Scandals involving Central Banks & Bank Corrupcy

Microfinance or ‘micro-corrupt bank,’ CBN urged to differentiate

2009-11-07T02:52:00.007-08:00

Judging by growing allegations of illegal microfinance banks in the country, the regulatory body of the microfinance sub-sector, which is the Central Bank of Nigeria (CBN), had been called upon to act fast in order to checkmate the activities of these operators. According to reported cases, illegal microfinance banks are on the rise, and innocent people meant to benefit from the services of these microfinance banks are now victims of fraud.
In addition, there are cases of other licensed banks closing down due to mismanagement of funds. For instance, PS Microfinance Bank, located at Ayo-Alabi Street, Oke-Ira, Ogba, was one of the illegal microfinance banks discovered to have embezzled millions of naira belonging to traders in Akute area of Lagos.
The victims include, Helen Eboh, Abdul hammed, a woman named Anifowose, and an old who claimed to have contributed over N100, 000 in the said bank, all described the experience as a painful one.
Another incidence occurred at the Almond Microfinance Bank Limited, located at Ijaniki area of Lagos, which closed down recently due to ‘insider-related abuses and poor corporate governance,’ which also embezzled millions of naira contributed by the downtrodden.
Some operators have however attributed the crisis to high profile lending, poor management, and corporate governance.
Nwankwo Martin, managing director and chief executive officer, Ikorodu Division Microfinance Bank Limited, Lagos, admitted that microfinance scheme should be the vehicle for developmental enhancement as seen in other countries, but in Nigeria, some individuals who consider themselves as smart always look for ways of turning things around in a negative way, which he said ought not to be.
“That is why we are witnessing some MFBs getting into problems today, even some big ones that are least expected. Some engage in high profile lending to make quick money. They live flamboyant lifestyles, with big buildings, and attractive vehicles. So that is where they missed it, and are having problems today,” he said.
However, Olufemi Fabamwo, acting director, Other Financial Institutions Department, CBN, proved ignorant of the closure of these microfinance banks, but made it clear to journalists during a meeting of the Committee Of Microfinance Banks in Nigeria (COMBIN), Lagos zone, which held recently that the regulatory body had already given out circulars to microfinance banks to display their licence in their various banking premises, so that members of the public would be able to know those that are licensed.
“We have already given out circulars to microfinance banks to display their licences in their banking premises, so that members of the public, who might want to do business with them would be able to discern and see. This would serve as notice to members of the public also to always ensure that they see a CBN licence or a letter granting final licence to MFBs before they transact any business with them. I think that is very important.”
For other illegal operators, however, Fabamwo stressed that as soon as information gets to them, they would be apprehended and handed over to appropriate law enforcement agency.
“It is a concerted effort; we need members of the public to help us to identify them. We are only a few hundreds of people, so members of the public can also help in fishing them out. Once they see any bank practising without licence, or did not display it, they should alert us immediately, so that we can hand them over to law enforcement agents.”
To further substantiate its intention, the CBN promised to publish names of licensed microfinance banks in order for the public to know those who are genuine and being supervised by CBN.
“Again, we also want to publish the list of licensed microfinance banks, so that members of public will be aware that these are being supervised by the central bank. But some of them are not literate enough or are not well to do enough to buy newspapers; hopefully, we will also do some jingles to advise them on what to do,” he said.

World Bank sanctions Lahmeyer International for corrupt activities in bank-financed projects

2009-11-07T02:52:00.003-08:00

M2 PRESSWIRE-6 November 2006-WORLD BANK: World Bank sanctions Lahmeyer International for corrupt activities in bank-financed projects(C)1994-2006 M2 COMMUNICATIONS LTD

RDATE:06112006

PRETORIA, South Africa - The World Bank has declared Lahmeyer International GmbH (Lahmeyer), a German company, ineligible to be awarded Bank-financed contracts for a period of seven years, because of corrupt activities in connection with the Lesotho Highlands Water Project (LHWP).

The period of ineligibility may be reduced by four years if the Bank determines that Lahmeyer has met ...

will bank corrupcy in US create any problems for PR application

2009-11-07T02:51:00.005-08:00

Hi Friends,

I recently applied for canadain PR.

I have a question related to bank corruption.

If i did bank corrupcy then will it create any problems for my canada PR application in any stage.

Please give your opinions about this.

Thanks

IS FORECLOSURE SAME AS BANK CORRUPCY???

2009-11-07T02:51:00.001-08:00

In Reply to: IS FORECLOSURE SAME AS BANK CORRUPCY??? posted by MATHEWS on August 23, 2007 at 20:39:20:

Foreclosure is the process used by a lender once you stop making the required mortgage payments. The lender forecloses, and proceeds to take the house you gave as collateral for a loan. The process differs from state to state.

Bankruptcy is court ordered control of your finances and assets to determine which of your debts are repayable, which debts are dischargable, and how to assure maximum repayment to the creditors.

Many people whose mortgages are foreclosed upon seek bankruptcy relief, which may enable them to keep their home via a court ordered repayment plan, or to simply walk away.

Your question indicates you need some sound, professional advice... not just message board suggestions.

Make an appointment and speak withg a HUD approved credit counselor which should help point you in the right direction.

The Corrupt Origins of Central Banking

2009-11-07T02:50:00.003-08:00

Mises Daily: Wednesday, November 05, 2008 by Thomas J. DiLorenzo

First Bank of the United States, Philadelphia, 1791Central banking has been a corrupt, mercantilist scheme and an engine of corporate welfare from its very beginning in the late 18th century. The first central bank, the Bank of North America, was "driven through the Continental Congress by [congressman and financier] Robert Morris in the Spring of 1781," wrote Murray Rothbard in The Mystery of Banking (p. 191). The Philadelphia businessman Morris had been a defense contractor during the Revolutionary War who "siphoned off millions from the public treasury into contracts to his own … firm and to those of his associates." He was also "leader of the powerful Nationalist forces" in the new country.

The main objective of the Nationalists, who were also known as Federalists, was essentially to establish an American version of the British mercantilist system, the very system that the Revolution had been fought against. Indeed, it was this system that the ancestors of the Revolutionaries had fled from when they came to America. As Rothbard explained, their aim was

To reimpose in the new United States a system of mercantilism and big government similar to that in Great Britain, against which the colonists had rebelled. The object was to have a strong central government, particularly a strong president or king as chief executive, built up by high taxes and heavy public debt. The strong government was to impose high tariffs to subsidize domestic manufacturers, develop a big navy to open up and subsidize foreign markets for American exports, and launch a massive system of internal public works. In short, the United States was to have a British system without Great Britain. (p. 192)

An important part of the "Morris scheme," as Rothbard called it, was "to organize and head a central bank, to provide cheap credit and expanded money for himself and his allies. The … Bank of North America was deliberately modeled after the Bank of England." The Bank was given a monopoly privilege of its notes being receivable in all tax payments to state and federal government, and no other banks were permitted to operate in the country. It "graciously agreed to lend most of its newly created money to the federal government," wrote Rothbard, and "the hapless taxpayers would have to pay the Bank principal and interest."

Despite these monopolistic privileges, a lack of public confidence in the Bank's inflated notes led to their depreciation and the Bank was privatized by the end of 1783. But Morris did not give up on his scheme. He recruited a young Alexander Hamilton to serve more or less as his political puppet within the Washington administration. (Rothbard called Hamilton "Morris's youthful disciple.") In fact, the reason why Hamilton became Treasury secretary, despite having no reputation at all in the field of finance, was the recommendation by Morris to George Washington. (During the Revolutionary War, when he was an aide to Washington, Hamilton took the time to write Morris a 30-page letter proclaiming that he agreed with every one of his ideas about protectionist tariffs, corporate subsidies, and a government-run bank to finance them.)

Morris and his fellow Nationalists wanted a king-like chief executive who would rule over a mercantilist empire, just as the king of England ruled over his mercantilist empire. They, of course, would be the ones to advise and instruct the "king" and benefit financially from such an empire. So their young protégé Hamilton commenced his seven-year crusade to overthrow the first US constitution — the Articles of Confederation — by calling for a new constitutional convention to supposedly "revise" the Articles of Confederation. At the convention, Hamilton laid out his (really Morris's) plan: a permanent president who would appoint all the governors and who would have veto power over all state legislation. Under such a plan, state sovereignty would have been destroyed, and there would have been no escape from the central government's high taxes, protectionist tariffs, heavy debt, and foreign-policy imperialism — the agenda of the Nationalists.

The Hamilton/Morris plan was defeated, of course, as was the proposal made at the convention to include a central bank among the delegated powers to the federal government. But the government was more highly centralized, as "the Nationalist forces pushed through a new Constitution" and "were on their way to re-establishing the mercantilist and statist British model…" (p. 193). They begrudgingly acquiesced in a Bill of Rights in return for the anti-Federalists' support for the new Constitution. And most importantly, writes Rothbard,

A critical part of their program was put through in 1791 by their leader, Secretary of the Treasury, Alexander Hamilton, a disciple of Robert Morris. Hamilton put through Congress the First Bank of the…. United States…. modeled after the old Bank of North America [whose]….longtime president and former partner of Robert Morris, Thomas Willing of Philadelphia, was made president of the New Bank.

In making his case to President Washington for the constitutionality of a central bank, which had been explicitly rejected at the constitutional convention, Hamilton invented the idea of "implied powers" of the Constitution. These were "powers" that were not expressly delegated to the federal government in the document, but could be "implied" by clever lawyers like Hamilton. This of course became a roadmap for the total destruction of constitutional limitations on the powers of the federal government.

$26
The First Bank of the United States "promptly fulfilled its inflationary potential," Rothbard writes in his History of Money and Banking in the United States (p. 69). It issued millions of dollars in paper money and demand deposits "pyramiding on top of $2 million in specie." The Bank invested heavily in the US government, and "The result of the outpouring of credit and paper money by the new Bank of the United States was … an increase [in prices] of 72 percent" from 1791–1796.

Northern merchants provided the main political support for Hamilton's Bank, whereas southern politicians like Jefferson supplied most of the opposition to it, seeing it as nothing more than a vehicle for financing an American version of the corrupt British mercantilist system, which would be destructive of liberty and prosperity. They were right, of course, and remain right to this day.

The Real Story of Money

2009-11-07T02:49:00.001-08:00

by Loren Howe

“It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” - Henry Ford

“our citizens, their property and their labor, (are) passive victims to the swindling tricks of bankers and mountebankers." -Thomas Jefferson

You may have heard these quotes before, but have you truly considered what is being claimed? Were Henry Ford and Thomas Jefferson paranoid crackpots? Or perhaps, were they simply more aware than the average citizen? It’s an important question, not only from an historical perspective, but in direct relation to your personal wealth and freedom.

Few people understand the true nature of money and finance, and for that very reason, few people are able to gain or maintain wealth today. Instead, the average American lives in a state of servitude to a mortgage, taxes, and a job. At any moment, everything can be taken away if a constant cash flow is not paid. The middle class’ current situation is not very different from historical serfs or indentured servants. How did this happen and who is the beneficiary?

Look at the tallest buildings in any city or town throughout history. They always belong to the ruling class. Today, the skyline of most large cities is dominated by banks. Incredibly, all of this wealth was basically created out of nothing. That’s right, our enormous financial industry, which rules the country economically, has arguably never made a single product of value. Just remember, when nothing is created there must be a loser for every winner. The loser in this case has been the average American. Without even knowing it, the middle class has had its prosperity and freedom siphoned away to support the financial establishment.

I’ll try to give as simple an overview as possible for this purposefully complex system of wealth transference.

Today we refer to America’s Central Bank as the “Federal Reserve” because the name Central Bank had a bad connotation from experiences in Europe. The Central Bank is basically a quasi-government agency which takes its direction from consensus within both the Federal Government and the financial industry which it was created to serve. Regardless of who controls the Central Bank, its purpose is fairly straightforward once you cut through the opaque language and theory with which it disguises itself. The Federal Reserve/Central Bank’s overriding purpose is to create ever greater quantities of currency and inflation.

The creation of controlled inflation has proven immeasurably valuable to the banking industry and Federal Government at the expense of the American people.

First, how does the Central Bank create currency? Basically it just prints (or types into a computer) as much new currency as it wants. This currency is then “lent” out to the banking industry and the Federal Government. When these loans are repaid to the Central Bank, the money is just lent out again along with even more newly created currency.

A simplified example can help illustrate this purposefully complex process. One day the Central Bank may create $1,000,000,000 out of thin air. This $1,000,000,000 is then lent to a commercial bank (let’s call it Local Bank), at the Central Bank’s loan rate of say 5% annual interest on a one year loan. In turn, Local Bank loans the $1,000,000,000 to area businesses at a rate of 8% interest on one year loans. Ideally, at the end of the year, the business loans are repaid to Local Bank at a value of $1,080,000,000. Local Bank must now repay its loan from the Central Bank, which is $1,050,000,000 including interest. That leaves Local Bank a profit of about $30,000,000. Not bad for having produced nothing.

As you can see, this system insures profit for Local Bank regardless of inflation. Imagine an individual trying to lend money in competition with Local Bank. The wealthy person would lend his $1,000,000,000 at 8% interest and get a profit of around $80,000,000. Next the wealthy person, just like Local Bank, would subtract out taxes for a final profit rate of maybe 5%. So far so good right? The problem is, if inflation is greater than 5% then the wealthy person is losing money. If inflation gets extremely high at some point, then the wealthy person will be wiped out and quit the loan business. Local Bank, on the other hand, doesn’t have to worry about inflation. Local Bank is not using its own money. It is just playing with, and then repaying, the Central Bank’s money which was created out of nothing. After a while under this system, banks which are granted access to Central Bank funds are left as the only viable lenders. These banks are insured a virtual monopoly on the money loaning industry.

But that’s only half of the story. Part of the genius of the Central Bank system was that it also aided big government and the politically connected. This assured that big government would become dependent on the system and unable to change it.

First, the government takes “loans” directly from the Federal Reserve Central Bank but with one critical difference. The Central Bank gives back the interest “paid” on the loan. This is a convoluted way for the government to obtain perpetual zero interest loans – more correctly called free money. As if that were not enough, the US Treasury is also given the Federal Reserve’s interest charged to commercial banks on the money created out of thin air. This practice of giving the Central Bank’s interest to the government basically insures that all inflation on all money in existence is split as profit between both the government and the commercial banks. These benefits alone transfer a vast and well-hidden source of income to the government.

A simpler way for the government to achieve exactly the same result would be for the Treasury Department to print itself free money every year. However, this method would be more straightforward and citizens would intuitively realize that the resultant inflation robbed them of their savings and earning power. Secondly, this method of printing free government income would not allow commercial banks to also skim their percentage of the inflating money supply.

The government’s free benefits don’t end there, however. Next, as the currency inflates, the government’s zero interest debt obligation is gradually erased. This debt is continually rolled over and eventually inflates away to nothing.

Lastly, the government gains enormously in one more hidden way. Taxes on the public's savings are based on the imaginary “gain” from inflation. If a person owned a home or gold under a stable currency, the value would remain relatively constant. Under an inflating currency, however, the government is able to tax the “gain” on savings as their cost in dollars rises every year. Basically this amounts to a well-hidden tax on only those Americans who save money. The more you save, the more you are taxed. Is it any wonder our savings rate is now negative and the general population looks to the government rather than savings in difficult times?

Individuals under a Central Banking system have less money available for large purchases and must take out loans for nearly everything. The net result is an ever growing number of people who need loans in place of savings, and a banking industry with a virtual monopoly in issuing these loans. This system has fueled the financial industry’s immense profits without production.

The system of currency inflation being created, skimmed, and kept by banks and government may seem subtle. Some people don’t realize the damage done. Try to view the most simplified form. This process is the same as a counterfeiter printing money and earning a free living without producing anything. Imagine the simplified economy of a small town with it’s own currency. Imagine the town has all the normal industries plus a counterfeiter who can print as much free money as he likes. Guess what? First the value of the townspeople’s savings will be eaten up by inflated counterfeit currency. Next the counterfeiter will buy up all the valuable goods from the town’s producers. The working townspeople will have to work even harder to try to buy what’s left. But the harder they work and the more they produce, the more the counterfeiter can buy. Ultimately, the counterfeiter will be left as the only person in town with wealth. He will then have ultimate control over the town newspaper and government. It will become difficult to educate anyone or pass a law against counterfeiting. Unless the townspeople learn a method of personal or collective escape, they will be left in a state of servitude to the counterfeiter.

So there you have it. After less than a century under the present incarnation of this Central Banking system, we now have a middle class deeply in debt, a negative savings rate, an enormous but often unproductive government, and a wholly unproductive financial industry. What's more, our government has been in increasing stages of financial default for the last two generations and can no longer honor its previous pledges to redeem currency in gold or anything of value. Most amazingly, the entire structure of wealth transference was so well hidden and self-fulfilling, that few individuals grasp what is occurring or the negative impacts to society.

Before you get too depressed or angry about the situation however, it is important to remember one thing. Once you understand the system you can become wealthy.

Escape from theft will only hasten any parasitic system’s collapse. Communism, for example, wasn't defeated by a popular rebellion but by countless individuals gradually freeing themselves from economic exploitation until that system went broke. Once you understand how the Central Banking establishment operates, you can benefit immensely. There is not even a need to rally others towards a reform movement. You can simply watch your wealth and freedom grow while setting an example for others to follow.
The first questions I ask any investment (or other) advisor are about their success rate, training, and experience – so here is mine. I was fortunate, perhaps, to have no formal training in economics, and instead studied engineering. Everything I learned about money was self-taught and based on logic rather than economic theory. Over the last five years of investing I’ve averaged an annual rate of return over 20% and now have a net worth of around $2,000,000. What’s more, I’ve done this without a single day of debt and its associated anxiety.

