The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) requires that debtors filing for bankruptcy whose monthly income exceeds the median income for their household size in their state use the IRS expense standards rather than their current expenses to calculate their monthly disposable income (MDI).
1 “We Didn’t Know” Is No Excuse. By “payment,” we mean generally the process by which a debtor
discharges indebtedness to a creditor. Of course, a payment can be used for family, charitable, or other strictly consumer purposes, but this book is about business uses.
This book is designed to provide a broad range of guidance on the tax aspects of
decisions that must be made by companies in financial trouble. It will be useful
to financial advisors, accountants, lawyers, trustees, turnaround professionals,
examiners, creditors, bankruptcy judges, and debtors-in-possession.
The tax provisions of the Internal Revenue Code (I.R.C.) and the Bankruptcy
Code applicable to businesses that have filed a chapter 7 or a chapter 11 bank-
ruptcy petition are discussed in detail. Also explained are the provisions of the
debtor and its creditors.
Reoffering yield In a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds to investors.
Reopen an issue The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue. Reorganization Creating a plan to restructure a debtor's business and restore its financial health.
Replacement cost Cost to replace a firm's assets.
Replacement cycle The frequency with which an asset is replaced by an equivalent asset. Replacement value Current cost of replacing the firm's assets.
In 1978, when the last pages of Age of Inflation were penned, the annual inflation rate was on the rise. It peaked in 1980 at 13.58%, before declining to a low in 1998 of 1.55%. Today, inflation is on the rise again, but this time, the U.S. has new problems as the world's largest debtor. A new generation must cope with the ageless problem called inflation. The answers are different from those that worked during the early 1980's. To understand today's problems and solutions, see Age of Inflation Continued....
Premium bond A bond that is selling for more than its par value.
Prepackaged bankruptcy A bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along with the bankruptcy petition. Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.
Prepayments Payments made in excess of scheduled mortgage principal repayments.
Parts of a Spending Plan How Many Categories Do You Need? How to Accrue in Categories Tracking Sporadic Income Split Transactions Split Transactions with Both Inflows and Outflows Bank Reconciliation is Essential Three Important Concepts Steps to Reconciling with Your Bank Account Month End & Month Beginning 2013 Taxes Already?! How to Start a New Year in YNAB SECTION 7: USING MONEY SANELY Pressure Relief Group (PRG) Living in the Next Month Willingness and Delayed Gratification Depriver or Spender When is Enough Enough? Giving Gifts Receiving Gifts Lending Money The Conundrum of Cash Blac...
Citing the Fair Debt Collection Practices Act
(FDCPA), attorneys allegedly representing credit card holders submitted letters
to financial institutions demanding that the institutions cease communication
with the accountholders, including phone calls to accountholders and
communications that involved the transmittal of monthly statements, annual
privacy notices, change in terms notices, and collection letters.
The reverse is true of collection agencies, which provide information to the repositories,
but do not use credit data to evaluate consumer creditworthiness, although they may use
information in credit reports to locate debtors. Repositories also obtain information by
requesting it from public records and government entities and when certain government
entities report directly to the repositories, such as for delinquent child or family support
payments, unpaid parking tickets, or overpayments of unemployment benefits.
Certain developing countries and certain developed countries are especially large debtors to commercial banks and foreign
governments. Investment in debt obligations ("Sovereign Debt") issued or guaranteed by governments or their agencies ("governmental
entities") of such countries involves a high degree of risk. The governmental entity that controls the repayment of Sovereign Debt may
not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt.
Governmental entities may also be dependent on expected disbursements from foreign governments, multilateral agencies and others
abroad to reduce principal and interest arrearage on their debt. The commitment on the part of these governments, agencies and others
to make such disbursements may be conditioned on a governmental entity's implementation of economic reforms and/or economic
performance and the timely service of such debtor's obligations.
My dear Mr. Ruskin,--You have given me very great pleasure by allowing me to inscribe this book to you,
and for two reasons; for I have two kinds of acknowledgment that I wish to make to you--first, that of an
intellectual debtor to a public teacher; secondly, that of a private friend to the kindest of private friends. The
tribute I have to offer you is, it is true, a small one; and it is possibly more blessed for me to give than it is for
you to receive it. In so far, at least, as I represent any influence of yours, you may...
Bonds are securities that establish a creditor relationship between the purchaser (creditor) and the
issuer (debtor). The issuer receives a certain amount of money in return for the bond, and is
obligated to repay the principal at the end of the lifetime of the bond (maturity). Typically, bonds
also require coupon or interest payments. Since all these payments are determined as part of the
contracts, bonds are also called fixed income securities.
A straight bond is one where the purchaser pays a fixed amount of money to buy the bond.
The unified procedure reduces the ex ante costs of choosing one procedure
over the other as well as the ex post costs of shifting from one procedure to the
other in case wrong procedure was chosen. The reform also introduced a
number of new systems into the rehabilitation proceeding, such as
comprehensive stay order, absentee voting, etc. Moreover, basic ideas of
debtor-in-possession (“DIP”) are incorporated into the receiver system, and
secured and unsecured creditors are guaranteed the liquidation value of their
collateral and the corporate value.
who went to the same school, and was only a year older. Maria had made sure that he was there, by a glance, directly after she had entered, then she never glanced at him again, but she wove him into her dreams along with the sweetness of the midsummer night, and the
The most gratifying aspect of finishing a book is the opportunity for the author—or
authors in our case—to express thanks to those individuals and institutions that assisted
in the endeavor. If writing a book can be compared to indentured servitude, then all
authors are perpetual debtors. Our bills are long overdue and our list of collectors long.
Both authors are grateful to the management, administrators, and staff of the James V.
After the discoverers and explorers of the sixteenth century came (chiefly in the seventeenth) the founders of
settlements that grew into States--French Huguenots in Florida and Carolina; Spaniards in St. Augustine;
English Protestants in Virginia and Massachusetts; Dutch and English in New York; Swedes in New Jersey
and Delaware; Catholic English in Maryland; Quaker English and Germans in Pennsylvania; Germans and
Scotch-Irish in Carolina; French Catholics in Louisiana; Oglethorpe's debtors in Georgia.
Chapter 29 provides knowledge of security interests in personal property. After studying this chapter you will be able to: Describe types of collateral for a security interest under UCC Article 9, explain how to create and perfect a security interest in debtor’s property, recall priority rules for security interests, list steps creditor can take if debtor defaults.