stockton is endemic to what's going on all over the state and the country," said Michael Sweet, a San Francisco bankruptcy attorney at Fox Rothschild LLP. "Local governments are hurting and strained under the current pension and ... Stockton set to become largest US city to declare bankruptcy as officials say ...
A good Bankruptcy lawyer and experienced Bankruptcy attorneys can make the task of filing for insolvency a lot easier. Turbulence in the economy is forcing many people to think about filing for insolvency. In fact, over a million and a half Americans have been doing this in the year 2009. Not all these cases arose because of overspending because factors such as huge medical bills and loss of employment as well as divorce and emergency expenses have all contributed to the problem.
Types of insolvency
Insolvency implies that a person or company is unable to pay their debts after the debts fall due. In most cases, insolvency refers to businesses and more particularly to the inability of the company to repay its debts. There are two types of business insolvencies; cash flow insolvency and balance sheet insolvency. The former implies that the company is not able to pay off its debts after the latter become due.
The latter type implies that the company has negative assets or in plain words, its liabilities exceed its assets. It is possible for a business to experience cash-flow insolvency but at the same time it could also be balance-sheet solvent. This situation occurs when the business has non-liquid assets.Negative assets
It is also possible for the business to have negative assets on its balance sheet but it could still be in a cash-flow solvent position. This situation often arises when the business has ongoing revenues that are sufficient to pay off debts. Once a person or company declares itself as being insolvent it will have to face the consequences. Some jurisdictions consider insolvency to be an offense, especially when it is a company that is declaring insolvency.
Other states may not have such restrictions and these states may even allow the company to continue under special arrangements till such time as alternative options to achieve recovery can be found. The trend is for legislation to favor alternative methods to help the insolvent company wind up for good.Civil action
A company that declares itself insolvent can face civil action. The best course of action for them would be to enter into debt restructuring which allows private as well as public companies and even sovereign entities to reduce as well as renegotiate its bad debts so as to improve and even restore its liquidity. Different countries around the world have worked out their own insolvency regimes and will encourage companies to use different strategies with which to overcome their condition. South Africa, for example, treats owners of the insolvent company to be held personally liable for the debts of their businesses.
The United Kingdom treats insolvent companies differently and will normally put the company into liquidation. There is also provision that allows the directors and the shareholders of the company to initiate liquidation process without involving the courts of law. In the US, there is the Uniform Commercial Code which considers a person to be insolvent when they have ceased to pay their debts in the ordinary course of business or who are unable to pay off their debts that become due.
Related Make Bankruptcy Less Painful by Hiring the Right Columbus Bankruptcy Lawyer IssuesQuestion by : Is it normal for the attorney of a debt collector to threaten to place a warrant out for my arrest ? I have been getting harrassing phone calls from a debt collecting agency and their investigaters. They say i have an outstanding balance with chase bank in the amount of 700 dollars for an uncleared check from a payday loan from 5 years ago. They say they have taken this matter to court and I keep refusing their service letters. This guy is now calling my family members and telling them that if I don't pay them 1100 dollars,then they are issuing a warrant out for my arrest and I need to contact him asap to take care of this uncleared check from 5 years ago or he is isssuing a warrant and i am facing 1 year or more in prison and a large fine. I am in the process of filing for chapter 7 bankruptcy and have retained a lawyer. Is this something that a chapter 7 bankruptcy lawyer can stop. He claims he represents the state. I live in columbus ohio and based on his phone number his office is in dallas texas. The last time i got a call like this, the person was calling from a florida number. i have put these numbers in the computer and they are coming back unknown. Is this something my bankruptsy lawyer can stop? Best answer for Is it normal for the attorney of a debt collector to threaten to place a warrant out for my arrest ?:
Answer by Dwasifar K
Yes, your attorney should be able to put a stop to this. The behavior you describe is in violation of the Fair Debt Collection Practices Act. The threats are bogus; you are not in any danger of arrest or imprisonment. If you tell the collector not to contact you any more, they are legally obliged to stop calling. If they persist, you can report them and collect up to $ 1000 per violation. If you have a bankruptcy in process, you should refer any collection caller to your attorney, tell them not to contact you directly again, and hang up.
Answer by willypeet
No lawyer can @ most it will be a civil matter. So tell the to F Off. Tell them not to call again and by law they can not.
Answer by S
don't worry you don't go to jail for debts. Yes refer them to your lawyer
Answer by regerugged
Tell the debt collectors you have an attorney and are filing for bankruptcy. Let you attorney know everything. If these people persist, you may have grounds to sue them. There is a four year statute of limitations on contracts. they may not be able, legally, to pursue their claim. You cannot be arrested or jailed. It is all a bluff to scare you or someone in your family to pay up. If you need further legal assistance, try www.handleonthelaw.com. Bill Handel loves to sue debt collectors.
Answer by jimbo
In some states it is against the law to issue a check for which you have no funds, they consider it quite a serious charge, so yes they can file with the sheriffs department for an arrest warrant.bankruptcy may not absolve you. Lets get a couple of thing straight. If you issued a check knowing that you did not have the funds to cover the amount, that my friend in any ones book is fraud and you can be arrested and sent to jail. Make no mistake about that. If you have committed an offense by issuing a fraudulent check, going bankrupt is not going to get you out of it.
Answer by Zach
you actually might be able to make some money from these clowns threatening you like this because it is illegal for them to do anything like this. What you should do is record the conversations so that you have proof and then I beleive there is a complaint section in the Federal Trade Commission website. you should also file a complaint with the Better Business Bureau as well as call the police so that there is a police report on this illegal behaviour. Make sure you aks the name of collection company and the name of the bozo and make sure you take some good notes if youre not recording the conversatio n and then when time comes you can go to court and sue them and hit them where it hurts, their bank account. Got get em!