In brief, to become wealthy you must first understand how the Central Bank robs your savings. Once you understand the multiple venues through which wealth is transferred to the banking establishment, you can cut off every one of them.

The next step is understanding and shielding yourself from conditioning by the press. Always remember, most “news” stories about investment are little more than paid advertisements initiated by press agents. Meaningless statements are repeated so often that they are taken as truth. For example, no one questions claims like, “the value of all stocks on the NYSE has increased 10,000% over the last 50 years” or, “the value of the Dow Jones Industrial Average has increased 5,000% over the last 50 years.” Yet, these are meaningless statements akin to saying, “the value of all houses in America has increased 10,000% in 50 years” or, “the value of the 30 biggest houses in America is now 5,000% greater than the value of the 30 biggest houses in 1950.” These misleading statements disregard the fact that houses are constantly being demolished and new ones built. If you had purchased a particular house 100 years ago it would likely be worthless rubble today, despite the fact that the average home is worth much more in inflated dollars. Looking past the financial industry's hype, stock analysis is an extremely complex field with an enormous number of variables. Let's try to simplify it. The fact is, nearly all corporations eventually go broke. If corporations didn't go broke the stock exchanges would be dominated by names like the British East India or Hudson Bay Company.

Popular investment “advice” generally leads people to take a gambler’s perspective. Experts herd investors into one sector or company this year and another next year - all the while stirring up commissions and giving the impression that investing is a fast paced and unpredictable field. Once you learn the basics of value investing and long term cycles, however, investing becomes much more of a science while retaining the potential for spectacular profit.

The final step in escaping financial exploitation is to understand the multiple ways in which brokers earn a living off of your savings. You gain little or nothing in return for paying a broker commission, so it is necessary to learn to minimize commissions and even outright broker theft whenever possible. After understanding and minimizing this last drag on wealth, you have achieved the basics of financial freedom.

In summary, most of us are born into an economic system stacked against us in ways which will never be advertised by the financial establishment. To gain real wealth, it is vital to understand the system. Knowledge and action can eventually give you an unimagined prosperity once your efforts are no longer subtly siphoned away by others. Hopefully this information will assist you in beginning or continuing to learn about a misunderstood topic - and eventually improving your life to enjoy the happy and fulfilling wealth and freedom which should be the birthright of everyone.

This article is condensed from, The Real Story of Money, Health, and Religion, by Loren Howe available in paperback or $1.25 download at http://www.lulu.com/content/592768

The Bank of England kept the hangman working day and night

2009-11-07T02:48:00.003-08:00

The philosophy of the Bank or any bank is: LET THE MONEY DO THE WORK. However, the bankers worked the hangman to death because forging the counterfeit money was punishable with death. Men and women by the hundreds were hanged and even after the repeal of the law, the punishment was exile for life to Australia. If thebankers had lived at the time of Edward VI, they would have been the ones behind bars!!

Secrets of the Bank of England Revealed at Last

2009-11-07T02:47:00.004-08:00

Give me control of a nation's money
and I care not who makes her laws"
Meyer Rothschild

The Jesuit founded Bank of England was the driving force behind the separation of England from her colonies in the New World:

"The American Revolution, like nearly all revolutions in history, was an uprising not against a king and his ministers, but against a system and a state of mind. Nor was the system the work of George III, Hillsborough, Townshend, or Lord North, for they were its products not its creators. It was the result of the Revolution of 1688, which gave power to the men of the landowning and monied classes of England. They, although they bore titles of nobility and constituted the county aristocracy, were of middle-class origin and under their rule were fashioned those rigid and sinister ideas of power and government which permeated the whole official world of king, ministries, parliament, council, departments, and boards, all having, to do with administration at home and abroad" (Andrews, Colonial Background of the American Revolution, p. 218).

King William of Orange (1650-1702). He chartered the usury Bank of England in 1694.

The Bank of England was chartered in 1694 in order to wrest the New World from the mother country and create a RIVAL power to Great Britain. This was to implement the Bull of Pope Alexander VI.

King William III (king from 1688 to 1702) was a moneychanger from Holland. During the reign of Queen Elizabeth I, England spent a hugh amount of money helping the Hollanders to throw off the Spanish yoke. Their reward was the Bank of Rome controlled William of Orange.

King William's wife, Queen Mary, died in 1694 the very year that the Bank was chartered. Was it another timely demise like King Henry VII??

The Bank of England's strategy was to completely control the British Government. Then they could apply pressure on the colonies and force them to rebel. Lastly, they would impose a Bank of England type bank on the Colonies. This they did in the year 1791. It was called the Bank of the "U.S." General Jackson refused to renew the bank charter and it died an unnatural death in1836. The corrupt bank was re-chartered in 1913 under the name

Swiss Banks To Reveal Secret Accounts

2009-11-07T02:47:00.003-08:00

Swiss Banks To Reveal Secret Accounts
by Hanson Okoh February 20, 2009

Nigerians with secret Swiss bank accounts may have to look elsewhere to stash their loot as previously inaccessible accounts in Switzerland are to be turned over to the American Government.

This followed an agreement by UBS, a Swiss bank, to pay $780 million and hand in secret Swiss bank records to settle allegations it conspired to defraud the United States Government of taxes owed by thousands of American clients.

Sources at the Justice Department said another part of the deal is for the Swiss authorities to also turn over the accounts of several people under investigation for financial irregularities, including Nigerian officials.

Government officials in Nigeria have for years found a safe haven in Swiss banks, among them the late Head of State, Sani Abacha.

Part of the millions of Dollars Abacha siphoned to Switzerland has been repatriated to Nigeria by the Swiss authorities.

Officials said the deal struck in a federal court in Fort Lauderdale, Florida, mandates UBS to immediately turn over to the U.S.Government account information for U.S.customers of the bank's cross-border business.

In doing so, the federal authorities have struck a big crack in Switzerland's trademark bank account secrecy.

"The Swiss are saying that this is the end of Swiss banking as they knew it," Jack Blum, an offshore tax specialist stated.

"Nobody will trust the security of the Swiss bank account again."

UBS will pay $780 million in fines, penalties, interest, and restitution for conspiring to create sham accounts to hide the assets of American clients.

"We accept full responsibility for these improper activities," Peter Kurer, Chairman of Swiss-based UBS AG, said in a statement.

Kurer added that the bank is determined to abide by the terms of the deal with U.S.criminal and securities officials.

Client confidentiality, to which UBS remains committed, was never designed to protect fraudulent acts or the identity of those clients, who, with the active assistance of bank personnel, misused the confidentiality protections, he stressed.

Approximately 17,000 American clients concealed their UBS accounts from the Internal Revenue Service (IRS), the U.S.tax-collection agency, hiding assets of roughly $20 billion in total, American officials said.

According to U.S.officials, when an acquisition in 2000 of a U.S.company brought UBS a host of new American clients, the bank set about to evade new reporting requirements for those clients.

To do so, UBS executives helped U.S.tax payers open new accounts in the names of sham entities.

Prosecutors contend that UBS executives used encrypted software and other counter surveillance techniques to prevent anyone from detecting that they were actively marketing such Swiss bank secrecy, and tax evasion, to American taxpayers.

The clients, in turn, filed false tax returns that omitted the income they earned in their Swiss accounts.

Federal officials said they have pulled aside a veil of secrecy that hid a corrupt international banking practice.

"This was not a mere compliance oversight, but rather a knowing crime motivated by greed and disrespect for the law," explained Alexander Acosta, U.S.attorney for southern Florida.

IRS Commissioner, Doug Shulman, warned U.S.tax payers hiding money overseas that it is time to come clean.

"People who have hidden unreported income offshore need to get right with their government.They should come forward and take advantage of our voluntary disclosure process," he counselled.

Democratic Senator Carl Levin has estimated that abusive tax shelters and hidden offshore accounts cost the U.S.Government nearly $100 billion a year in lost tax revenue.

Prosecutors still are hunting for UBS Executive, Raoul Weil, who was indicted in November last year on charges he conspired to defraud the government with his management of the bank's cross-border business.

In June last year, former UBS banker, Bradley Birkenfeld, pleaded guilty to a similar charge.

If UBS fails to turn over clients'information, or stops co-operating with the authorities, prosecutors could re-file charges against the bank.

Under the deal, UBS also will stop engaging in the type of cross-border banking business that got it into trouble.

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Corruption, an open secret in the Philippines

2009-11-07T02:46:00.001-08:00

The World Bank is on trial as frightened investors flee the country

By Joel Adriano, 25th February 2009
A recent World Bank report accuses many high-ranking officials in the Philippines of collusion. The government’s response demonstrates how everyone gets away with corruption in the country. Could this be at the root of the country’s competitiveness?

(From Manila) IN THE MUDDLED WORLD of Philippine politics, an investigation into alleged corruption charges can easily turn into a conversation about menopause.

Yet another corruption scandal has rocked the administration of Philippine President Gloria Arroyo: the World Bank has blacklisted seven firms – four Philippine construction companies and three Chinese firms – for alleged collusion in the bidding process for local road projects funded by the multilateral agency.

DODGING THE BRIBERY ISSUE
In the interest of safeguarding the money it loans, the Bank reviews reports of anomalies with due diligence. “The World Bank report implicates many high-ranking officials and personalities, including the president’s husband: Jose Miguel Arroyo” After an internal investigation, the Bank verified collusion and canceled its planned loan, revealing that the construction firms were part of a major cartel when they submitted bids for the first phase of the National Roads Improvement and Management Program (NRIMP-1), rigging them in their favor. The NRIMP was partially financed by a $150-million loan from the World Bank in 2000, and about 1,400 kilometers of roads bad been built or rehabilitated by the time it ended in March 2007. Phase 2, which is now underway, costs a total of $576.02 million.

But the Senate probe, which is supposedly being done in aid of legislation, “The Senate circus shows exactly why corruption is so pervasive in the Philippines: almost everybody gets away with it” quickly became a farce, with lawmakers trying every trick in the book to dodge the bribery issue after discovering that the World Bank report implicates many high-ranking officials and personalities, including the president’s husband: Jose Miguel Arroyo.

Fujimori Family Secret Bank Accounts Uncovered

2009-11-07T02:45:00.001-08:00

LIMA, Dec 2 (IPS) - Anti-corruption authorities in Peru have discovered numerous secret bank accounts holding up to 4.5 million dollars in the names of former Peruvian ambassador to Japan Víctor Aritomi and his wife Rosa Fujimori, former president Alberto Fujimori's sister.

"These are definite leads towards tracking down the ill-gotten money believed to be in the possession of Fujimori and his family," said Walter Hoflich, the financial intelligence expert heading up the investigation of the former president for the Office of the Special Prosecutor for Corruption Offences.

"This is incredible information," the prosecutor remarked to IPS.

Bank documents recording the movements of the money in question emerged during the liquidation of Norbank, a bank used between 1990 and 2000 by Fujimori and his closest relatives for large-scale financial transactions in Lima.

Among the papers turned up by Norbank's liquidators were requests for withdrawals of up to a million dollars made by Mutsue Inomoto de Fujimori, the mother of the man who ruled Peru from 1990 to 2000 and is currently in prison in Chile, while Peru is preparing a request for his extradition.

"Mrs. Mutsue withdrew the money between 1995 and 1998, when she was between 83 and 86 years old, which indicates that they used her as a front to cover up the illegal origins of these funds," a source connected to the Norbank liquidation told IPS.

When the first indications of Mutsue de Fujimori's sizeable accounts at Norbank came to light in 2003, her son Alberto maintained that this money represented "the savings of a lifetime devoted to selling flowers and Christmas trees, honest work."

The anti-corruption authorities questioned how the octogenarian had managed to amass a fortune through such a modest business, but despite the importance of the discovery, they did not pursue the investigation when the information first emerged in 2003.

It was not until Fujimori was arrested in Santiago, Chile last month that the authorities decided to ask the Norbank liquidators for more information on the former first family's banking operations. The results were shocking.

The lead prosecutor in the investigation of the Fujimori family's operations at Norbank, Cecilia Hinojosa, has received copious documentation shedding light on the origins of the 20 million dollars moved around in the accounts that were uncovered.

On Jul. 5, 1990 during a trip to Japan shortly before taking office, Fujimori (the son of Japanese immigrants) instructed the Peruvian ambassador there to open an account at the Bank of Tokyo, to be used exclusively for Japanese donations to aid poor children in Peru.

In 1991, Fujimori appointed his brother-in-law Víctor Aritomi - his sister Rosa's husband - as the new Peruvian ambassador to Japan, and placed him in charge of the Bank of Tokyo account. At the same time, he named Rosa as the representative to the non-governmental organisation Apenkai, founded for the purpose of raising funds in Japan to build schools in impoverished areas of Peru.

>From 1990 to 2000, Japanese citizens and institutions made donations of over 20 million dollars. Of this total, 4.5 million were diverted and withdrawn by Rosa Fujimori through accounts at Norbank, an affiliate of the Bank of Tokyo in Peru.

"Instead of using all of the donated money to build schools for poor children, they appropriated a large part of it for their own benefit," said Hoflich. "What the new documents reveal is the precise financial outline of how they got hold of this money."

The case of the embezzled donations prompted the Peruvian courts to order the arrest of Víctor Aritomi and Rosa Fujimori, but as the former president himself had done in 2000, the couple fled to Japan, which refuses to extradite them.

In 2003, Norbank documents revealed that Rosa Fujimori had written a cheque for 150,000 dollars to her brother Alberto on Sept. 26, 1996. At the time, the former president stated that the cheque involved the "repayment of a family loan" to a friend. He never explained where his sister had acquired the money.

The bank records turned over this week provide an answer: the 150,000 dollar cheque was part of the money diverted from the Japanese donations, which also proves that Fujimori profited from the money skimmed off by his sister.

To cover the trail of the true origins of the money in their accounts, Rosa Fujimori and Víctor Aritomi used not only the former president's elderly mother, but also the names of their own children, Yayoi and Gledy.

Others who purportedly served as figureheads for the bank scam include the former leader's younger brother Pedro Fujimori and Augusto Miyagusuku, known as the "family cashier", a trusted ally who handled the Apenkai accounts with Rosa.

The bank documents show that in order to get the money out of the country, Rosa Fujimori made numerous transfers to accounts at Citibank and Swiss Bank in New York and the offices of the Banco do Brasil in Tokyo.

The anti-corruption authorities also believe that Rosa Fujimori could have taken money with her to Japan in her husband's diplomatic valise, an allegation previously made by Vladimiro Montesinos, Alberto Fujimori's former security chief who is currently in jail in Peru facing numerous corruption and human rights charges.

"The Norbank documents which prove that Fujimori's relatives moved over four million dollars of the Japanese donations are evidence of the crimes of misappropriation and illicit association," said corruption expert Carlos Rivera of the Legal Defence Institute.

"The financial scheme that they used is clearly demonstrated by the bank records: they received the donations, diverted part of them to the accounts of family members, and a part ended up in Fujimori's hands," he commented.

"This information has come at a key moment to demonstrate the responsibility of Fujimori and his family," he added.

Rivera criticised the anti-corruption prosecutors for taking two years to ask for more information in the case.

Hinojosa has instructed the Norbank liquidators to immediately report any further records of account movements.

"These documents are the most promising lead to finding the money illegally acquired by former president Fujimori and his family," said a source from Hinojosa's office. (END/2005)

Think Before Filing for Bankruptcy

2009-07-19T12:41:00.006-07:00

after those endless debt issues may seem as the last resort. However, it might be more of a fearful act. Bankruptcy is a hard-nosed procedure with almost permanent impact. The menacing after effects of bankruptcy, which often are not properly assessed before filing for bankruptcy tend to confuse during the process, thus impelling many to cancel the proceedings.

Debt issues are difficult to deal with and even more strenuous are the problems which typically complement the financial agonies; however, Filing for bankruptcy is not the very perfect answer to curb miseries. Instead, Filing for bankruptcy might just aggravate the issue, leading to even greater, unmanageable troubles. Therefore, before beginning with the official bankruptcy Filing act, read on to find all about bankruptcy and thus refrain from the insidious obligations .

Bankruptcy - The Concept

In the most positive terms, bankruptcy is a legal proceeding that allows individuals and companies to start over again without managing their debt obligations. When large corporations opt for bankruptcy, the leading media representatives talk about it, while when average earning people apply for one, they are an addition to the statistical reports. In the UK, both the stated bankruptcy filing announcements are a norm, thus making bankruptcy sound as an very tempting debt solution route. To further entice the sufferers of the debt, bankruptcy promises to cease all financial stress, and suggest a way out with less to pay, thus eliminate all debt issues.

Bankruptcy has a Host of Harmful Consequences

If you are just thinking about filing for bankruptcy, then consider the matter deeply, because there is much more to it than the benefits stated above, Bankruptcy also has a host of disadvantageous consequences. Once an entity begins filing for bankruptcy and thus declares the bankrupt is devoid of assets of value such as a house or other equity. Businesses could be sold, including machinery to repay creditors. Those declared bankrupts may have accommodation issues, with landlords not too delighted to accept them as tenants. Remember, bankruptcy, is a legal procedure, and therefore is recorded by bankruptcy law. Bankruptcy stays in files for years (see enterprise act for updates) and therefore negatively impacts financial transactions until the same time. The image is not very helpful in envisaged career moves as well. Employers too are apprehensive of those with bankruptcy records in their credit files. Of course, seeking and obtaining competitive credit terms can be just a dream after filing for bankruptcy.

Bank current accounts suddenly seem unobtainable. And after all this mess, there are certain debts which even bankruptcy cannot deal with and there are secured creditors, who have every right to their share, even after the bankruptcy has been declared.

Bankruptcy offers a chance to start again, but there may not be many resources to start again.

