StudentShare solutions
Triangle menu

EU and US Bankruptcy Law - Essay Example

Nobody downloaded yet

Extract of sample
EU and US Bankruptcy Law

The differing techniques to the stability between rights of creditors and debtors are reflected in the connection requisite to establish bankruptcy control. In the US, the connection obligatory is very small; whereas throughout the EU it has historically been much more substantial. Yet the consequences for stakeholders of all descriptions of the jurisdictional choice made by or imposed upon a debtor are in both cases enormous.
The Bankruptcy Reform Act of 1994 is the most significant change in American bankruptcy legislation since the 1978 Act according to the "Nolo website". The 1994 Act, signed into law by President Clinton on October 22, 1994, contains provisions affecting business and personal bankruptcy laws. The 1994 act also created the National Bankruptcy Commission to continue looking into needed changes in bankruptcy law.
The Amendments should expedite the administration of cases. They should also contain important revisions designed to afford consumers with more protection regarding their principal residence, collecting alimony and child support, and unscrupulous bankruptcy petition preparers.
The Bankruptcy and Abuse Prevention Act of 2003 presumes abuse based on the debtor's financial means. There is a three-prong test for an automatic presumption of abuse. If the monthly income reduced by expenses and multiplied by 60 is not less than the lesser of either the greatest of 25 percent of general unsecured claims, or $6,000 or $10,000. (Peter ,2002)
For banks and credit card companies, the measure could mean millions of dollars in recovered assets. But critics worry that the broadly worded bill would punish not just deadbeat debtors, but families pushed into bankruptcy through no fault of their own. Personal bankruptcy filings have doubled in the past decade, to more than 1.6 million cases last year. The bill now under debate would require tens of thousands of people who seek bankruptcy protection to repay at least part of what they owe and make it harder for them to wipe away their debts. Supporters say people looking for a quick fix for their financial woes have abused the bankruptcy system. Opponents say the bill will do little but increase consumers' misery without closing the bankruptcy loopholes available to corporations and wealthy debtors.
To argue for the legalization of bankruptcy contracts is implicitly to assume that bankruptcy systems exist only to increase efficiency. This is because contracts that maximize creditors' expected returns may slight the interests of other constitutuencies. Many American commentators argue that bankruptcy systems also should protect persons or entities that do not have current claims against the insolvent firm. In the literature, protected classes include workers with an interest in continued employment and local communities that benefit from the firm's continued presence. These commentators are willing to sacrifice bankruptcy value to advance the interests of workers and communities.( Senior Mag ,2005 ) This essay's second claim, however, is that bankruptcy law should function only to facilitate the access of firms to debt capital. Bankruptcy systems cannot protect employees or communities effectively.
In the debate about the goals of bankruptcy systems, we may distinguish ...Show more


Concrete systems of law conclude cultural varieties of the societies in which they operate. For instance UK is considered to be creditor-friendly authority for it floats for mandatory commence insolvency that allows providers of finance to keep them aloof from the consequences of a debtor's collapse knows nothing of debtor in possession …
Author : jschmeler
EU and US Bankruptcy Law essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"EU and US Bankruptcy Law"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

EU law
Under the EU law, a “direct effect” action is available for union citizen. Direct effect is a principle under EU law by which Union Citizens can bring action within their own Member State instead of as above whether or not the Member State has transposed the directive into its national law.
7 pages (1750 words) Essay
EU Law
The big question nowadays in Europe is that who actually has the power in the EU triangle? European commission, the council of ministers or European parliament (EP) in the European Union?
9 pages (2250 words) Essay
EU law
Finally, the paper provides a description of the actions that can be taken against the member countries of the European Union in ensuring that they do not breach the union’s laws. Introduction Businesses and individuals have been offered a variety of mechanisms and laws for ensuring that their rights are respected at their nation’s level.
3 pages (750 words) Essay
According to Article 101 of the Treaty of European Union, there is a duty imposed in every Member State to adopt necessary evaluations and regulations in order to make sure that provisions in the Treaty are well imposed along with the incidental duty of avoiding any acts and implementing any laws that will jeopardize the realization of the objectives of the Treaty.
6 pages (1500 words) Essay
Law essay about Bankruptcy
First is the debtor. The debtor is a person or entity owing the money. It is the party that files for a bankruptcy relief. The other one is the creditor. It is a party or a company owed by the debtor and is claiming that the debts are due to them by the debtor.
7 pages (1750 words) Essay
Bankruptcy Law
She has accrued about $75,000 in debt and is unable to pay her creditors. She has decided to file for bankruptcy so she can settle up with his creditors and move on to another, hopefully more profitable, business. Chapter 7, 11, and 13 are specific types of bankruptcy that can be declared by an individual or a business.
2 pages (500 words) Essay
And there can be no talk of an 'island', either, for this is a cross-border, joint meeting of SUERF and the CFS. Incidentally, the motive is the exchange of knowledge with the financial community including central banks, thus avoiding all suspicion of insular ivory-tower erudition.
17 pages (4250 words) Essay
Eu law
Within the EU this right encompasses the free movement of workers between the various Member States. Regulation 1612/68 and the Treaty of Rome provide workers in the EU with the right to free movement.1 Subsequently, several treaty amendments were
4 pages (1000 words) Essay
Ophthalamic Disorders Case Study
The eye is an extremely sensitive organ in the body. There are very many threats and issues that create a highly hostile environment for the eye and its functions. Some of these threats may be hereditary, environmental, genetic and even as a result of various types of physical injuries (Besharse, 2011).
2 pages (500 words) Essay
These are found in Article 288 of the Treaty on the Functioning of the European Union (TFEU): “A directive shall be obligatory, to the expectedoutcome, upon each member state to which it
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us