Bankruptcy Personal Effects
Personal bankruptcy law enables, in some jurisdictions, an individual to become declared bankrupt. Nearly every state with an active legal system has some type of personal debt relief program for individuals struggling with insurmountable credit card debt. Personal bankruptcy, unlike corporate bankruptcy, is not generally marked with an official logo by the courts. However, most bankruptcy cases are settled outside of the court system and settled privately between the parties. In this way, many persons that would not otherwise be considered eligible for bankruptcy find the opportunity available through a personal bankruptcy attorney to eliminate their credit card debt.
Personal Bankruptcy is usually a result of default on debts owed to creditors. A creditor will likely file a petition for involuntary liquidation or bankruptcy when an individual cannot payback monies that he owes to him. Creditors are reluctant to liquidate debts unless they are certain that there will not be any chance of collecting on the debt in the future. At this time, the Personal Bankruptcy laws provide an opportunity for creditors to seek repossession of the debtor's assets to secure payment of the outstanding debts. If the court grants the creditors' petition, proceeds from the sale of the debtor's assets will be given to the creditors. Read more great facts,view here.
One very important aspect of Personal Bankruptcy law is that the individual filing for bankruptcy protection from discharge has to provide written permission for certain types of debts. These debts include: medical expenses, child support obligations and child custody and visitation payments. Failure to make any of these payments results in the automatic removal of the bankruptcy protection. Many Personal Bankruptcy attorneys offer a "defense to recovery" service to their clients that involves serving a motion to dismiss the case without giving any explanation as to why the motion was filed in the first place. Personal Bankruptcy cases, therefore, are closely monitored by bankruptcy trustees. For more useful reference regarding Bankruptcy and Debt, have a peek here.
"Defense to Recovery" (DTR) is a way in which creditors who do not want to risk being removed from the property can stop foreclosure proceedings. "D TR" allows the debtor to make monthly payments to the bankruptcy trustee instead of making payments directly to the creditors. Payments made directly to the creditors are exempt from the bankruptcy trustee's auction of property. In other words, the bankruptcy trustee is prohibited from selling property to pay past due accounts until all DTR payments have been made.
The personal bankruptcy trustee may sell a property only if there are sufficient proceeds to satisfy the debt to discharge. If no proceeds are present when the bankruptcy case is filed, a bankruptcy administrator may transfer funds from other accounts to the bankrupt person's account. A bankruptcy administrator cannot transfer money to pay debts that were discharged. The trustee must rely on the proceeds from other accounts to do this. Also, if the property transferred to pay debts does not convert to real property, the transfer is not a valid bankruptcy transaction. Please view this site https://www.huffpost.com/impact/topic/bankruptcy for further details.
The meaning of "residuals" is that the property continues to be owned by the creditor after a bankruptcy is discharged. "Creditors' equities" is the method of treatment for debts of a similar nature that creditors normally use. "In the nature of" is used to show that something exists even though it is not physically present. This test is often used in personal bankruptcy cases. "Effective law" means that the bankruptcy law is intended to provide for an orderly discharge of personal bankruptcy, but does not mean the law actually requires its application in such cases.