Bankruptcy

2009-07-19T12:41:00.003-07:00

The new bankruptcy legislation, which took effect on October 17, 2005, has made the process of filing for bankruptcy a more laborious task, for attorneys and debtors. Of course, that's one side of the coin and the shift is undoubtedly geared towards benefiting the end customer; the debtor.
The documentation that is required when filing for bankruptcy has increased. For example, the debtor must provide additional information that details all income and expenses. In cases where the expenses exceed the IRS allowance, a special circumstances document must be submitted which reasons the necessity of the extra expense incurred. A statement of accuracy must also be submitted, along with these special circumstance documents.
The attorney’s job is further diversified, and a lot of responsibility for ensuring checks is put on the attorney. A signature of the attorney certifies that the petition has been reasonably inspected, and the proceeding is not an abuse of the bankruptcy process. The attorney also certifies that the proceeding is acceptable under current law or that it is a good faith argument for the extension/modification of current law. In case of a violation, the fees of the attorney and the debtor cost can be assessed and made payable to the trustee. This will possibly work as an incentive for trustees to file more motions, perhaps resulting in the need for additional insurance or an unknown increase in current rates.
In a bid to decrease the number of people filing bankruptcy, the new law requires that debtors receive counseling from an approved credit counseling agency within six months prior to filing the bankruptcy petition. This counseling would orient clients of other options that are available to them. Such a counseling session will ensure that people don’t take an uninformed decision to file for bankruptcy.
Here again, it will be the responsibility of the attorney to ensure that the client has attended a certified counseling program. But this is just as simple as a “have you” or “have you not” verification. In Senate hearings the credit counseling industry has been described as "a network of not-for-profit companies linked to for-profit conglomerates. … plagued with consumer complaints about excessive fees, pressure tactics, nonexistent counseling and education, promised results that never come about, ruined credit ratings, poor service, in many cases being left in worse debt than before they initiated their debt management plan.” The debtors’ job is not getting any easier, with counseling required even in such cases where repayment is impossible, or where a debtor faces an unfair debt.
Furthermore, while in the old law in consultation with attorneys debtors chose the type of bankruptcy that they felt suited them the most, in the new law that is not to be the case. The new law will also reduce the number of people who file for Chapter 7 bankruptcy by allowing only people who fall under the median state income, adjusted for family size and inflation, and people who meet the rigorous standards under the means test to file for it. A series of complex mathematical formulas have been put in place to evaluate the rest of people who don’t make this mark. These formulas won’t be fixed, and will be revised on an annual basis when the new median incomes are released. The new law utilizes income and expense standards devised by the IRS that vary by county. There are numerous exceptions and special circumstances to the standards that must be considered for each client.
Clients who do not qualify for the aforesaid means test will be required to file for Chapter 13 bankruptcy. Also, the new law has extended the term for Chapter 13 bankruptcy from the range of three to five years, to a mandatory five-year term. Chapter 13 Bankruptcy clients will now require supervision and representation for at least five years before they receive their discharge.
The effects of the new law are such that it would require attorneys to specialize in bankruptcy. These are complex rules, and a new level of commitment towards the protection of bankruptcy clients is mandated by it.
Yes, it would seem from here on lawyers would be harder to find, because of the kind of complications that have been introduced under the new law. The commitment of Bankruptcyhome.com is undeterred! After all, the basic tenet of bankruptcy filing remains unchanged. A change in the law does not imply a change in the basic principles that we work on. We specialize in bankruptcy litigation will continue to assist clients, even in the face of new bankruptcy legislation.

Student Loan Bankruptcy

2009-07-19T12:40:00.005-07:00

Student Loans Aren’t Discharged by BankruptcyThat’s the bad news. Due to bankruptcy reforms in 1998 and 2005, it’s almost impossible for the average person to discharge federal or private student loans through bankruptcy. You may be able to get help with your payments through a bankruptcy filing, but there are better options for repaying your student loans.
The Student Loan Bankruptcy ExceptionAs with all rules there is one exception: you can discharge a student loan in bankruptcy due to undue hardship. Undue hardship is defined as the permanent physical inability to work. You must prove in bankruptcy court that:
You’re physically unable to work
You’re likely to be unable to work for most of the loan term
You’ve made a good faith effort to repay the debt
Paying it would prevent you, your spouse, and your dependents from maintaining a “minimal” standard of living.
If you believe you qualify under these guidelines, see an experienced bankruptcy lawyer for help filing an adversary proceeding as part of your bankruptcy case.
How Bankruptcy Can Help with Student LoansAlthough your student loan can’t be discharged in bankruptcy, a bankruptcy court may be able to ease an overwhelming debt burden. Some courts may discharge a portion of your student loans, but this is rare and varies by court.
In most cases, the judge will incorporate your student loans into your debt repayment plan under Chapter 13 bankruptcy. Any balance remaining after the payment plan ends will still be due, but your other debts should be paid off by then.
What to Do if You’re Heading Toward BankruptcyIf your total debts have reached an unsustainable level and you feel you must file for bankruptcy, don’t simply stop paying your student loans. Not only are student loans not dischargeable in bankruptcy, but also the federal government has the right to assess stiff penalties, seize tax refunds and other government assistance money, and garnish your wages.
Lenders want to help you avoid default. Contact them for help applying for a deferral, forbearance, or extended repayment plan before the situation gets worse than it already is.
Solutions for Student Loans You Don’t OweIf a lender is demanding payment for a student loan you don’t think you owe, it’s best to resolve the situation before you wind up in bankruptcy court.
The most typical situation is a miscalculation of the actual loan balance, especially if the loan has changed lenders multiple times. If you think the lender is requesting more than you owe or hasn’t properly credited payments, write to them with your evidence. If the issue is not resolved, then a court can intervene to determine the amount you actually owe. A bankruptcy judge may also do this as part of a bankruptcy proceeding.
Your debt may be cancelled if a few situations apply:Situation 1: Your school closed before you completed your education and you couldn’t complete it elsewhere. You don’t qualify if you voluntarily withdrew before the school closed. You may be entitled to a loan reduction if you voluntarily withdrew and the school improperly withheld any remaining student loan funds.
Situation 2: Your school or another party signed the promissory note in your name without your approval or the school falsely certified you as eligible for a student loan when you were not.
Situation 3: You were forced to withdraw due to a disability that developed while you were in school, or that certifiably worsened after you accepted the loan.
For all three situations, it’s best to contact the lender or the federal student loan program for assistance in resolving your unowed debts. Although a bankruptcy court can sort it out for you, other solutions are simpler and better for your financial future.
Student Loan Cancellation ProgramsSeveral federal and state agencies offer programs to help you cancel or reduce all or a portion of your student loan debt without filing for bankruptcy. Most programs involve teaching, nursing, or military service.
In most cases, bankruptcy won’t erase your student loans. Although bankruptcy is still a viable solution for desperate financial situations, it’s best for your future financial well being to avoid it. Contact your lenders as soon as a problem develops in order to avoid worse financial repercussions.

Filing Bankruptcy And 3 Helpful Alternatives To Eliminate Your Debt

2009-07-19T12:40:00.001-07:00

You've got some serious debt problems. Take heart in the fact that a lot of people do these days. The key to getting out from under debt is to evaluate the situation you're in, and then to decide if you're willing to do what it takes to change it. Are you going to stop using the mall as your playground? If so then you have a chance to get out of debt without resorting to bankruptcy.
In fact there are many tactics to try before you even think of heading to a bankruptcy lawyer. Here are some important considerations and alternatives to help you avoid bankruptcy. New bankruptcy laws make it more difficult to file than it used to be.
From the period of 1994 to 2004, filing for bankruptcy has doubled. Bankruptcy filing has spun out of control with consumers being targeted with easy credit. This has become a major cause for bankruptcy.
What About The New Bankruptcy Laws?
There is now a new law for bankruptcy that was passed called the "Bankruptcy Abuse Prevention and Consumer Protection Act". People struggling to pay their credit debts are now going to have to deal with this new bankruptcy law.
3 Effective Alternatives To Help Avoid Filing Bankruptcy
1. Contacting creditors is an alternative to bankruptcy. Instead of filing for bankruptcy, you work out payment options with your creditors. In many cases they are very willing to work with you. It's to their advantage to keep you as a customer. The creditors know the alternatives for bankruptcy will bring them more profits if you don't file for bankruptcy.
2. Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.
3. You may also consider a debt workout for bankruptcy alternatives. With a debt workout, an attorney contacts your creditors and makes arrangements. In most cases the monthly payments will be less than if the credit account was settled in full. For some cases they want the payment in full, but over a longer period of time than originally stated on the credit agreement.
Filing Bankruptcy And How To Find A Good Lawyer
If you have decided there is no alternative to filing bankrupty,you may be asking yourself, "how do I find a good bankruptcy lawyer? The best way to find a good bankruptcy lawyer is through referrals. Family members and friends who filed bankruptcy in the past can refer you to a good bankruptcy lawyer. The yellow pages in a phone book is another great place to find reputable bankruptcy lawyers. Another invaluable place to find a good bankruptcy lawyer and services in on the Internet. When you search for a lawyer, try to find a lawyer that deals with your type of bankruptcy. You can get free advice with the first meeting.
What Will I Need For My Bankruptcy Lawyer?
With your first visit, it's important to bring everything you can on the first consultation. You will need a list of all the creditors and how much you owe for your bankruptcy lawyer to consider. This includes any insurance, medical bills, auto loans, taxes, student loans and any personal loans. Your bankruptcy lawyer can give you the advice you need with this important information. This will make the filing process easier if you do decide to file bankruptcy.
If you're not going to be able to change your behavior enough to get your debts under control, then you may, at some time, have to resort to bankruptcy.

Bankruptcy Information a Helping Hand in Trying Times

2009-07-19T12:39:00.005-07:00

Bankruptcy is a phrase heard and used by many. Individuals tend to have pre-conceived notions about bankrupts that they are individuals who are totally broke. But bankruptcy information can be a real eye opener for debtors who are contemplating bankruptcy and individuals who are seeking information about bankruptcy. It helps debunk all the myths attached to bankruptcy. 1)What is bankruptcy?Bankruptcy is a legal term to formally identify an individual as bankrupt. It refers to the inability of any debtor or organization to pay their creditors. In majority of the cases, bankruptcy is initiated by debtors or organization themselves. The main purpose of bankruptcy law is to provide any honest debtor a chance to start afresh and to help a debtor repay his/her creditor/s in an orderly manner to the best extent possible by the debtor. Debtors are discharged of most of their financial obligations after their non-exempt assets have been distributed. Creditors can no longer harass debtors or continue any lawsuits once the debtor has opted for bankruptcy.2)Implications of bankruptcy:Filing bankruptcy is one of the hardest financial decisions. Debtors must carefully examine the implications of bankruptcy and choose it as a last resort to deal with financial troubles. Following are the implications of bankruptcy:Lose control over your assets (except items/equipment required for work/household purposes)Cannot act as director of a company/practice as a lawyer/chartered accountantNegative publicity as a bankruptcy is advertised in 'London Gazette' and a local newspaperBankruptcy remains on record with credit agencies, land registry and other organizations3)Common terms to understand bankruptcyBankruptcy petition: Individuals who opt for bankruptcy need to formally request protection of the federal bankruptcy laws. It involves filling of two important forms-The petition (Insolvency Rules 1986 form 6.27) and the statement of affairs (Insolvency Rules 1986 form 6.28).Chapter 7 bankruptcy: This chapter of the bankruptcy code provides for 'liquidation'. The debtor's non-exempt property will be sold and the proceeds will be distributed among his/her creditors. Chapter 13 bankruptcy: This chapter of bankruptcy provides a reorganization plan for individuals with regular income. It allows a debtor to retain his/her property and pay back his/her debt within 3-5 years.Debtors could also consider various alternatives to bankruptcy before filing for bankruptcy. IVA, debt consolidation loan, debt management etc are proven alternatives to bankruptcy which the debtor can consider before he/she files for bankruptcy.For comprehensive bankruptcy information log on to www.bankruptcy-information.bankruptcy help

What you Must Consider Before Filing Bankruptcy

2009-07-19T12:39:00.001-07:00

Bankruptcy is not something that you do on the spur of the moment, but rather it should be a well thought out plan that you only implement when you have exhausted all other possibilities. While bankruptcy may provide a way out of your current financial situation, you need to consider and be aware that the ramifications of filing bankruptcy are going to haunt you for the next 7 to 10 years. Many people who file bankruptcy are doing so to make things better “now” but they are not looking years down the road, and when they do and wish they had considered other options, it is then too late.If you are on the very edge of filing bankruptcy and need a way out, there are multiple other options that may be available to you. If you feel like you’re hopelessly buried in debt and you have very few assets, filing for bankruptcy may not be the answer to ending your financial problems. Though it sounds like an easy and attractive solution for one's financial problems, bankruptcy should be the last option any individual should resort to. Throughout the process of filing for bankruptcy, it is a good idea to have a lawyer represent you through all formal bankruptcy proceedings. Unless you yourself are very familiar with bankruptcy law, especially the variations of the law within your state, it is more than just a good idea to have a bankruptcy lawyer represent you; it is almost a necessity so that you don’t accidentally get yourself into worse trouble than you are right now. From start to finish, the process of filing for bankruptcy is much different than it has been in decades past, and a good bankruptcy attorney knows those pitfalls and can navigate around them. Before taking the big step and filing for bankruptcy, you will need to do some reading, especially so that you can explain to your bankruptcy attorney the reason for considering bankruptcy. You may need to consider filing bankruptcy if your expenses are increasing because of divorce, job loss, or medical bills, while your income is decreasing because of the same reason. There are various good reasons for filing bankruptcy, but there are also many BAD reasons for filing bankruptcy, based on the ease with which one could do that in years past, but most of those loopholes have been closed, and it is not nearly as easy today to file a non-painful bankruptcy case. If you have decided there is no alternative to filing bankruptcy, you may be asking yourself, "how do I find a good bankruptcy lawyer? If you have exhausted all other resources and still feel bankruptcy is your only viable option you can learn more about filing bankruptcy or buy do it yourself bankruptcy forms. If you’re unemployed, on public assistance, have little or no money in a bank account, don't own an automobile, or rent or live with others, filing for bankruptcy may do little to improve your financial situation. The bankruptcy judge is going to want to see a plan of how you plan to change your current situation so that you are not back in the same position in another few years, so be sure that you discuss a financial plan with your bankruptcy lawyer.

7 Steps to a Fresh Start After Bankruptcy

2009-07-19T12:38:00.009-07:00

Bankruptcy is one option to consider in order giving yourself a “fresh start,” when you have more debts than you have assets. There are in fact many types of bankruptcy provided under the law but the most common is Chapter 7 bankruptcy, which is also known as liquidation. When filing under Chapter 7 bankruptcy, all your assets, excluding those that are exempt under the law of your state, are dissolved and liquidated. Generally, the person tasked to do this is the court-appointed official, called a trustee. All in all, the vital task of the trustee is selling your properties and using the proceeds to pay your creditors. After doing such, the court will then cancel many of your remaining debts, thus affording you a “fresh start” to life. Here is a step-by-step guide to filing a bankruptcy under Chapter 7 bankruptcy:Step 1: Decide whether you should file bankruptcy or not.Filing bankruptcy is a personal decision, influenced by many factors, such as the amount of serious debts and your ability to meet the original payments or pay the full amount. For starters, when you are broke, it is never a nice experience getting harassed by creditors for debts incurred. For another, your decision to file should not be made for the sole purpose of putting a stop to your demanding creditors. This is a significant point as secured creditors may apply for “relief from stay,” thus allowing them to continue their efforts to repossess or foreclose even though you already filed for bankruptcy.Step 2: Get an attorneyWhile the law on Chapter 7 bankruptcy does not need individual consumers to hire an attorney who would represent them in court, it is still advisable to ask for legal help, particularly concerning critical decisions involved in bankruptcy. Step 3: Comply with the legal requirements.File your petition with the bankruptcy court serving in your area. If you are a business debtor, then file with the bankruptcy court in the place where the business was organized or has its principal place of business or principal assets. Your attorney should be able to advise you on how to deal with these required legal forms.Step 4: Pay the necessary fees.As with any other court cases, there are certain fees required, such as:• Case filing fee • Miscellaneous administrative fee • Trustee surcharge Upon filing, you are usually asked to pay these fees to the clerk of court. Note that the number of installments is limited only to four. Additionally to that, you are also required to make the final installment no later than 120 days after filing the petition. Step 5: Notice to the creditors and meeting.After filing your petition for bankruptcy under Chapter 7, paying the necessary fees, and complying with the legal requirements, an “automatic stay” is granted to you by operation of law. This stay will efficiently stop most collection actions against you and your properties. This means that as long as the stay is in effect, creditors cannot initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. After the bankruptcy case has been filed, the bankruptcy clerk will give notice to all creditors whose names and addresses you provided. Then, the case trustee will hold a meeting of creditors between 20 and 40 days after you filed your petition. Step 6: Cooperate with the trustee.The case trustee has a vital role in a bankruptcy case. His primary responsibility is to liquidate your nonexempt assets in a manner that maximizes the return to your unsecured creditors. He does this by selling your property, if it is free and clear of liens and as long as it is not exempt, or if it worth more than any security interest or lien attached to the property and any exemption that the debtor holds in the property. In view of the broadness of a trustee’s power, it is significant therefore that you cooperate with the trustee. Provide any financial records or documents that the trustee requests and answer questions, which the trustee is necessary to ask at the meeting of creditors under the Bankruptcy Code. Step 7: After the discharge…If all goes well with your Chapter 7 bankruptcy case – that is, no one files a complaint objecting to the discharge or a motion to extend the time to object – the bankruptcy court will issue a discharge order relatively early in the case, about 60 to 90 days after the date first set for the meeting of creditors A discharge order is an order issued by the bankruptcy court, releasing you from personal liability for most debts and preventing your creditors from taking any collection actions against you. As a rule, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of Chapter 7 bankruptcy cases. For someone filing under Chapter 7 bankruptcy, a discharge of almost all of your debts is the ultimate goal. With the release of all your debts and creditors stopped from pursuing any further collection actions against you, the opportunity for a fresh start is apparent.

