Bankruptcy Laws You Must Know
Posted on by

qwrq32Bankruptcy laws are state specific but definitely not without federal reference. Of late, they are tightened to raise minimum credit card debt payments, as a first step. Personal bankruptcy laws have certain requirements for the debtor too, as most of these are taken from federal laws, title 11 of the United States Code. However, the primary goal of the bankruptcy laws is to provide debtors an opportunity to start afresh.

All major changes to bankruptcy laws are in place already. So what can you expect? They are specifically targeted at preventing abuse of it; and try to limit the homestead exemptions. Most of the changes are technical and procedural in nature making them tougher. The new changes are reflections of law makers’ concern to a country with millions in debt beyond their ability to payback.

From the perspective of an ordinary citizen, bankruptcy laws can be taken as part of a safety net enjoyed in America. Because, they ultimately provide you relief from debts and save you from sliding further into crisis. If you, the debtor, are honest, take it for granted that the new bankruptcy laws are intended to provide you with a fresh start to get free from old obligations and debts. But simultaneously, if you are out to take advantage of the changed bankruptcy laws, you will be eliminated ruthlessly. What point this drives home is that- bankruptcy certainly helps you out of financial mess but it simply is not charity. They are in place to provide you and your business an opportunity to pull-up your socks and discharge the debt before getting a fresh start.

What is chapter 7 bankruptcy? Most of it deals with consumer bankruptcy, concentrating on the liquidation process under the federal bankruptcy laws. So what is this Chapter 7 Bankruptcy? Chapter 7 cases are no asset involved cases, and debts are eliminated without a need for repayment. But the new changes to bankruptcy law don’t let debtors file Chapter 7 bankruptcy easily making it harder to qualify for Chapter 7 debt relief. You are required to meet what is known as ‘means test’ to provide for qualification under federal bankruptcy laws. On the other side, some commentators feel that Chapter 7 ruins credit card companies.

Business & Corporate Laws Govern Business and Commercial Transactions
Posted on by

r432Business and corporate laws are also respectively known as commercial and company laws. Both forms of law govern business and commercial transactions as well as the internal rules of business firms. Business laws refer to the laws involving contracts, sales, commercial paper, agency, and employment law among many others. Corporate law, on the other hand, studies the relation between businesses and consumers under the internal rules of the firm. Both provide the bodies of law that govern all business and corporate transactions whether in private or public.

Business law refers to the laws which are applied to business entities such as partnerships and corporations. These are used as reference when putting up businesses whether big or small – from sole proprietorship to corporation. Business laws specify how different business can be set up, how taxes apply to them, registrations, documentations and requirements; define different terms pertaining to business, making by-laws, and articles of organization among many others. These also provide the regulatory schemes on how commerce should be conducted.

Business law is applied to all sectors of businesses such as automotive, estate planning, health, law, intellectual property, litigation, employment and labor, business restructuring and business & corporate. It governs all business and commercial transactions whether private or public. Business law also covers other business issues such as starting, selling or buying other businesses, managing the business, dealing with employees and contracts to name a few.

Corporate law, on the other hand, involve the same laws and processes under business laws but have 5 defining characteristics which include:

  • separate legal personality of the corporation
  • limited liability of the shareholders
  • transferrable shares
  • delegated management
  • investor ownership

These are all applied largely for corporations which are publicly owned. Corporate law is applied to protect both company and shareholders’ rights especially if the corporation fails or is involved in legal matters. Corporate law can be traced back to the middle ages when medieval guilds were formed but not for common profit. It was also during this time that different forms of businesses such as partnership were developed.

Corporate law covers corporate governance that includes the corporate constitution, balance of power, corporate personality, capacity and powers, director’s duties, and corporate litigation. All of these are vital for the application of corporate laws. In addition, this also involves how shares, liquidations and dealings should be handled as well as in cases of corporate crimes, mergers, acquisitions and insolvency of the company.