Tuesday, June 22, 2010

Do I Qualify for Personal Bankruptcy in Detroit?

Bankruptcy advice
Chapter 7, otherwise known as liquidation bankruptcy, is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations, and partnerships. In Chapter 7, a trustee who is appointed by the court gathers and sells your non-exempt property and uses the proceeds from the sale to pay your creditors.

Most chapter 7 cases are no-asset cases. This means that you do not have any non-exempt property for the trustee to sell.

To undergo a personal bankruptcy via Chapter 7 in Detroit, contact the Detroit bankruptcy attorneys for federal bankruptcy laws detail a means test that determines whether you are eligible for Detroit bankruptcy filing. If your income is below the median income for families in Michigan, based on U.S. Census Bureau statistics, you are eligible. If you make more than the median income for families in Michigan, your income over the past six months is considered, along with mortgage and car payments, back taxes and child support due, and school expenses up to $1,650 per year.

If you do not qualify for a Chapter 7 bankruptcy, your only option would be a Chapter 13 bankruptcy.

Steps to filing bankruptcy
For Chapter 7, a bankruptcy starts with the filing of the official petition, schedules, and a statement of financial affairs with the bankruptcy court. You must provide a list of all of your creditors and the amount and type of their claim as well as the source, amount, and the frequency of your income. As part of your Detroit bankruptcy filing, you need a list of all of your property and a list of your monthly living expenses. As soon as you file bankruptcy in Detroit, your creditors are prevented from trying to collect on your debts through what is called an automatic stay.

Seek out bankruptcy help
As part of the bankruptcy process you need to prepare many forms to be filed with local courts in accordance with their rules. You would be wise to contact an attorney for Detroit bankruptcy advice and help. Your lawyer can ensure that you have met all the requirements for filing deadlines and information. Detroit worker comp lawyers can help you with all aspects of bankruptcy.

Thursday, June 10, 2010

The History of Business Courts

The history of business courts varies greatly from state to state. Not all states have business courts and many have their own business courts history.

Proposed reason for business courts in California
The Ad Hoc Committee of the California Bar beginning in 1990 piloted a study to determine whether to implement business courts in California. The idea of establishing business courts was for the purpose of handling complex business cases with greater efficiency and less time consuming efforts resulting in faster resolution of complex commercial cases. This study culminated in 1997 based on a recommendation from the Business Court Study Task Force advising against the use business courts. The reason given was a lack of viable support for business courts to succeed. More specifically, in 1993, the California State Board Bar of Governors passed a resolution to block legislation establishing specialized courts for business cases, reasoning that such courts would unjustly favor business interests and draw the best judges and resources away from other types of cases. The Business Lawyer Vol. 60, November 2004.

Complex Civil Litigation Pilot Program
However, efforts continued to devise ways to improve management of California complex business cases. The Bar Judicial Counsel in 2000 established complex case management programs in six California Superior Courts which focused on improving the quality of judicial management so complex cases could be resolved more quickly, costs kept down, and effective decision making could occur.

Out of this program emerged legal clarification that defined complex business cases. Guidelines to determine whether or not a case is complex include:
  • The number of pretrial motions
  • Number of witnesses
  • Separately represented parties
  • Coordination necessary between courts in other counties, states, or countries
  • Degree of post judgment judicial supervision required

Provisionally complex cases based on the inherent nature of the case, include:
  • Antitrust/trade regulation claims
  • Construction defect claims
  • Securities/investment losses involving many parties
  • Environmental/toxic torts involving many parties
  • Mass tort claims
  • Class actions
  • Insurance claims arising out of the above
California Court Rule 1800 determined that, in general, complex cases required exceptional judicial management to avoid placing unnecessary burdens on the courts or litigants.
For more information about how complex business cases are handled in California, speak with an Orange County business lawyer.