First Steps To Understanding The Bankruptcy Code

2009-07-19T12:38:00.007-07:00

Becoming bankrupt is not something that many people think about. There are occasions when this will happen and these individuals will need to file for bankruptcy. The assorted chapters of bankruptcy like chapter 13, and chapter 11 are taken from the bankruptcy code. This code was established by the US congress. Believe it or not, much of these laws are in place to protect the individuals who are having financial problems. Below we will outline what the bankruptcy codes are and what they mean to you.These laws were put in place so that there was a uniform law about bankruptcy that could be found throughout the US. These laws from the bankruptcy code are designed to protect the person who is in debt from further problems. There are currently four main types of bankruptcy laws that are taken from the bankruptcy code. You will recognize these bankruptcy laws as chapters. Chapter 11 is one of the bankruptcy laws that can be found in the bankruptcy code under the heading chapter 11. The different chapters inside the bankruptcy code provide info for people who are in debt. The various ways that the law can work to keep you safe from unreasonable hassles can be found inside the pages of the bankruptcy code chapters. As a citizen you have the right to view and read these laws. The only problem that we see is it is typically to late for most people. Meaning they are already in financial trouble, so reading about the laws to stop the bankruptcy may not work. However, you will still want to understand the rights you have being in a bankrupt state of affairs.While the US government has provided the framework for these laws of the bankruptcy code each state has the right to pass other laws that will work in accordance with the bankruptcy code. They don't have the right to change the law, just factors that pertain to their specific state can they add. The states can only provide other laws that are compatible with their state's laws. Otherwise the states themselves don't have the power to govern how the bankruptcy code works. There are many dissimilar and new laws that you can find when you look through the bankruptcy code. One of the new laws that you will find is the altered state of the debtor-creditor relationship. While the different states can't vary the basic rules of the bankruptcy code they do have the right to interpret how these bankruptcy claims are filed and acted on in their respective states. If there is a major change to the bankruptcy code this change will be passed by congress. One such change that has taken effect alters the rules of bankruptcy for chapter 7. In this part of the bankruptcy code all debtors must prove that they have the right to file for bankruptcy. The bankruptcy was established and put into place to address those that are in financial trouble and for creditors to get their money back. This of course if a very general definition, but will serve the point. So be responsible and spend less than you make.They will be allowed to file for bankruptcy only if these people have fulfilled a counseling session. This step has been taken to hold that the bankruptcy code is not being misused by the assorted individuals who want to avoid paying their various debts. As the bankruptcy code has been placed for our shelter it is best if you handle these laws with respect. Remember, bankruptcy is here to help and if you respect the laws of the code then it can be used as a tool if you are every in the need.

Life After Bankruptcys

2009-07-19T12:38:00.003-07:00

Bankruptcy is the last resort for any debtor wherein he/she legally declares the inability to pay back the debt owed. In most cases bankruptcy is initiated by the debtor or the organization. However creditors can also request bankruptcy in an effort to get back what they are owed. After filing bankruptcy you can choose the life you want to live – you can either re-build your finances or plummet deeper into the abyss. Follow The Checklist below and You're Going to Emerge Unscathed Even after Bankruptcy• Restrict or if possible STOP using credit cards • If required get a secured bankruptcy credit card an pay your dues regularly • Wait for two years before availing mortgage or even bankruptcy car loan to get the best interest rates • Get copies off your credit reports and ensure that your accounts are listed as discharged Bankruptcy Loan – Getting a Loan after BankruptcyAvailing small and easily repayable bankruptcy loan – be it bankruptcy home loan or even bankruptcy car loan, will help you not just deal with your financial obligations but it will also help you rebuild your credit rating. A small bankruptcy personal loan is the ideal solution to repair your credit status. However there are some facts about bankruptcy loans that you must be aware of. Firstly, bankruptcy loans are recommended only for people who have declared themselves bankrupt and only after their case has been discharged, their creditors have been paid. You have to wait for at least 2 years for your bankruptcy home loan or bankruptcy car loan application to be approved without unnecessary delay. Generally lenders perceive bankrupts as threats and don’t particularly want to risk lending to a recently discharged bankrupt. If you have chosen Chapter 7 Bankruptcy you must wait for 2 years to apply for a loan and in case of Chapter 13 Bankruptcy you need to first pay the full amount to your creditors before applying for a loan. Can You Get A Credit Card After Bankruptcy?You owned a home and hardly ever defaulted on your monthly payments. Your credit report sparkled. But unfortunate health circumstances forced you out of your job and you had to file for bankruptcy…Today you are looking for bankruptcy credit card without being charged outrageous interest rates. So what are you’re choices? You can choose between secured credit card for bankruptcy and unsecured credit card after bankruptcy. Secured bankruptcy credit card is secured by a savings account you establish with your creditor. This savings account works as collateral for your credit limit. If you default on your payment your creditor will take money from the savings account. If you’re looking for a risk free credit card after bankruptcy – unsecured bankruptcy credit card is the option for you as it does not require any collateral. Many people think about filing bankruptcy but the fear of life after bankruptcy hold them back. The information offered in this article aims to enlighten you on what you can expect when you have filed for bankruptcy.

Consumer Education is Key When Considering Bankruptcy

2009-07-19T12:37:00.005-07:00

Only a few short years ago, it used to be fairly easy to file bankruptcy, almost as easy as it is in the board game of Monopoly, where the ramifications of doing so were about the same as in Monopoly. But it was determined that so many people were taking advantage of bankruptcy to compensate for a lack of financial skills, a lack of money management, and basically attempting to lead a champagne lifestyle on a beer budget that the bankruptcy laws were recently changed.To be sure, the bankruptcy laws still vary from state to state, but there are some things that even state legislature cannot disagree on if they conflict with the federal bankruptcy laws. Even at this, some people have attempted to file bankruptcy in a state that may have more lenient bankruptcy laws than the state in which they have listed as their address of residence, and one of the things that the new bankruptcy laws is doing is ensuring that people who file bankruptcy do so in the state in which they live.Another requirement of bankruptcy with the new laws is that the person filing bankruptcy is required to attend credit counseling sessions and financial education courses. While this is still part of the law and you can expect that requirement into the foreseeable future, studies are starting to show that such a requirement has so far failed to deliver the positive results that were expected, and in fact have delivered very few significantly measurable benefits to the consumer.Is there a value to requiring consumers to spend (or as some say, "waste") their time on credit counseling and financial education courses before being allowed to file bankruptcy? Many are saying it makes no sense at all. On one hand, the advocates who say it makes little sense are right, since by the time a person is so far in financial distress that bankruptcy is their most viable option, the time for financial education and credit counseling has long since passed. But on the other hand, how do you require someone to attend those classes and counseling sessions BEFORE they get into a bankruptcy situation, since the vast majority of people are unwilling to admit, even to themselves, that they are heading in the wrong financial direction.Good consumer information about bankruptcy is one answer. While the government or the state cannot protect each and every consumer from financial folly, nor can they force the consumer to attend courses or counseling, they can put the monkey on the consumer's back by making information about bankruptcy available, perhaps even at no charge. The vast majority of consumers have no clue about the various chapters of bankruptcy and which one they should choose if they get into a bankruptcy situation.Moreover, most consumers think of bankruptcy as their only option, when in reality the act of declaring bankruptcy should be the option of last resort. There are many viable alternatives to bankruptcy, most of which do not have the long-lasting negative impact on the consumer, such as the fact that bankruptcy stays on one's credit report for the next 7 to 10 years. Consumers should be taught about the options that are available before considering the "act of last resort", which is bankruptcy. For example, debt consolidation firms can pull a consumer out of the financial fire without requiring bankruptcy in many situations.Consumer education about bankruptcy is paramount, and every consumer should make a point to understand at least the basics of bankruptcy, what it means, how it works, and most of all, what viable alternatives to bankruptcy are available

Filing Bankruptcy Online

2009-07-19T12:37:00.003-07:00

Now days, with the wide availability of bankruptcy form processing services on Internet, filing bankruptcy online has now become easier and the good part of the story is that the process is very easy and time saving. If you understand the legal requirements associated with filing bankruptcy and you know what are the forms that you need to fill and submit in this regard, you do not even require hiring a bankruptcy attorney to help you with the procedure of filing bankruptcy. Ways To File Bankruptcy In fact, there are plenty of ways you can use to file court petition for bankruptcy. For example, if you can hire bankruptcy lawyers to do the job for you or you can avail the various online bankruptcy services available on Internet, or if you are a legal expert and you know the ins and outs of the various bankruptcy laws, you may choose to go for personal filing. How Much Does Filing Bankruptcy Online Cost? Depending upon the type of filing process you have chosen, the costs will vary. For example, filing bankruptcy online for chapter 7 bankruptcy and chapter 13 may cost you somewhere around two hundred dollars or less, depending upon the type of bankruptcy you are filing for. If your bankruptcy case is a bit complicated and you know that you are not capable enough to defend your bankruptcy claims yourself successfully, it is always recommended to avail the valuable services of an expert bankruptcy attorney. They will never let you down. These days, even the bankruptcy lawyers choose to go for filing bankruptcy online, as it makes the process much easier and most importantly, it saves a lot of time both for the debtor and the bankruptcy attorney, but of course, it costs a little more. Advantages Of Filing Bankruptcy Online If you do not want to hire a bankruptcy attorney, it will be wiser for you to take advantage of the various online bankruptcy services. They are known as online bankruptcy form processors. They will help you in several ways. For example, when you submit your specific bankruptcy case to them along with all the relevant information, they will suggest you the right type of bankruptcy that you should claim for and they will provide you the right bankruptcy forms to fill. Once you submit those forms, they will review all the information you provided with the forms. If some information is missing, the online bankruptcy forms processor will inform you regarding the same and will ask you to submit the missing information. Once they approve everything, on your request, they will even file a court petition for bankruptcy for you. This way, we can see that filing bankruptcy online will take away the pain out of the complicated proceedings.

Declaring Bankruptcy-Chapter 7, Chapter 13, Or None Of The Above

2009-07-19T12:36:00.007-07:00

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. Bankruptcy is not something I recommend any more than I would recommend divorce. Along with a divorce, bankruptcy is listed in the top 5 life-altering negative events that we can go through, along with severe illness, disability, and loss of a loved one. In its simplest form, bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Chapter 7 bankruptcy provides for the discharge, or elimination of, unsecured debts in order to start financial recovery. Chapter 13 bankruptcy provides a repayment plan for secured debts, such as a home mortgage. There are pros and cons to each of the consumer bankruptcy options as well as personal financial circumstances that may limit your options.Because it completely rids you of your unsecured debt, Chapter 7 bankruptcy is the easiest way to come out of debt. Since all your debt is, in essence, wiped clean in a Chapter 7 filing, people have started abusing it. In a bankruptcy case under chapter 7, you file a petition asking the court to completely discharge your debts. Chapter 7 relief is available only once in any eight year period. Chapter 7 bankruptcy, which is sometimes referred to as total bankruptcy, stays on your credit report for 10 years. Chapter 13 bankruptcy, more like a payment plan, stays on your credit report for seven years. Chapter 13 bankruptcy is the most common type of "reorganization" bankruptcy for consumers: You get to keep all of your property, but you must make monthly payments over three to five years to repay all or some of your debt. The specific amounts of your repayment are determined by the courts.Although bankruptcy can help with your financial situation, it does not help in every circumstance. Debts that are not eligible to be discharged include child support payments, some taxes, and student loans. Debts that can be discharged include personal loans, credit card debts, and medical bills.Filing bankruptcy is a very serious move, and you must consider your options in comparison to your financial future. Filing bankruptcy involves a series of steps that you must be aware of. Filing bankruptcy is a major decision, with many benefits, including its ability to stop foreclosure, wage garnishment and creditor harassment. Filing can provide borrowers with clean financial slates either by discharging debt so that the one no longer is liable for its repayment, or by instituting a realistic repayment plan under the discretion of the bankruptcy court. Filing for bankruptcy may be one of the most difficult decisions a person can make. There will always be those who file bankruptcy because of irresponsible financial behavior while others have simply fallen into unfortunate circumstances. For many who are forced to consider bankruptcy, the actual decision to file is usually the hardest part. Even with the negative implications of filing bankruptcy, most who have filed will agree that the psychological relief is a huge strain removed from their lives. Filing for bankruptcy is not the end of the world.Bankruptcy is not a substitute for financial responsibility. Bankruptcy is not a quick fix for all credit problems. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. Bankruptcy is the process by which you are legally allowed to get rid of your debt. Filing bankruptcy should only be used as a last resort effort to help people crawl out of a credit hole and get back on their feet.

Get the Straight Facts About Bankruptcy Law

2009-07-19T12:36:00.005-07:00

There used to be a time not that many years ago where one could file for bankruptcy at the drop of a hat, just because they wanted to. In the majority of cases, there did not even need to be a real financial need to do so, but with the very lax bankruptcy laws in place at that time, many people found it easier to file for bankruptcy than to struggle with paying their debts, and many people filed for bankruptcy once every two or three years.The bankruptcy laws have gotten significantly tougher in recent years, and in fact you may not be approved to be able to file bankruptcy with the new laws. While the bankruptcy laws still vary widely from state to state, there are enough federally mandated laws in place that filing bankruptcy is a significantly more difficult process than it used to be, and requires approval of the bankruptcy judge, which is not granted automatically.In fact, the procedure for filing bankruptcy is no longer a do-it-yourself procedure. There are places that market a do-it-yourself bankruptcy kit, but the amount of time you will spend to understand the very complex and complicated procedures will leave your head spinning. Your time is much better spent getting your financial life back together, and the money you spend on a good bankruptcy attorney will be well worth the expense, since the bankruptcy attorney will know the procedures, the hurdles, and be familiar with the variations of the bankruptcy law in the state where you are filing.Another point about a good bankruptcy attorney is that they are in an excellent procedure to advise you as to your best options. More often than not, a debt consolidation service may be a better overall option for you, and debt consolidation does not have the long term negative affects on your credit score that bankruptcy does. You may wish to visit our web site at http://www.debtconsolidationstrategies.com for more information about debt consolidation.There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.While you are thinking about bankruptcy, there are probably people around you who "know" the bankruptcy laws but what they think they know is probably wrong. Some people think they will lose everything in bankruptcy. Not true. This depends on your individual situation and the type or chapter of bankruptcy you file. You may in fact not lose anything at all.Another myth is that you will never be able to get credit again after filing bankruptcy. Nothing could be further from the truth. Granted, it will be more difficult to get credit and until you have proven yourself again, you will likely have to pay a higher interest rate for that credit, but getting credit after bankruptcy is not a major hurdle.You need to understand the bankruptcy laws from people like a bankruptcy lawyer who deal with bankruptcy all the time, not take the advice of people who heard this, that and the other thing about it. This is a critical time in your financial life, and the last thing you need is bum advice from someone who thinks they know what they are talking about.

Considerations Before Filing Personal Bankruptcy

2009-07-19T12:36:00.001-07:00

For some people, filing personal bankruptcy is the only way they can find their way out of overwhelming debt. Whether your debt is the result of not being able to pay your bills because you were laid off work or the result of poor financial decisions, there are a variety of things to consider before actually filing personal bankruptcy. When you first consider to file bankruptcy, you will need to decide if Chapter 7 or Chapter 13 bankruptcy will fit your needs better. As well, there are a variety of debts that cannot be included in your bankruptcy settlement. Chapter 7 bankruptcy requires that a bankruptcy trustee sell off your nonexempt assets so that your debt can then be repaid. With Chapter 7 bankruptcy, there is the risk of losing your home, along with a majority of your other personal items. Therefore, before filing Chapter 7 bankruptcy, it is important you have a full understanding how Chapter 7 works. When it is all said and done, if you file Chapter 7 bankruptcy, you will no longer have your overwhelming debt. Chapter 13 bankruptcy varies quite a bit from Chapter 7 bankruptcy. Chapter 13 bankruptcy requires that a portion or all of your unsecured debt is repaid. A repayment plan is established through the bankruptcy court. Payments can be made over a period of 36 months to 60 months, depending on the amount of the debt. The repayment amount is equal to or greater than the amount would be should you have chosen to go with Chapter 7 bankruptcy and liquidated your assets. Although personal bankruptcy may seem like a great way to break free of your overwhelming debt, there are some types of debt that cannot be included when filing bankruptcy. Debt that occurs from student loans, taxes, child support, spousal support, criminal fees and charges made on a credit card 40 days before filing bankruptcy cannot be included in personal bankruptcy. It is important that you realize filing personal bankruptcy will have a negative effect on your credit rating. This effect will last for approximately seven to ten years, depending on what type of bankruptcy you file. Although your credit score will be affected, you can still obtain credit after you have filed bankruptcy. However, the credit that you will be able to obtain will carry a higher interest rate than it would if you didn’t have a bankruptcy on your credit. Filing bankruptcy can also have other negative effects. For instance, if you would need to obtain life insurance you may have a harder time obtaining a policy. Many car insurance companies are now charging a higher premium if you have a bad credit score. Many employees are now running credit checks. Therefore, if you have a bankruptcy on your credit, it may be harder to obtain a job. You may also experience psychological effects, such as depression. For many, debt is a way of life. However, there are instances when the debt becomes more than you can handle. Personal bankruptcy is a way to help you deal with debt that you can no longer pay. If you are looking to file bankruptcy, it is important that you have a full understanding of the way it works, as well as the lasting effects bankruptcy can have.

