Bankruptcy Research Paper Example | Topics and Well Written Essays - 2250 words

Bankruptcy - Research Paper Example At times, due to poor planning or other reasons, debtors are unable to plan their financial transactions well, leading to an inability to honor their credits.Such insolvency or an inability to repay the creditors is known as â€Å"bankruptcy† (Newton 134). It is for times like these that bankruptcy laws have been instituted. Since the nineteenth century, bankruptcy laws have been continually formulated and improved with an insight not to discourage entrepreneurship in the region. There were three brief periods in which federal bankruptcy laws were implemented in the United States. The first bankruptcy law was enacted in the 1800 called the â€Å"Bankruptcy Act of 1800† which was aimed to handle the situation of involuntary bankruptcy of traders (Hansen). During this period, the request for bankruptcy could be initiated by the creditor. This law was modeled after the English bankruptcy law. This law was abused by several debtors calling for â€Å"friendly† credito r initiations. Thus this law was repealed in 1803 (Skeel). After a long gap since 1803, the next bankruptcy law was passed in 1841 titled â€Å"Bankruptcy Act of 1841†. In the meanwhile, states were following their own bankruptcy systems without the presence of a formal federal law. This act allowed the debtors to voluntarily file for bankruptcy and receive discharge of debt. Following this law, debtors continually opted for discharge of debt and the creditors were faced with immense problems. Therefore this law was also repealed within two years in 1843 (Skeel) on accounts of being abused and being oppressive for the creditors. It is important to notice that laws pertaining to debtor-creditor settlements have been important and their formulation has been exceptionally problematic. If lenient laws were inculcated in the favor of debtors like the Bankruptcy Act of 1841, it posed risks and threats to the creditors and would have eventually led into the decrease of credit and ul timately affected commerce industry and economy. On the other hand, if too strict laws were enacted as were previously done – imprisonment to coerce payment of debt – it would discourage entrepreneurial ventures and experimentation on behalf of existing businesspeople. This means that failures which were converted into huge successes gradually would never have survived the law system (Hansen). Thus striking the balance between the debtor and creditor rights without discouraging either has evolved over a century of deliberations. After the Bankruptcy Act of 1841 which was repealed in 1843, the country was distraught with the occurrence of the American Civil War of 1861. The northern ‘union’ and the southern ‘confederate states of America’ fought a bloody combat for four years which left most of the Southern America and their infrastructure destroyed (McPherson). The financial distress caused by the Civil War fueled the demand for the formulatio n of another bankruptcy law. The next bankruptcy law was enacted in 1867 immediately after the end of the Civil War. The law was titled â€Å"Bankruptcy Act of 1867†. This law was longer lived than the previous laws but was nevertheless repealed in 1878 after 11 years of amendments and replacements. Bankruptcy Act of 1867 was more detailed and covered several situations. For the first time it was allowed voluntary bankruptcies for all individuals and not only traders and merchants

Mortgage Essay Example | Topics and Well Written Essays - 1000 words

Mortgage - Essay Example If the lender brings a court action for possession of property, which consists of or includes a dwelling house, the mortgagor could obtain longer to repay by asking the Court to delay possession. The court has both an inherent and a statutory jurisdiction to delay possession. Using its inherent jurisdiction. In Birmingham permanent building society v Caunt the court grant a 28 days short delay to enable the Borrower to repay in full the sums owing. In Abbey National Building Society v Cann2 An aunt acquired rights in property owned by her nephew, through her rights under the 'right to buy' legislation. She was on holiday on the actual date of moving. However, her belongings were moved by removal men. The actual move started some 35 minutes before completion and some of her furniture was moved into the premises. The court decided that this was insufficient for her to claim that she was in actual occupation. In Lloyds Bank v Rosset3 a husband and wife, recently married, decided to purchase a semi-derelict property. They could not move in until a certain amount of renovation work had been done and much of it was supervised the wife. The work was still in progress after the transfer but the issue was whether the wife could be in actual occupation when she was not in permanent occupation. She had spent a considerable amount of time at the property but could not be said to be in permanent occupation. The builders were working at the premises permanently. Although the court accepted that it was not necessary for the wife to be living there, it drew a distinction between intending to move in and actually living in the premises. The builders were held not to be in actual occupation on behalf of Mrs. Rosset. In Chhokar v Chhokar4 a married couple split up. The wife remained in the property but had to leave when she had to go to hospital to have a baby. It was held that this did not constitute a break in actual occupation. The case suggests that brief absences will not interfere with actual occupation of land. So in order to get right of possession in case of actual occupation must be proved. b) The mortgagee has a right to sell the property without; a court order once the Conditions in SS. 101 and 103 Law of property Act 1925 are fulfilled. Discuss the Sections briefly and co-relate with the given set of facts. For a long time, it has been established that the mortgagee need not wait until the Market is favorable before exercising the power of sale (Warner Vs Jacob). Indeed, Provided the power to sale is exercisable, the mortgagee cold sell the property at the least advantageous time for the mortgagor (Duke v Robson). In the aftermath of Cuckmere, it was thought to be arguable, that it might be the case that the mortgage should exercise reasonable care as to when the property is out onto the market. This Argument was rejected, however, in China and south sea bank Ltd Vs Tan soon Gin, Where the privy council held that a mortgagee could not be liable for failing to Exercise its power of sale when market conditions were ore favorable than they Subsequently became, as the timing of the sale was a matter entirely for the Mortgagee. This has recently been confirmed in Silven properties Ltd Vs Royal Bank of