Bankruptcy In The United States
Insolvency Fraud A. Introduction
Bankruptcy is a leading cause of concern for the government of the United States. According to The Washington Post, in 1991, bankruptcy cases are increasing by eighteen percent (Walsh). The legal definition of Bankruptcy is the permissible procedure for dealing with debt complications of individuals and businesses (United States Code: Title 11,TITLE 11—BANKRUPTCY Legal Information Institute). Specifically, a case filed under any of the chapters of Title 11 of the United States Code the Bankruptcy Code is frequently acknowledged as insolvency (Fraud Examiners Manual). Furthermore, if any form of fraud is committed against this part of the legal system, it is known as White Collar Crime. The Bankruptcy …show more content…
The founding fathers established bankruptcy laws under article one, section 8 in the constitution under clause eight. The clause states, “To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States,” by this, the clause established bankruptcy. The Office of the United States Trustee works in conjunction with the United States Department of Justice, which is responsible for administrating bankruptcy cases, appointing trustees, examiners, and the committees for chapter 11. The office is also responsible for overseeing trustees, reviewing employment and various fee applications, and appearing in court on the matters of interest of the estate and creditors. The mission of the office is to “protect and preserve the integrity of the banking system” (Fraud Examiners …show more content…
Bush signed the main piece of legislation into law in 2005. The legislation was titled The Bankruptcy Abuse Prevention and Consumer Act (BAPCPA) of 2005. This act reformed the bankruptcy code for the first time since it was sanctioned in 1978. The legislation includes many requirements for the debtors to go through before declaring bankruptcy (Singer). The amendments to the Code were not in response to an economic calamity; but rather resulted from a desire to recalibrate the balance of the often-competing interests of debtors and creditors. It was devised to strengthen the rights of creditors, clarify capacities of ambiguity and conceivably change the dynamics of the debtor-creditor relationship. The first requirement is the administration of a Means Test. The test is administered when a trustee or creditor can bring a motion to dismiss a chapter seven filing if the debtor’s income is greater than the state median income
Bankruptcy is a leading cause of concern for the government of the United States. According to The Washington Post, in 1991, bankruptcy cases are increasing by eighteen percent (Walsh). The legal definition of Bankruptcy is the permissible procedure for dealing with debt complications of individuals and businesses (United States Code: Title 11,TITLE 11—BANKRUPTCY Legal Information Institute). Specifically, a case filed under any of the chapters of Title 11 of the United States Code the Bankruptcy Code is frequently acknowledged as insolvency (Fraud Examiners Manual). Furthermore, if any form of fraud is committed against this part of the legal system, it is known as White Collar Crime. The Bankruptcy …show more content…
The founding fathers established bankruptcy laws under article one, section 8 in the constitution under clause eight. The clause states, “To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States,” by this, the clause established bankruptcy. The Office of the United States Trustee works in conjunction with the United States Department of Justice, which is responsible for administrating bankruptcy cases, appointing trustees, examiners, and the committees for chapter 11. The office is also responsible for overseeing trustees, reviewing employment and various fee applications, and appearing in court on the matters of interest of the estate and creditors. The mission of the office is to “protect and preserve the integrity of the banking system” (Fraud Examiners …show more content…
Bush signed the main piece of legislation into law in 2005. The legislation was titled The Bankruptcy Abuse Prevention and Consumer Act (BAPCPA) of 2005. This act reformed the bankruptcy code for the first time since it was sanctioned in 1978. The legislation includes many requirements for the debtors to go through before declaring bankruptcy (Singer). The amendments to the Code were not in response to an economic calamity; but rather resulted from a desire to recalibrate the balance of the often-competing interests of debtors and creditors. It was devised to strengthen the rights of creditors, clarify capacities of ambiguity and conceivably change the dynamics of the debtor-creditor relationship. The first requirement is the administration of a Means Test. The test is administered when a trustee or creditor can bring a motion to dismiss a chapter seven filing if the debtor’s income is greater than the state median income