Federal Bankruptcy Explained

2009-07-19T12:34:00.000-07:00

In the United States, federal bankruptcy was designed by congress as a relief measure to persons or organizations who are financially distressed. In other words, in the face of insolvency, an individual or organization can find relief against their debt obligations in federal bankruptcy.Chapter 7 of the federal bankruptcy code provides for the appointment of a trustee for the liquidation of assets of the debtor for orderly distribution to the creditors. When a debtor's assets are being liquidated, federal bankruptcy code requires that this should be subject to certain exemptions.Federal bankruptcy exemptions determine how much property a debtor can keep when they file for Chapter 7 bankruptcy and also the category of items. One of the schedules in a debtor's petition under the federal bankruptcy code is the schedule of exempt property. In essence, Federal bankruptcy law provides that creditors cannot claim certain properties of a debtor.In the same manner, the debtor cannot be discharged of some debts. In some states, state exemptions are different from federal exemptions (in the United States). Although each state is permitted by law to adopt its own exemption law, certain states allow Federal bankruptcy exemptions and so a debtor may choose to abide by the federal list of exemptions or by that of their home state. But overall, the state decides which exemption is upheld in a bankruptcy court within that jurisdiction. This underscores congress goal to offer protection to financially distressed individuals or organizations. Married couples may double all exemptions under federal bankruptcy code.Bankruptcy is something that could happen to anyone. Even big organizations do lose their shirts. Since bankruptcy is something that could actually happen to anybody, our laws provide safety nets for people, municipalities and business entities that have financial difficulties. Chapter 12 Bankruptcy deals with family farmer or fisher folks, Chapter 11 Bankruptcy deals with business reorganization, Chapter 9 talks about municipalities while Chapter 15 focus on ancillary and cross-border cases. Although there are many types of bankruptcy, only two of these types of bankruptcies actually concerns individuals like you. Chapter 7 and Chapter 13 Bankruptcy tell you how you van dissolve you piles of debts.According to a study in 2007, on the rate of federal bankruptcy and state bankruptcy, businesses are embracing proceedings under state laws rather than federal bankruptcy laws because proceedings under the former is faster, less expensive and more private.In view of this, the debtor should endeavor to compare Federal bankruptcy exemptions with their states exemptions using the guidance of a solicitor when filling their bankruptcy forms.Filing Fees For BankruptcyFiling for bankruptcy entails some expenses. Just because you are broke that does not mean that you are exempt from court filing fees. However, the good news is that filing fees for individuals are very much lower compared to those filing fees imposed on businesses. For instance, where businesses filing under Chapter 11 Bankruptcy are required to filing fee in the amount of $ 1,039, individuals who are filing bankruptcy under Chapter are only required to pay $299 while those who are filing under Chapter 13 gets to pay $274. Family farmers and fisher folks also get to pay lower fees compared to big companies. Under Chapter 12 Bankruptcy these people are only required to pay $239. Sounds complicated? Not really. If you have experts to guide you through bankruptcy filing and the proceedings that will follow thereafter, you will get through the whole thing without a snag.No matter the route you choose, guidance and information is very essential. Bear in mind that bankruptcy is not a panacea to financial indiscretion but an opportunity to start afresh and making use of the lessons learnt pre-bankruptcy.

The Truth About Bankruptcy

2009-07-19T12:29:00.002-07:00

As more and more Americans fall victim to rising bills and a slowing economy, a good number of ordinary citizens have been forced to investigate bankruptcy as a final solution to mounting debt-loads. Nearly two million of us went bankrupt last year and the number continues to climb. For consumers who’ve never before fallen behind in their payments, too many simply lose hope and, after the first call from a collection agency, blindly reach out for bankruptcy protection without learning much about the program. In reality, modern bankruptcies aren’t nearly as easy as people have been led to believe, and the consequence for credit report and families’ financial stability can often be disastrous. Furthermore, several alternatives to bankruptcy have emerged in recent years that, for the average borrowers, could make a good deal more sense. Bankruptcy’s certainly more widely discussed and may seem more convenient, but the repercussions of bankruptcy can be truly severe and, for a wide swath of borrowers, the program may not even be available. In this article, we hope to explain the bankruptcy process and illuminate some of the lesser-known pit-falls. For the genuinely desperate, bankruptcy protection may indeed be their last option, but, for the majority of consumers, it’s something to be avoided at all costs even for the few that qualify.

Some form of governmentally-sanctioned bankruptcy protection has been in existence for hundreds of years. Of course, until recently, the drawbacks were rather more severe – debtor’s prisons, thumbs branded with ‘T’ for thief, ears nailed to pillories (and, in Greek and Roman times, slavery). The term itself comes from the Italian banca rotta or broken bench and neatly signifies the often humiliating stigma of helpless debt-loads. It wasn’t until the late nineteenth century that the United States government first implemented legislation meant to help the borrower who, by means not of his control, had fallen behind on payments, and the first laws instituting bankruptcy as we now know it only came into being just over a hundred years ago.

Essentially, bankruptcy protection is intended to assist individuals and corporations in liquidating or re-structuring their debts under the oversight of court-mandated trustees. A number of different statutes and accompanying federal bankruptcy divisions have been erected over the years concerning various types of debtors. Chapter 11, the third most common bankruptcy, is intended for businesses to re-organize while maintaining control of their enterprise (and, perhaps, agreeing to repay funds owed through future earnings). Chapter 9, famously used by Orange County several years ago, extends protection to municipalities and governmental utilities. Chapter 12 is solely intended for family farms and fishermen while Chapter 15 is meant for foreign corporations doing business on American soil. In this article, we’ll just take a look at the bankruptcy options overwhelmingly used by individual consumers: Chapter 7 and Chapter 13.

Chapter 7 protection’s what most people think of when they hear the term bankruptcy. Under certain circumstances, Chapter 7 protection will eliminate most unsecured (leaving aside those loans pegged upon collateral that could be repossessed or foreclosed upon; vehicles and homes, most commonly) debts. Child and spousal support, recent tax liens, fines or penalties assessed from criminal actions, or most student loans would not be dischargeable under current law. 2005 legislation made it considerably more difficult for average borrowers to qualify for Chapter 7 protection. Applicants are now subjected to the so-called ‘means test’ which compares all filers’ incomes and living expenses to an arbitrarily defined state average in order to determine their degree of need, and, should income be too high or expenses too low, the court would instead switch those seeking to declare toward Chapter 13 bankruptcy.

A Chapter 13 bankruptcy isn’t that different from the corporate re-organization plan, really, except it’s dramatically harder for families to follow strict and governmentally-created budgets. Essentially, a trustee will determine what each filer’s income should be (based upon one past stretch and ignoring changes of employment or seasonally-based work) and what expenses are needed (often forcing relocation and pulling children from private schools, for example). Using the same criteria as Chapter 7, up to fifty percent of that debt-load may be eliminated, but the remainder’s lumped together in a payment plan with monthly minimums often higher than the borrower was currently paying (or, as often the case, not paying) with severe repercussions should even a single month’s payment not arrive.

In both cases, filers can expect their unsecured debts to be lessened if not entirely liquidated, but there are more serious disadvantages that aren’t mentioned as often. First of all, absolutely nothing’s as damaging to the borrower’s credit report or FICO score . A bankruptcy will remain on a credit report for up to a decade and in court documents for twenty years. Any future financial transactions will be severely curtailed. Continuing education, home loans (even rentals), even many potential employment opportunities may be near impossible with a bankruptcy on one’s record. Security clearances or personal insurance will often be denied. And, if it needs mentioning, there’s an understandable social stigma surrounding bankruptcy. It’s considered the final option for a very good reason.

Beyond the ruinous effects upon credit and eventual life plans, though, there are the practical drawbacks immediately discernable. With Chapter 7 protection, the newly bankrupt have always faced the threat of property being seized by the government and auctioned for sale with proceeds going to repay creditors, but, in the past, such property was valued purely be re-sale amounts. Under the 2005 legislation, however, all property’s to be valued with regard to replacement costs. Obviously, this makes any total much higher and greatly increases the chance all possessions (including household goods, family heirlooms, toy and hobby equipment, even clothes) could wind up on the auction block. Would elimination of debts be worth the elimination of a life’s collected possessions?

With Chapter 13 bankruptcy, on the other hand, there’s the necessity of submitting the next five years’ existence to federal guidelines and the whims of a court-appointed trustee. Everything depends upon state averages and an arbitrarily-set list of day-to-day needs. Should your child require special schooling or your line of work require a certain type of vehicle (or, simply, should you live in an area of the state with considerably higher rents), none of this would matter. Remember: these new statues were implemented solely to make it less advantageous for the average consumer to declare bankruptcy. And few things could be less desirable than a life lived under IRS statistical dominion.

Leaving aside the popular myth of bankruptcy offering a fresh start (even though, as we’ve shown, most debts aren’t even dischargeable under the current legislation), black-marks against credit reports last up to a decade. There’s a common misconception that, in Chapter 13 bankruptcies, debtors can choose certain credit lines to maintain. Upon threat of imprisonment, though, every single account must be included within the bankruptcy. .If borrowers are somehow able to manage credit card companies or mortgage lenders to again trust them, the interest rates would be sky-high. The very procedure of filing for bankruptcy, even with the well-paid assistance of bankruptcy attorneys – whose importance, as laws grow more complex, cannot be underestimated – has become an incredibly laborious undertaking; almost a second job even before considering the mandated (and borrower funded) debt management classes each filer must complete before discharge.

As unemployment worsens, credit cards become more available to all sorts of borrowers, and (a rarely-discussed but important reason for the rapid increase of filings) the rate of divorce spirals, it’s easy to see why so many Americans still feel the need to declare bankruptcy, but other alternatives do exist. The debt settlement programs combine much of what’s enticing about bankruptcy protection with safeguards against garnished wages or loss of property – and relatively minor credit repercussions compared to the FICO score carnage Chapters 7 and 13 may inflict. Essentially, negotiation professionals talk to each creditor on behalf of the debtor and, in exchange for an easily navigable monthly installment plan, attempt to reduce the overall debt-load toward something more manageable. The creditors themselves, reasonably, worry that persecuted borrowers may attempt a Chapter 7 as a last-ditch solution, and, however unlikely total liquidation of debt this current climate, they still would prefer not to risk the chance. Furthermore, the legal costs too often outweigh the debts they actually collect – and, once accounts go to collection agencies, those rare funds tracked down amount to pennies on the dollar.

For all concerned, it’s a better idea to work out some sort of mutually-beneficial arrangement. Depending on each borrower’s specific financial portfolio or debt-load, the debt settlement professional lowers both payments and balance in amounts exceeding forty percent. Credit reports take a hit, of course, but the effect upon FICO scores is nowhere near as extreme as what happens after a bankruptcy. Borrowers that have successfully followed the debt settlement program may regain top credit scores in only a matter of years. Beyond which, there’s no threat of governmentally-sanctioned budgeting or seized possession – and existing bill collectors must contact the borrowers’ debt settlement officer when attempting to collect monies owed.

Obviously, as with any serious financial issue, one should always consult professionals in the industry before making a final decision. There are more and more debt settlement counselors every day, as the economy continues to worsen and ordinary borrowers begin to understand (especially in light of recent legislative restrictions) the different alternatives available, and it only takes a moment for the professional to analyze a debtor’s credit report and offer advice as to the best option. Certainly, there’s a wide collective of Americans with debts no honest man could pay, and bankruptcy protection’s still needed to help the truly unfortunate. For most of us, though, the negative connotations of bankruptcy, particularly now, far outweigh the chance of debt liquidation. It’s best to investigate all possible scenarios, but the days of guilt-free debt liquidation are over.

The Truth About Bankruptcy

2009-07-19T12:29:00.001-07:00

Bankruptcy-try it When Debt Relief Options Take You No Where

2009-07-19T12:28:00.000-07:00

Bankruptcy is a Federal Law, whereby the assets of an individual or an organization are handed over to a trustee so that the outstanding debts can be paid off. Bankruptcy is usually declared by debtor(s) when more money is required to be paid back than the debtors can afford to shell out. Financial experts suggest that bankruptcy should be treated as one of the last debt solutions.
People with debt problems try to find a solution on their own. They try out different debt solutions like debt consolidation, debt settlement and debt management program. However, it has been proved that if you take the assistance of a professional, the process of getting out of debt becomes faster.
Opting for debt help can save you from the fury of the collection agencies. The collection agencies are known to harass debtors to no end this further agonizes a debtor.
Changes brought about by the new bankruptcy law:
In the last couple of years, many changes have taken place in bankruptcy laws. The new bankruptcy law introduced recently brought about certain key changes. They are as follows-
A legitimate reason for filing for bankruptcy-
Earlier you could file for bankruptcy as per your requirements and your whims. Filing for bankruptcy was not difficult and you could start all over again if you had not been maintaining a very healthy financial status. However, with the introduction of the new bankruptcy law, several changes have set in and you are required to have a good reason to file for bankruptcy. A good reason may include someone's death, an unexpected event etc. The reason should be legitimate enough for you to qualify.
Waiting period-
Previously, if you had been facing debt problems, you could file for bankruptcy more frequently. As per the new bankruptcy law, the waiting period before you can file for bankruptcy again has been greatly increased.
Types of debts qualifying for bankruptcy-
In previous years, a debtor could just wipe out all his debts by filing for bankruptcy. According to the new bankruptcy law, only certain type of debts can be wiped out and a debtor has to pay for the debts that do not qualify under the new bankruptcy law.
Approval from a bankruptcy judge-
The decision of filing for bankruptcy no longer rests in your hands. A bankruptcy judge has to first approve that your financial condition is bad enough for you to file for bankruptcy. It is the decision of the judge alone whether you should file for bankruptcy or not.
However, if it is found that you are eligible for filing for bankruptcy, you should always seek help from a trained professional handling such cases.
Statistical data indicating the rise in the incidence of bankruptcy filings-
The period 30th June 2007 to 30th June 2008 manifested the following changes-
Filing for Chapter 7 bankruptcy increased by 36.7% Business related bankruptcies increased by 41.6%.
Non Business bankruptcies increased by 28.4%
Total filings for bankruptcy (business as well as non business) was 617, 660 in 2006.
As of 2007 total filings recorded were 850, 912. This included both business as well as non business filings.
Statistics given here indicates that the incidence of filing for bankruptcy has increased over the years. Since the laws pertaining to bankruptcy was more lenient in the previous years, majority of the debtors seeking debt solutions used to file for bankruptcy. However, the new bankruptcy law lays down stringent rules and the decision to file for bankruptcy is at the discretion of the judge handling bankruptcy.

How to Handle Bankruptcy in Minnesota

2009-07-19T12:25:00.003-07:00

It’s a disaster if someone is insolvent and unable to pay their dues. Declaring bankruptcy is a disaster and understandably causes a bout of depression. But if due to circumstances, someone reaches a situation in which they have to declare themselves bankrupt, it must be done with all due care and diligence. The Minnesota Bankruptcy law gives people the facility to declare bankruptcy in two ways: Chapter 7 bankruptcy, and Chapter 13 Bankruptcy. In fact these bankruptcy options are available almost all over America, informs one Minneapolis Bankruptcy Lawyer.Declaring a chapter 7 bankruptcy is often the fastest and the easiest way to get the deed done and over with. However, according to Minnesota Bankruptcy law, Chapter 7 bankruptcy can be declared only if the income of your household is below the Median income for Minnesota. If you feel you’re having trouble understanding the laws, it’s better to hire a Minneapolis bankruptcy lawyer who can guide you with the bankruptcy process.In chapter 7 bankruptcy, the bankruptcy court attaches trustees who take control of your assets and negotiate with the creditors. The creditors may also move the court to halt the bankruptcy proceedings, but if everything is in order, then you will be able to proceed easily. Even after you declare bankruptcy Minnesota bankruptcy laws do allow you to keep some assets with yourself. This can include essentials like your home, vehicle, life insurance, etc. There’s an upper cap to every asset that you can keep, and a Minneapolis bankruptcy lawyer can study your assets and tell you how much you’ll be able to keep after filing for bankruptcy.If the bankruptcy court feels that you’re in a position to pay off your debt, and have a higher income, they can prevent you from filing chapter 7 Minnesota bankruptcy. In this case you may file for chapter 13 bankruptcy. Under this system you’re allowed to pay off your debt over a period of three or five years. So your debts are delayed or re-organised instead of being wiped out. According to the Minneapolis bankruptcy lawyer we consulted, this bankruptcy option is available to all individuals and sole proprietors.Under chapter 13 bankruptcy, you’re not free of debt, and you will have to pay the creditors after you’ve paid for necessities like food, shelter, etc. The trustee appointed by the court will review your income and prepare a payment plan for you. You’ll then have to stick to the plan, and make sure all payments are made. In case you do not make the payments, your assets may be taken over by your creditors as per the Minnesota bankruptcy law, the Minneapolis bankruptcy lawyer told us.If you’re able to pay the planned amount as per schedule, the rest of your debts are written off, and you’re free from credit again. So this type of bankruptcy plan can help you hold on to some of your precious assets while you struggle to get your life back on track, or wait out the bad period. Remember to consult a qualified Minneapolis bankruptcy lawyer if you wish to make your Minnesota bankruptcy experience easier. After all, when you have so much trouble already on your, it is wise to leave the bankruptcy hassles to an expert who will give you sound and experienced advice.

Bankruptcy Litigation in Usa

2009-07-19T12:24:00.002-07:00

BANKRUPTCY LITIGATION IN USA

INTRODUCTION

A bankruptcy case is a special kind of a civil case, involving people or companies who can no longer pay their debts.

Congress has established a special court, called as the bankruptcy court to adjudicate bankruptcy matters. Bankruptcy protects both the debtors and creditors

HIERARCHY OF COURTS

Ø US Supreme Court

Ø The Circuit court of appeals

Ø The district courts or bankruptcy appellate tribunal (BAP )

Ø The bankruptcy courts

GOVERNING LAWS

Ø Title 11 Federal rules of bankruptcy procedure

Ø Title 18 Crimes (sec.151 through 158 deals with bankruptcy fraud and other bankruptcy crimes). E.g.

Ø Title 26 IRC Implication of tax avoidance

Ø Title 28 Judiciary and judicial process

Ø Federal rules of appellate procedure

Ø Federal rules of Evidence.

BANKRUPTCY JUDGESHIPS

The judges to the bankruptcy courts are appointed by the judges of US circuit courts for such circuits for the period of 14 years. Currently there are 324 judgeships in the US.

THREE MAIN CHAPTERS ON BANKRUPTCY

There are mainly three chapters under the bankruptcy law in USA.

Chapter 7: liquidation

Chapter 11: Reorganization

Chapter 13: Adjustment of debt of the persons, having regular income.

CHAPTER 7: LIQUIDATION

Bankruptcy under this chapter offers a fresh start for the individuals. In this chapter, most of the debtor’s property will be sold to raise the amount of the creditor. If the value of the asset is more than the debt owed, the remaining amount will be paid to the debtor.

After, 2005 enactment by the congress, it is mandatory to pass the Means test in order to qualify for the filing bankruptcy under chapter 7.

How the case move through under chapter 7

1. Petition

The case begins with the filing of voluntary petition with the clerk of the bankruptcy court. Debtor must also file the following documents shortly after filing the petition, they are

1. the list if creditors

2. the schedule of assets

3. the statement of financial affairs

If the debtor is not in position to pay the fees at once, he can request for payment in installments.

It is not necessary that always the creditor must file the petition. Even the creditors can initiate the bankruptcy proceedings; these are called as the involuntary petitions. If the debtor has not more than 11 creditors, then the one creditor can file an involuntary petition. If it is more than 12 creditors, three creditors must join together to file a petition.

2. Automatic stay

Once the petition filed before the bankruptcy court, there will be an automatic stay. It stays the suits, claims, appeals filed against one another before or after

3. Trustee selection

After filing a voluntary petition in the bankruptcy court, a notice will be sent to all the creditors. The creditors are required to be present at the trustee selection. Then the case will be assigned to bankruptcy judge and added to the docket of the US Trustee. US trustees maintains the list of case trustees.These case trustees will liquidate the debtor property at the auction or at the private transactions and collect the money, deposit it in the account maintained for that purpose.

4. Creditors meeting

It is also called as the Sec.341 meeting. Interim trustee will preside over this meeting. After a notice issued to the creditors, creditors have to come before the court and attend the meeting. If the creditor is not found, it will be published in the newspapers on which date the creditors have to attend the court.

It is compulsory that the debtor must be present at the meeting. The debtor will be put under oath and he will be asked several questions by the creditors. The purpose of this meeting is get to know hidden assets or undervalued assets of the debtor. And finding out is there any claim by the debtor which would yield more money if pursued. And the goal is to accumulate more money for the bankruptcy estate.

5. Liquidation of assets

After the creditors meeting, the case trustees will sell the asset of the debtor either at the auction or at he private transactions.

If the debtor is the business, it will cease to exist. If it is an individual he will be discharged. However certain debts are not dischargeable such as the alimony, taxes etc.

6. Collection of the bankruptcy estate

Once the assets are liquidated, case trustee will deposits the amount in the bank account, along with any other amount accumulated from the legal suits.

7. Distribution of the bankruptcy estate

After the deposit of amount in the account, the amount deposited will be distributed among the creditors.

Majority of the cases are no asset cases. If there are no assets to distribute then the case trustee will simply file before the court a report no assets to distribute.

Even if there is money to distribute, sometimes the creditors would not get the whole amount which is due to him by the debtors. Sometimes some creditor will get less, some creditors will get more.

The question arises in our mind is that, who will be paid first. At the stage of distribution, the administration of the estate such as the professional fees of the trustee, attorney or accountant appointed by the bankruptcy estate will be paid first.

8. Claims

There are two kinds of the claim and creditors in the bankruptcy. One is the Secured claims and other one is an unsecured claims. Secured claims are one that gives the creditor an interest in property as assurance of payment. For example people will mortgage house in secure of loans. If the loan is not paid there will be foreclosure and sale of the house. Holder of unsecured claims cannot look into any such payments.

Under unsecured claims are again divided into two: Unsecured priority claims and unsecured non priority claims. Unsecured creditors who have priority must be paid first before paying to unsecured non priority claims.

In Campbell v. Countrywide Home Loans, Inc., 2008 U.S. App. LEXIS 21405 (5th Cir. October 13, 2008, Filed)

It was held that an automatic stay serves to protect the bankruptcy estate from actions taken by creditors outside the bankruptcy court forum, not legal actions taken within the bankruptcy court.

9. Conversion

A chapter 7 debtor has right to convert the chapter 7 case to one under chapter 11 or 13 at any time during the proceedings.

In re South Star Oil Co.,2008 Bankr. LEXIS 2426 (Bankr. D.Or., September 15, 2008, Decided)

Held that a cause for conversion or the dismissal includes a number of criteria, including substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation

In Toibb v. Radloff, 501 U.S. 157 (1991)

In this case the voluntary petitioner, after discovering stock in an electronic power company, has substantial value, decided to avoid its liquidation by seeking conversion to chapter 11. His motion was granted and he was allowed to file a reorganization plan. But the court dismissed his petition finding that he did not qualify for relief under Chapter 11 because he was not engaged in an ongoing business. The District Court and the Court of Appeals affirmed.

10. Dispute resolution

The petition may be contested after filing the bankruptcy petition through the adversary proceedings. for example one party may initiate proceeding against the other by filing the complaint and questioning the validity of the petition such will be adjudicated if the parties are willing to adjudicate. There may even be motions objecting to the discharge of the debtor, objections to the sale of debtor’s property.

In Dewsnup v. Timm et al].

Petitioner Dewsnup, the debtor in a case under Chapter 7 of the Bankruptcy Code, filed an adversary proceeding, contending that the debt of approximately $120,000 that she owed to respondents exceeded the fair market value of the land securing the debt and that, therefore, the Bankruptcy Court should reduce respondents' lien on the land to the land's fair market value pursuant to 11 U. S. C. § 506(d), The court determined that the then value of the land in question was $39,000, but refused to grant the requested relief and entered a judgment of dismissal with prejudice. The District Court and the Court of Appeals affirmed.

Held: Section 506(d) does not allow Dewsnup to "strip down" respondents' lien to the judicially determined value of the collateral, because respondents' claim is secured by a lien and has been fully allowed pursuant to § 502 and, therefore, cannot be classified as "not an allowed secured claim" for purposes of the lien-voiding provision of § 506(d). Pp.414-420.

11. Discharge and closing of case

After the property of debtor is sold and distributed among its creditors, the debtor will get discharged. However the debts like alimony, child support and certain taxes which are due to the government cannot be get discharged.

In Roe v. College Access Network , 2008 U.S. App. LEXIS 21362 (10th Cir., October 9, 2008, Filed)

It was held that a permanent medical condition will certainly contribute to the unlikelihood of a debtor earning enough money to repay her student loan debt, but such a condition is not a prerequisite to discharging the debt.

In re Hlavin, 2008 Bankr. LEXIS 2397 (Bankr. D. Ohio, September 30, 2008, Decided)

It was held that under 11 U.S.C.S. § 707(b)(1), the court may dismiss a case filed by an individual debtor under Chapter 7 whose debts are primarily consumer debts if it finds that the granting of relief would be an abuse of the provisions of Chapter 7.

12. Appeal

When there is a discharge of the debt or dismissal of the bankruptcy petition, there may be an appeal. If the petition dismissed, the debtor may go an appeal. If there is discharge without any payment to the creditors, the creditors may go an appeal. Appeal may be preferred either to the district court or to the bankruptcy appellate panel. Where there is no bankruptcy appellate panel, appeal is always preferred to the district court.

CHAPTER 11: REORGANIZATION

This chapter is known as the business reorganization chapter. Sometimes individuals may also seek remedy under this chapter. Once the petition is filed under this chapter the debtor shall also file plan of reorganization.

Debtor is also required to file following documents along with the voluntary petition.

Ø Schedules A through J

Ø Summary of Schedules

Ø Statement of Financial Affairs

Ø Matrix

Ø Statement of No Prior Filing

Ø List of Equity Security Holders

Ø Corporate Resolution (when applicable)

Ø Pro Se Debtor's Statement

How the proceedings takes place under chapter 11

1. Petition

There will be a voluntary or involuntary petition

2. Automatic stay

There will be an automatic stay after the petition is filed.

In re Forletta, 2008 Bankr. LEXIS 2491 (Bankr. D.N.Y., October 10, 2008, Decided) Held: debtor could not extend the automatic stay under 11 U.S.C.S. § 362(c)(3)(B) because the debtor's earlier Chapter 7 proceeding was closed on a final decree and discharge under 11 U.S.C.S. § 727 and § 362(c)(3)(B) did not apply unless the case had been dismissed under 11 U.S.C.S. § 707. Extension of stay was warranted under § 362(c) (3)(C).

3. Continued control by management

As in chapter 7 case, the US trustee doesn’t appoint a case trustee; instead the US trustee monitors the progress of the case. He reviews the financial reports of the debtor, who continued to operate the business and adequacy of the disclosure statement and reorganization plan.

4. Role of the creditors committee

There will be an unsecured creditors committee appointed by the US trustee who is willing to serve monitor the case. Unsecured creditors cannot look at he specific property of the debtor.

Difference secured claim and unsecured claim

A secured claim is one that gives the creditor an interest in property as assurance of payment, such as a mortgage on the house to secure a home loan; the holder of an unsecured claim can’t look to any specific property of the debtor for payment. The committee negotiates with the debtor to develop a plan that will protect the interests of unsecured creditors. Because there is no case trustee in a Chapter 11 case, the committee has the authority to perform investigative functions, such as reviewing the debtor’s assets, liabilities, and financial conduct to determine its ability to continue in business.

5. Creditors meeting

It is also called as the 341 meeting. It may take place within 20 to 40 days of filing the bankruptcy petition. Debtor takes an oath in this. Usually US trustee or the assistant presides at the 341 meeting.

6. Plan of reorganization

It is a Debtor’s proposal to repay the amount in certain period. Debtor files it in the court for its approval.

7. Disclosure and disclosure statement

The debtor must file the disclosure statement which must be approved by the court. Once this filed there will be a disclosure hearing. Sometimes the creditors may oppose to it. Once the disclosure statement is approved he or she will also set a time limit on voting for or against the reorganization plan.

8. Voting and confirmation

Once the debtor has the reorganization plan the court must approve or confirm the plan. Before confirmation hearing, each class of creditors votes separately by mail on whether to accept the plan. If a majority of the voters in each class and holders of two-thirds of the amount of claims in each class approve the plan, the court will generally confirm the plan. The plan then becomes binding on all of the pre confirmation creditors, whether they voted for or against it.

If majority of the creditors did not approve the plan, then the debtor may attempt a cram down.

9. Discharge

After the reorganization plan is confirmed the debtor gets a discharge. Most claims for pre confirmation debts are wiped out. The debtor only has to pay the debts spelled in the plan.

Custom Mortg. Solutions, Inc. v. Hood (In re Hood),

2008 Bankr. LEXIS 2474 (Bankr. D. Ill., October 2, 2008, Decided) A plaintiff has the burden of proof by preponderance of the evidence to show that the debt in question is non-dischargeable under 11 U.S.C.S. § 523(a)(6).

In re Timmerman, 379 B.R. 838, 2007 Bankr. LEXIS 4055 (Bankr. D. Iowa, December 10, 2007, Decided) Debtors were estopped from seeking dismissal of their bankruptcy action under 11 U.S.C.S. § 707(a) because they falsely stated that they had obtained credit counseling and had taken advantage of the bankruptcy laws for 21 months, and granting their motion would have prejudiced their creditors and impaired the integrity of the bankruptcy system.

10. Paying creditors

The debtor has to make payments according to the reorganization plan. If not met accordingly, the creditors can seek the liquidation of the debtor by moving to convert the cases to chapter 7, or they may sue to force the debtor to make the plan payments.

11. Dispute resolution

Suits, contesting matters will be resolved if any.

12. Appeal

Appeal is preferred either to the bankruptcy appellate tribunal or to the district courts.

CHAPTER 13:ADJUSTMENT OF DEBT OF THE PERSONS, HAVING REGULAR INCOME

Under this chapter debtor develops a plan, how he or she proposes to repay creditors. By agreeing to use future income for plan payments, the debtor is able to keep his or her property.

Difference chapter 7 and chapter 13

In chapter 7 the debtor property is liquidated but it does not include future income.

But in the chapter 13 debtors is allowed to keep his property and the debtors have only 15 days to propose a plan, in contrast to the 120 days of chapter 11 debtors.

How the proceedings takes place

1. Petition

Debtor files a voluntary petition before the court. He is required also to file following documents:

Ø Schedules A through J

Ø Statement of Financial Affairs

Ø Matrix

Ø Statement of No Prior Filing

Ø Plan

Ø Disclosure of Compensation - FRBP 2016(b)

Ø Pro Se Debtor's Statement

Ø Filing fee

2. Automatic stay

Once the petition is filed before the court, every suit concerning the debt recovery will be stayed.

.

3. Creditors meeting

It is also called as the 341 meeting. It may take place after the 15 to forty days after the petition is filed. Both creditors and the debtor attend it.

Chapter 13 trustees or Standing trustee presides over the 341 meeting.

4. Confirmation

Before the debtors plan takes effect, the court must approve the plan. It is the standing trustee’s job to review the plan and advice the court whether it seems workable or legal. Standing trustee has to recommend the plan. Creditors have no right to propose a new plan but they can oppose the plan.

5. Paying creditors

Within thirty days after filing the plan, the debtor must start paying the creditors. Debtor pays it to the trustee who then pays it to the creditors as provided for in the plan. The debtor has up to five years to pay of his debts.

6. Dispute resolution

Adversary proceedings if any contested matters will be resolved at this stage.

7. Discharge

After completion of plan payments, the debtor will receive a discharge. It discharges all debts except the long term home mortgage debts, alimony, child support obligations, and certain education loans.

8. Appeal

Appeal may preferred either to the district court or to the BAP

Bankruptcy in Connecticut

2009-07-19T12:24:00.001-07:00

Though the Connecticut economy has weathered the national financial crisis better than most parts of the country, residents have become increasingly worried about carrying unhealthy amounts of consumer debts in such uncertain times. In the face of ever spiraling credit card balances, too many Connecticut borrowers we have spoken with see no other option beyond bankruptcy protection. To be sure, for the most desperate debtors, Chapter 7 debt elimination may well be the best – or, indeed, the only – option available to clear their accounts and start fresh (no matter how long the process may take). Alas, legislation passed four years ago by the United States Congress dramatically altered both the protections that bankruptcy could offer ordinary individuals and their treatment should Chapter 7 bankruptcy in Connecticut even be rendered available. Much as the federal statutes were changed because of pressure from political action committees bankrolled by the credit card companies, it cannot be said that consumers had not taken advantage of past bankruptcy statutes to exploit the former system. With lenders opening accounts to seemingly every Connecticut borrower looking for an excuse to spend freely and without consequence, too many households found themselves unable to pay back foolish purchases. There’s always been a need for bankruptcy protection in America, but, alongside the new opportunities for credit, consumers – in Connecticut and across the nation – took untoward advantage of the spending freedoms and paved the way for current restrictions.
To be sure, especially for those Connecticut borrowers who’ve faced unusual torments – whether loss of employment or hospitalization or similar unforeseen tragedies – Chapter 7 bankruptcies still serve as a seawall stemming the onrushing tides of debts. Those consumers filing for bankruptcy protection this very moment may have to pay a bit more for credit counseling classes (certificate required before the Connecticut court clerk shall even process the bankruptcy petition), and, given the continually more detailed paperwork involved, experienced bankruptcy attorneys are more important than ever – with prices to match their newfound value. Furthermore, most taxes, all student loans, debts that came as a result of criminal fraud, and all familial obligations from alimony to child support shan’t be touched by any governmental protection. Chapter 7 bankruptcies in the state of Connecticut will not also touch any purchases more than five hundred dollars that had been made in the last three months before the bankruptcy petition is filed. More to the point, the Chapter 7 bankruptcy proceedings – even if the borrowers will successfully argue eligibility to the Connecticut court trustee and genuinely manage to liquidate those debts that would be considered viable under current rules – actively look to take whatever possessions from the filers are open to seizure by law.
Whenever a borrower declares bankruptcy in Connecticut, the individuals retain the option of invoking either federal or local bankruptcy exemption to protect their personal property. As yet another example of the importance of attorneys trained in bankruptcy law, and, considering the current economic problems, law firms have been switching the emphasis of their practices right and left. Every Connecticut debtor should take special care researching their lawyers’ level of experience regarding the matter. Those legal professionals well trained in their craft should be able to guide their clients through the Chapter 7 proceedings with a minimum of loss (though some damages must be assumed, regardless), and, most especially, the attorneys chosen should be more than familiar with the distinctions between the exemptions recorded under Connecticut state law as opposed to the severely more limited options granted by the federal government. These statutes are intended to help borrowers keep hold of their more prized possessions, but, since the equity of all property will be subject to a somewhat arbitrary estimation of their replacement value (as opposed to, in recent years, before the past legislation, the far more forgiving resale value), all borrowers have to consider the potential fluctuations.
Obviously, we cannot list every single Chapter 7 bankruptcy exemption that’s recorded under Connecticut law. Your authors would be remiss, once again, if we pretended to do more than offer merely an overview of the larger guidelines available within the Connecticut bankruptcy code. At the same point, however, every consumer interested in the bankruptcy debt elimination alternative should have some knowledge about the protections available. Nothing’s guaranteed, of course, as long as so much depends upon the whims of the bankruptcy trustee randomly selected by the Connecticut judicial system, but all borrowers may as well have an awareness of what may be seized. Each state, for example, maintains a so-called homestead exemption, and, in Connecticut, the borrowers are allowed seventy five thousand dollars equity of their primary residence whether that may be home, condo, trailer, or house boat. Similarly, fifteen hundred dollars of equity for an automobile or any motor vehicle shall be protected by the state of Connecticut, and, if a married couple files a petition for Chapter 7 bankruptcy jointly, the exemption’s raised to three thousand dollars (the home exemption, alas, is not doubled for spouses).
Further, Connecticut law protects household furnishings – from living room tables to couches to bedroom linens – provided there’s nothing valued above ordinary means. Funds from life insurance benefits granted the filer or filers will be secured for as much as the trustee (based upon the Internal Revenue Service guideline for Connecticut) deems necessary for support. The treatment of retirement plans in Connecticut, on the other hand, varies greatly. Pensions and any dividends from stock market investments or similar annuities could reasonably be expected to be guarded so long as the courts believe the retirement plan to be necessary income. In the same way, all tools and materials related to the trade of the consumers filing – up to a certain amount, depending upon the profession and the objects involved – should not be threatened, and, as long as taxes or familiar support are not already past due, unemployment benefits from the state of Connecticut will continue unabated through bankruptcy. Worker’s compensation and any money due the newly bankrupt resulting from injury shall continue to be paid regardless of debt presuming the attorneys do their jobs properly. Connecticut residents are virtually the only Americans to be guaranteed protection of such debts, and they need to make absolutely sure that their lawyers are certain of all local loop holes. We live in an especially forgiving state, to be sure. Connecticut, uniquely, offers a “wildcard” exemption for their residents petitioning for Chapter 7 bankruptcy protection that vouchsafes personal property of any sort up to one thousand dollars above and beyond the preceding exemptions. While this “wildcard” will still be subject to the whims of the courts, remember that all actual values (even family heirlooms) are based upon governmental oversight. Connecticut debtors truly in need of debt liquidation are certainly better off than their fellow citizens residing in less enlightened states, but the potential disadvantages of bankruptcy must still be kept in mind.
Chapter 7 bankruptcies truly are a last ditch measure for only the most desperate of borrowers. Despite the Connecticut exemptions, potential seizure of assets by the courts to auction with proceeds remunerating lenders remains a constant risk. Much as your authors recognize the current economic difficulties affecting Connecticut and the nation at large, bankruptcy protection’s no longer a catch all for all problems that may affect consumers who’ve spent unwisely or fallen upon hard times. Especially considering the other debt relief options now available to Connecticut borrowers (and the expenses of even an initial consultation with bankruptcy lawyers), only those consumers truly without another alternative should even think about braving the rigors of Chapter 7 debt elimination, but, at the same point, consumers should examine all of the debt management strategies just as thoroughly as they would Connecticut bankruptcy protection. Consumer Credit Counseling, for example, has been largely debunked in the past few years after media watchdogs and governmental investigators discovered that CCC firms – even the ones announcing themselves as non profit – actually take more money from the credit card companies they’re supposedly fighting against than their genuine consumer clients. Similarly, after the implosion of the mortgage loan industry and the falling real estate values throughout Connecticut and all of New England, debt consolidation based upon equity loans should be avoided no matter how supposedly low the interest rates offered or smooth the loan officer’s sales pitch.
The debt settlement strategy, though it may seem faintly miraculous to Connecticut borrowers unfamiliar with the program, isn’t actually that far different from Consumer Credit Counseling or other debt consolidation approaches rather more publicized within the greater Connecticut area. Well trained debt settlement negotiators, generally (since this is a relatively new field) trailing experience in the financial planning or credit counseling economic sectors, who often work in tandem with attorney or economic advisors, argue for surprisingly substantial reductions to their clients unsecured debt accounts and our Connecticut respondents have regularly reported immediate credit card balance cuts of more than fifty percent. To successfully argue their point, the debt settlement firm effectively takes over their Connecticut clients’ accumulated debt loads. Under the new debt settlement plan, you will make regular payments to the firm, which in turn will pay back the creditors until you are completely without credit card and other unsecured debts in less than five years or sixty months. While, unfortunately, not every Connecticut borrower would be accepted into a debt settlement program – not all lenders shall agree to participate in negotiations – the potential for assistance absent the costs and loss of property Chapter 7 bankruptcy now entails should lead every wise Connecticut resident worried about their spiraling debt loads to at least investigate the approach. Every debt situation is different and, without analyzing the borrowers’ specific situation, it would be irresponsible for your authors to recommend one debt relief strategy above another. However, after talking to countless Connecticut debtors who’ve tackled their unpaid loans (both successfully and otherwise), we certainly would hope that appropriate Connecticut residents attempting to eliminate their credit card balances at least look into debt settlement before rushing headlong toward a potentially disastrous bankruptcy solution.

Bankruptcy Questions

2009-07-19T12:23:00.006-07:00

Filing for bankruptcy after those endless debt issues may seem as the last resort. However, it might be more of a fearful act. Bankruptcy is a hard-nosed procedure with almost permanent impact. The menacing after effects of bankruptcy, which often are not properly assessed before filing for bankruptcy tend to confuse during the process, thus impelling many to cancel the proceedings.
Debt issues are difficult to deal with and even more strenuous are the problems which typically complement the financial agonies; however, Filing for bankruptcy is not the very perfect answer to curb miseries. Instead, Filing for bankruptcy might just aggravate the issue, leading to even greater, unmanageable troubles. Therefore, before beginning with the official bankruptcy Filing act, read on to find all about bankruptcy and thus refrain from the insidious obligations.
Bankruptcy - The Concept
In the most positive terms, bankruptcy is a legal proceeding that allows individuals and companies to start over again without managing their debt obligations. When large corporations opt for bankruptcy, the leading media representatives talk about it, while when average earning people apply for one, they are an addition to the statistical reports. In the UK, both the stated bankruptcy filing announcements are a norm, thus making bankruptcy sound as a very tempting debt solution route. To further entice the sufferers of the debt, bankruptcy promises to cease all financial stress, and suggest a way out with less to pay, thus eliminate all debt issues.
Bankruptcy has a Host of Harmful Consequences
If you are just thinking about filing for bankruptcy, then consider the matter deeply, because there is much more to it than the benefits stated above, Bankruptcy also has a host of disadvantageous consequences. Once an entity begins filing for bankruptcy and thus declares the bankrupt is devoid of assets of value such as a house or other equity. Businesses could be sold, including machinery to repay creditors. Those declared bankrupts may have accommodation issues, with landlords not too delighted to accept them as tenants. Remember, bankruptcy, is a legal procedure, and therefore is recorded by bankruptcy law. Bankruptcy stays in files for years (see enterprise act for updates) and therefore negatively impacts financial transactions until the same time. The image is not very helpful in envisaged career moves as well. Employers too are apprehensive of those with bankruptcy records in their credit files. Of course, seeking and obtaining competitive credit terms can be just a dream after filing for bankruptcy.
Bank current accounts suddenly seem unobtainable. And after all this mess, there are certain debts which even bankruptcy cannot deal with and there are secured creditors, who have every right to their share, even after the bankruptcy has been declared.
Bankruptcy offers a chance to start again, but there may not be many resources to start again. For more useful information

Bankruptcy Laws

2009-07-19T12:23:00.003-07:00

The passage of the tough new bankruptcy laws in 2005 was supposed to benefit consumers in the form of reducing losses to lenders by making it harder to file bankruptcy. But two new reports released this week show that the new laws not only cost consumers more in terms of credit card debt, but may actually be encouraging greater losses to banks due to increased foreclosures.
According to new research, after the 2005 bankruptcy reform went into effect, both personal bankruptcy filings and credit card company losses sharply declined.
At the same time, while upfront annual fees on credit cards have been all but eliminated, fees have been climbing and becoming less transparent over the years, and there is no evidence that the 2005 bankruptcy reform reversed this trend...over-limit fees and late fees have been climbing since well before bankruptcy reform, and that this trend continued after the 2005 bankruptcy reform.
Industry consolidation in the credit card market enabled the top card issuers to avoid losses from "price wars" by reducing rates to attract new customers.
The credit card industry might also be able to avoid price competition because of complex, multi-tiered pricing that can make it difficult for customers to comparison shop. These fees and interest rates—complex in their own right—are presented in a form that is difficult to understand. Customers faced with such complex pricing systematically miscalculate and underestimate the cost of credit card debt.
A 2006 report from the Government Accountability Office (GAO) that found not only that bank fees and penalties are continuing to rise for card holders, but that credit card disclosures and explanations of fees are deliberately written in manners that make them hard to understand. The GAO also recommended in a separate report that credit card issuers use existing technology to customize card disclosures to individual cardholders, particularly those with high balances or frequent late payments.
The fact that after bankruptcy reform, interest rates and fees continued to rise and grace periods continued to fall, even though credit card companies reaped tremendous gains from declining bankruptcy losses demonstrates that the credit card market is not price-competitive. This lack of price competition explains why the benefits of bankruptcy reform accrued exclusively to credit card lenders and were not shared with the average American family, and why...bankruptcy reform was a failure.
Negative Impact
Another effect of the bankruptcy laws is the increase in foreclosures and defaults by mortgage holders who can't afford to make payments on their homes. The more stringent bankruptcy code, by restricting financial relief available under the bankruptcy code and by increased the costs of filing bankruptcy, appears to have increased the number of individuals walking away from their homes, their mortgages, and their other financial obligations without seeking the protection of the bankruptcy court.
Under the new law, most individual filers would not qualify for Chapter 7 bankruptcy, which allows for the liquidation and erasure of most debt. Instead, they would be forced to file under Chapter 13, which requires regular payments of at least some of their debt to creditors.
The more stringent requirements of the new laws may be causing homeowners to "walk away" and let their homes go into foreclosure rather than attempt to file for bankruptcy. The restrictions on bankruptcy filings and subsequent increase in foreclosures puts downward price pressures on neighborhoods where many homes are in default or foreclosed upon.
One of the great lessons and ironies associated with [the new bankruptcy law] is that the new law by increasing the dollar value of assets susceptible to default has weakened many of the financial companies that sought the more stringent bankruptcy code.

Bankruptcy Tips And Helpful Alternatives

2009-07-19T12:22:00.000-07:00

Before you file bankruptcy, it is a good idea to look into other alternatives if at all possible. New bankruptcy laws make it more difficult to file than it used to be.
Why Has Filing For Bankruptcy Doubled?
From the period of 1994 to 2004, filing for bankruptcy has doubled. Bankruptcy filing has spun out of control with consumers being targeted with easy credit. This has become a major cause for bankruptcy cases.
New Bankruptcy Laws?
There is now a new law for bankruptcy that was passed called the "Bankruptcy Abuse Prevention and Consumer Protection Act". People struggling to pay their credit debts are now going to have to deal with this new bankruptcy law.
Bankruptcy Can Stay On Your Credit Report For 10 Years
Filing for bankruptcy can be on your credit for up to a decade. It's a good idea to look into alternatives for bankruptcy. Buying anything on credit can be a real challenge for many years after you file bankruptcy.
Alternatives To Filing Bankruptcy
Contacting creditors is an alternative to bankruptcy. Instead of filing for bankruptcy, you work out payment options with your creditors. In many cases they are very willing to work with you. It's to their advantage to keep you as a customer. The creditors know the alternatives for bankruptcy will bring them more profits if you don't file for bankruptcy.
Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.
You may also consider a debt workout for bankruptcy alternatives. With a debt workout, an attorney contacts your creditors and makes arrangements. In most cases the monthly payments will be less than if the credit account was settled in full. For some cases they want the payment in full, but over a longer period of time than originally stated on the credit agreement.
Bankruptcy alternatives are a good idea to consider, before you rush off to file for bankruptcy. If you look into some of these alternatives, at least you will know you tried your best to avoid bankruptcy. Having bankruptcy on your credit report for 10 years can be a long time.
How To Find A Bankruptcy Lawyer?
If you have decided there is no alternative to filing bankrupty,you may be asking yourself, "how do I find a good bankruptcy lawyer? The best way to find a good bankruptcy lawyer is through referrals. Family members and friends who filed bankruptcy in the past can refer you to a good bankruptcy lawyer. The yellow pages in a phone book is another great place to find reputable bankruptcy lawyers. Another invaluable place to find a good bankruptcy lawyer and services in on the Internet. When you search for a lawyer, try to find a lawyer that deals with your type of bankruptcy. You can get free advice with the first meeting.
Is The Law Firms Bankruptcy Lawyer Experienced?
Find out if your type of bankruptcy case is right for the law firms lawyer. Has the bankruptcy lawyer handled similar cases in the past? Take time to look over the alternatives to bankruptcy with your lawyer. There may be a way out of bankruptcy. A good bankruptcy lawyer can give you free advice on what chapter bankruptcy you should file. Bankruptcy lawyers will have you fill out a bankruptcy evaluation to see what is right for your debt and financial situation. To save yourself from wasted time and frustration, discuss in detail, options available to you with your bankruptcy lawyer.
What Information Will I Need For A Bankruptcy Lawyer?
With your first visit, it's important to bring everything you can on the first consultation. You will need a list of all the creditors and how much you owe for your bankruptcy lawyer to consider. This includes any insurance, medical bills, auto loans, taxes, student loans and any personal loans. Your bankruptcy lawyer can give you the advice you need with this important information. This will make the filing process easier if you do decide to file bankruptcy.

Bankruptcy Law and Attorneys

2009-07-19T12:21:00.002-07:00

Bankruptcy law is a federal statutory law contained in title 11 of the United States codes. Congress passed the Bankruptcy Code under its Constitutional grant of the authority to establish a uniform law on the subject of bankruptcy throughout United States. States may not regulate bankruptcy though they may pass the laws that govern other aspects of the debtor-creditor relationship.
Bankruptcy allows a debtor, who is unable to pay his creditors to resolve his debts through the division of his assets among his creditors. Certain bankruptcy proceedings allow a debtor to stay in business and use the revenue generated to resolve his or her debts. A United States Bankruptcy court supervises bankruptcy proceedings and is where bankruptcy is litigated. Proceedings in bankruptcy courts are governed by the Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress.
How Do Bankruptcy Proceedings Work?
Informally called "straight bankruptcy," The most common type of bankruptcy proceedings liquidation involves the appointment of a trustee who collects the non-exempts property of the debtor, sells it and distributes the proceeds to the creditors.
Chapter 11 is reorganization. In this chapter the debtors are allowed to continue its operations while paying their debts. The debtor can either enter the bankruptcy proceedings or it can be initiated by the creditors. The creditors may not seek to collect their debts outside the proceedings at the most part, after the bankruptcy proceedings is filed. The latest revisions of the bankruptcy law are now in effect. Before the debtor can file a bankruptcy case, they should undergo credit counseling, budgeting and debt managements before the debt is wiped out.
Bankruptcy Attorney - Choosing the Right One
Bankruptcy attorneys explain the applications of bankruptcy laws and its applications. If the debtors or their lawyers set off the bankruptcy it is called a voluntary bankruptcy. If the courts initiate the bankruptcy it is called an involuntary bankruptcy. A good bankruptcy attorney will take all the problems away from the bankrupt person or company and deal with every aspect of the bankruptcy.
6 Helpful Tips and Considerations For Finding the Best Bankruptcy Attorney
1. Find a bankruptcy lawyer at the circle of your acquaintances. Keep in mind that bankruptcy law is a specialty, so if your lawyer offers to handle the case as part of your usual retainer, make sure he knows his way around a bankruptcy court.
2. Attorneys must be certified by the American Bankruptcy Institute.
3. Spend a day at a bankruptcy court.
4. What time frame do you have for this bankruptcy?
5. How much access will I have to an attorney during my bankruptcy filing?
6. Because bankruptcy law is a volume business, the time you'll actually be working with a specific attorney may be small. Don't hire the cheapest lawyer.

Credit Repair-bankruptcy

2009-07-19T12:21:00.001-07:00

What is Bankruptcy?Bankruptcy is one of the more effective ways to deal with debts you cannot afford to pay. Once you declare that you are bankrupt, all assests in your possession will be used to pay your outstanding debts. After a period of one year, all your remaining debts will be written off and you can start anew. You can either file your own petition of bankruptcy or your creditors can do it for you. Either way, the effects are the same. Most of the Bankruptcy rules in effect have changed since April of 2004 when the Enterprise Act was approved.How to go BankruptFiling your bankruptcy petitionA petition for bankruptcy is readily available in your local County Court. Processing the petition may cost about £310 deposit and £150 court fee. These fees should be paid along with the submission of your petition. If you are on low income or on certain benefits, you can be awarded exemption from paying those fees.Only the larger County Courts accept bankruptcy petitions. Although you are obtaining the form from your local County Court, you will need to take a trip to the High Court to submit the form. If, for example, you reside in central London, you will have to go to the High Court to submit your petition. The District Judge will usually call for a hearing that same day to decide whether it is appropriate to issue the order or not.Once the order is made, you will get in touch with the Official Receiver who deals with your bankruptcy and report to him all your personal details. The information that you will be asked about usually pertains to your finances including your incomes, expenses, assets, Insurance policies, and Pension policy details.A creditor making you bankruptYour creditor can file a petition for your bankruptcy if you owe him £750 or more, which you are not able to pay dutifully. If you have several creditors, they may join forces to file for your bankruptcy although this is rarely done. You can also be made bankrupt if your Individual Voluntary Agreement (IVA) fails.Before a petition of bankruptcy is filed in court, your creditor will first send you a "Statutory Demand", which will ask you to pay your debt either through installments or through the property you own.The Statutory Demand is usually used by creditors to force its debtors pay the amount they owe immediately without any intention of filing for bankruptcy. This is because no amount is required for filing a Statutory Demand while filing for Bankruptcy charges fees upfront.Within twenty-one days, the creditor and debtor must reach an agreement otherwise, a bankruptcy order may be filed in court. If your debt is less than £750 or there is an ongoing dispute about the money you owed, you can apply to have the Statutory Demand set aside.ADVICE - Statutory DemandsOnce you receive a Statutory Demand, your next move should be to check if you can have it set aside.Do I have Assets?Once you are declared bankrupt, the Official Receiver or appointed trustee may rule out to sell all your assets to pay for your debt.INFORMATION - Please know that certain items or goods are not counted as assets. These items are basically your domestic needs such as clothing, bedding, furniture, and household equipment. Items that are necessary for you to carry over your profession or vocation are also not treated as available assets and in effect, cannot be taken away from you. Your antiques or expensive appliances can be given up for auction as well as your car so long as it is not needed in your profession. In some cases, a car that is necessary for employment is sold and is substituted by a cheaper one.All your assets that have been discharged from your possession must be sold as soon as possible. If any of them remains after you have been released from bankruptcy, they will still no longer belong to you. The Official Receiver will continue to take possession of them until all of them have been sold.INFORMATION - AssetsThe only asset or valuable that is treated differently is your home. For details, see below.Bankuptcy and Hire Purchase AgreementsA clause in the hire purchase agreement states that you will have to return the item once you are declared bankrupt. This means that your contract with the company will be terminated altogether. In some cases, however, you can be allowed to continue ownership by making payments dutifully even while you are declared bankrupt.PensionsIf you went bankrupt before May 29, 2000, your personal pension could be taken in as an asset. This means that you will receive no lump sum or weekly payments in the future. This rule has been changed, however. Therefore, if you went bankrupt after May 29, 2000, your pension, may it be personal or occupational, should be left untouched. Some debtors used their pensions to stop creditors from taking away their savings. In this case, the pension fund may be lost to the Official Receiver.Property and your homeA property or home is an asset that is treated differently. If it is yours alone, it can be forfeited to be sold regardless if it has any equity in it or none. If you are living in it with your spouse and your children, the sale will be delayed for a year to give them sufficient time to find somewhere else to live. Once you go bankrupt, your interest in your property is naturally transferred to the Official Receiver. If you co-own it or in some form of joint ownership, the Official Receiver should only take away your equity share. This is also known as your "Beneficial Interest". In certain circumstances, you can be considered to have a beneficial interest even when you are not named in the mortgage. In certain circumstances as well, your co-owners can make an offer to the Official Receiver to buy out your equity share so the house will remain intact.REMEMBER - Beneficial InterestIf your co-owners have any intention of buying out your equity share of the property, they must do it quickly. Otherwise, the Official Receiver may take it into his hands in selling your home altogether. Those who want to buy your beneficial interest must get in touch with your Official Receiver and transact with him directly. The Insolvency Service charges very low for the transfer of your beneficial interest so this should not really be a hard thing to manage. You also need to reach an agreement with your Official Receiver on the actual value of your beneficial interest before this kind of transaction is made. If there is negative equity in the property, the value of your beneficial interest may go from a minimal amount of £1.00.INFORMATION - Low cost conveyancing schemeTo avail of details about low cost conveyancing scheme, there is a leaflet entitled "What will happen to my home?" which are available in The Insolvency Service. You may also call National Debtline on telephone numbers 0808 808 4000 for more information.If you fail to have someone buy out your beneficial interest in your home or property, your Official Receiver will have no other choice but to sell it. If your home has very little or no equity in it, the court will have to postpone the sale up to three years and see if your property has risen in value. Make an agreement with your Official Receiver about your beneficial interest to keep this scenario from happening.If you still have mortgage or secured loan on your property, your monthly payments should be maintained to stop your lender from taking possession of your property.New rules from April 2004Before April 2004, the Official Receiver is allowed to come back at any time in the future to take your property and sell it. This has now changed. If you went bankrupt after April 2004, the Official Receiver is given only three years to deal with your property. If he is not able to sell it within the period, he will have to give your property back under your ownership. To counteract this law, the Official Receiver can either sell your home immediately, apply for an order for sale, or apply for a charge. If your Official Receiver applies for a charge, he will be given 12 years to ask for an order for sale.Will I have to pay anything from my wages?You may be asked to pay a specific amount from your earnings if the Official Receiver has proven that you have money to spare. He will think out your income and your expenses (including your mortgage, your rent, your household bills, and any other form of expenditures) and study whether you will have allowances for a monthly due.Income Payments Orders & Income Payments AgreementsThe Enterprise Act states that Bankruptcy orders expires after a period of one year. However, you may be asked to enter a binding agreement that will have you pay monthly fees from your earnings for three years under an income payments agreement. If your circumstances change at any period that the agreement is in effect, you can send a notice to your Official Receiver so your case will be looked at again. If you fail to pay your obligations, however, your Official Receiver will have the option to go to court and file for an income payments order against you. This way, the court will rule, based on the Official Receiver's recommendations, how much you will need to pay for a period of three years.The Effects of BankruptcyOnce you went bankrupt, you will need to close your bank account or your building society account. You may open another one for as long as it has been agreed by your Official Receiver and that the bank or building society allows you to. That is why it is best to open an account when you are already discharged from bankruptcy.INFORMATION - Instant access type accountsInstant access type accounts may allow you work through a cash card. If you are interested to obtain more information regarding this, you get in touch with the National Debtline on 0808 808 4000.Going bankrupt can affect your life greatly. In fact, the people that you are going to transact with will usually be more careful not to make you pay any amount that involves credits. If you live with a partner, you may transfer all your payable accounts under his name to make it easier for you and for the companies that you deal with -- gas, electricity, and telephone companies.Your employment status may also be at risk by going bankrupt. To be on the safe side, you must check your employment contract for any clause regarding bankruptcy. If you really want to be sure, you can ask the staff welfare officer or the trade union. If you belong in a professional body that prohibits bankruptcy then you must be prepared for your contract to be aborted. Any job that requires you to handle money could be at risk. Those who work in financial industry could even lose their consumer credit licenses once they go bankrupt.Even after you are discharged from bankruptcy, you will still find it hard to obtain credits. Your credibility in handling financial obligations is obviously destroyed. This is because your record of bankruptcy will remain with credit reference agencies for a period of six years. Your bankruptcy status will also be kept detailed in the Insolvency Register for three months after you have been discharged from it. "The London Gazette" may also publish about your bankruptcy in its classified section or even in your local paper.Bankruptcy offencesWhile you are on bankruptcy status, it is illegal to:- Take a credit of more than £500 without your creditor knowing about your status.- Use another business name to deceive people about your financial state.- Act as a director of a company without permission.- Act as an insolvency practitioner.Bankruptcy restriction ordersBankruptcy status should be lifted out exactly one year after it has been declared. That is in agreement with the Enterprise Act. Your Official Receiver, however, may petition for a Bankruptcy Restriction Order which can last between two and fifteen years, appearing on a public register, nevertheless. The grounds that may call for this order is your misbehavior and dishonesty in any way. If your Official Receiver feels that you have displayed "unfit" conduct, he can ask the court to issue the Bankruptcy Restriction Order. Breaking the order would mean a criminal offence.Qualifications of an unfit conduct include:- Deceiving the Official Receiver about your assets and businesses two years before you went bankrupt.- Gambling.- Making business transactions at a time when you know that you cannot handle debts.- Taking out credits you cannot pay.- Giving away your assets to avoid them from being taken away by the Official Receiver.- Prioritizing some creditors over the others.- Failure to cooperate with the Official Receiver.- Concealing your assets and properties from the Official Receiver.Being issued a Bankruptcy Restriction Order means that you cannot avail of credit that is more than £500 without letting your lender know about your status. You also cannot hold any significant position like an MP, a local councilor, a director of a company, or an insolvency practitioner until after the order has been lifted.WARNINGThe Bankruptcy Restriction Order does not stop your Official Receiver to take criminal actions against any of your offences. If you sell goods that you have on hire purchase agreement or you fill out false information on your loan application, your actions will be taken into account to the attention of the court, no less.Discharge from BankruptcyThe Enterprise Act of 2002 ruled out for discharge from bankruptcy after a period of one year. If you cooperate well enough with your Official Receiver and act to the best of your behavior, this can be moved earlier. A discharge from bankruptcy would mean that all your remaining debts even after your properties and assets have been sold will be written off so you can make a fresh start.If, for example, you went bankrupt on April 1, 2004, you will be discharged from bankruptcy on April 1, 2005 unless it is about to end earlier.WARNINGThe rules on discharge from bankruptcy only applies to first timers. If you have had previous petitions for bankruptcy or your automatic discharge has been suspended, this may take long than you expected. Not keeping an amicable relationship with your Official Receiver could also lengthen your suffering.If you want a certificate of your discharge, you may request the court to issue you one but this will cost £60.00 on your purse. Also, if you want to apply to have your bankruptcy annulled, you may well do so for as long as all your financial obligations have been paid off.Alternatives to BankruptcyIndividual Voluntary ArrangementsAn Individual Voluntary Arrangement or IVA is a formal agreement between the debtor and the County Court made to avoid a petition for bankruptcy. You can either set an amount to pay your creditors monthly and dutifully or pay them in full. To file for an IVA, you will need the help of an insolvency practitioner who will act as the middle man. It is usually costly to hire an insolvency practitioner. Asking them for an initial meeting where you can seek advice whether filing an IVA is appropriate in your case or not is best suited. This way, you can be sure that every cent you pay for is worth it. Names of local insolvency practitioners can be obtained through the court offices or the Official Receivers.The insolvency practitioner prepares the proposal of payment scheme that is according to your capabilities. If your creditors agree to the terms stated in your IVA, the arrangement is put in place. If you fail to comply with the terms in your IVA for the period that it was in effect either your insolvency practitioner or your creditors could file a bankruptcy petition against you.WARNINGBe wary about companies offering to put you on the line with an insolvency practitioner as this requires a fee. You can very well deal directly with an insolvency practioner without having to go through a third party.FACTSHEET - Individual Voluntary ArrangementsIf you need more information regarding Individual Voluntary Arrangements, you may get in touch with the National Debtline on 0808 808 4000.Fast Track Individual Voluntary Arrangements (FTVA)This is another alternative that you could sort through. The FTVA is used to have your existing bankruptcy annulled by way of submitting an installment plan to your creditors and hope against hope that they agree with it. This arrangement is much appealing to creditors because they could be paid more under FTVA than what they would under bankruptcy.Instead of the insolvency practitioner, the Official Receiver works directly to put an FTVA in place. The FTVA is much cheaper than the IVA to arrange because the set fees and costs are lower. If you fail to adhere to the FTVA while it is in effect, your Official Receiver will have no other way than to make you go bankrupt again.WARNING - Fast Track Individual Voluntary ArrangementsWeighing up the ways an FTVA could work for or against your advantage is important before tackling this road. If you choose to have an organization act on your behalf instead of the Official Receiver, you may want to consider a free debt management plan. This way, you can devise affordable repayment schedule for your unsecured debts.COUNTY COURT FEESDO I HAVE TO PAY A FEE FOR AN APPLICATION IN THE COUNTY COURT?Every transaction with the County Court usually requires court fees. If you feel that you are incapacitated to pay the fees by way of benefits, you can submit an EX160 or the "Application for a fee exemption or remission" together with your main application. If the court agrees to your petition for exemption then you will not have to pay certain fees. If, however, you have paid a fee when you should have been exempted, you can file a petition for the court to waive or refund your paid amount. You can do this within six months after the payment has been made.EXEMPTIONSThe court awards exemptions from paying fees to those deserving individuals who are on benefits. If you are on income support or income based job seekers' allowance (JSA), you can automatically be awarded exemption. This is also the case with those who are on working tax credits. If you are on child tax credit or you have received the disability or severe disability element in your working tax, you can be eligible for exemption. This is considering your gross annual income taken into account for working tax credit is not more than £14,600.To qualify for both, you must present substantial documents that will prove that you are on the above mentioned benefits. If your case does not fall under both, you can ask for your paid fee to be waived under the remission rule.REMISSIONSIf the court fees will cause you "undue financial hardship", you are qualified to file for remission, upon which your paid fee will be refunded. This can happen under exceptional circumstances that should prove you are not capable of shedding extra cash for your petitions. To apply for remission, you must present a list of your personal budget, your incomes and outgoings. You must present proofs that your current financial situation makes it impossible for you to pay the fee without having to go though "undue financial hardship." Upon studying your petition, the court may refund part or all of your paid fee depending on what it feels you can afford.

Bankruptcy Litigation in Usa

2009-07-19T12:20:00.001-07:00

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we’re taught that bankruptcy is just what is supposed to happen once any borrower has debts that they can no longer responsibly manage. In our culture, bankruptcy is simply expected to be the final debt solutions to personal economic strife. Even as the nature of consumer debt changes from hospital bills and department store accounts to the burdens of credit cards too easily granted and too quickly filled to their limits, bankruptcy maintains a mythic allure as an all-inclusive cleanser for financial woes.
Much as the debt protection of bankruptcy may have seemed a godsend for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune. More to the point, once a consumer takes time to fully analyze the Chapter 7 bankruptcy program, they may very reasonably wonder whether or not bankruptcy would be the correct choice for any debtor regardless of their own situation. Successfully filed and discharged, bankruptcy protection could indeed offer consumers new beginnings. In the best scenario, the fortunate borrowers could even start their financial lives over from ground zero, but that is only after they have suffered a harrowing ordeal that risks the utter ruination of their credit rating as well as the potential loss and seizure of any even vaguely valuable possessions.
The relief that people may feel when entering the bankruptcy program is understandable, really. Given that most borrowers seriously considering bankruptcy have already had to deal with (the sometimes hourly) harassment from bill collection agencies and watch their mailbox fill to bursting with past due notices from credit card companies, it is not that surprising that the average consumer – struggling to pay their credit cards and other debts – would jump at the chance to have a specialist take over their affairs. The very idea that debtors would no longer be held responsible for their actions alone comes as a sort of salvation that impels otherwise cautious heads of household to essentially hand over the reins of their economic futures. Certainly, the bankruptcy lawyers charging more and more outrageous fees are not going to argue against what may as well be thought of as their own product. Despite the amount of time the lawyers may spend with their clients (they are paid by the hour, as you probably know), very few attorneys will spend even five minutes counseling borrowers about exactly what they are getting themselves into. Eliminating unsecured debts (credit cards, primarily, as these things tend to go) should be a priority, but wise debtors must recognize the limitations of bankruptcy protection under the current statutes. Above all else, they should know not to trust their attorneys for advice beyond their specialty.
From the moment that potential clients enter their lawyers’ offices for an initial consultation, the attorneys tend to assume that the bankruptcy has already started and begin to ask questions about the best way to proceed. Of all the ways to decide whether bankruptcy is the best solution to credit card debt elimination for a client and his or her family, expecting fair and balanced advice from the lawyer potentially paid to handle their case presents problems that should be obvious to all borrowers. It is not always the lawyers’ fault, exactly. Becoming a successful attorney requires the sort of mindset that tends to ignore or flatly disregard competing notions of financial stability and methods of resolution. If anything, this mentality should be what any borrower would want to look for in their attorney, and such presumptions force the real problem. At this late stage of the game, debtors should be more interested in finding a debt management specialist who can knowledgeably tackle all of their specific issues and questions – even the questions that borrowers aren’t even aware that they have.
Thinking, as they tend to do, that they will be able to buck the odds and turn the system to their advantage, there are a number of elements to the modern bankruptcy that most attorneys are loathe to mention despite the overwhelming importance of those elements to the people planning to file. Chapter 7 bankruptcy protection, the debt elimination bankruptcy program that was once upon a time the only sort of bankruptcy, is now far more difficult to successfully enter. Congressional legislation from just a few years ago has irrevocably changed the rules concerning the Chapter 7 process. Nowadays, borrowers attempting to file for Chapter 7 must be able to prove that they earned less than the median income for their state of residence. For debtors living in lower income regions of typically high income states like New York or California or Massachusetts, this can be absolutely ruinous. Even worse, the filers’ incomes are determined by a relatively random period set months before they actually file. If someone attempting to declare bankruptcy depends upon a seasonal rise in business or a commission that effectively makes up a dramatic percentage of their annual income, the earnings extrapolated from that small sample size could be thoroughly skewed.
More importantly, debtors who are denied access to the Chapter 7 program by court appointed trustees should understand that they do not simply get to start over and try another avenue toward debt reduction. Instead, these borrowers are automatically switched over to the Chapter 13 debt restructuring program. With Chapter 13, debts are not eliminated. In fact, under this type of bankruptcy, borrowers are effectively forced to repay their lenders as quickly as possibly under court assessed budgets compiled using Internal Revenue Service data. As with Chapter 7 bankruptcies, the incomes that the government calculates could still be completely inaccurate depending upon the earning period from which they determine their figures and also utterly unfair since the courts do not bother to look at the specific region in which the filer lives. Within Chapter 13 bankruptcies, though, things get even more convoluted because the budget under which the borrowers are expected to survive (giving all additional funds to the accumulated creditors, naturally) also depends upon their state of residence. Meaning, people filing for bankruptcy in Seattle will be expected to have no more than the average costs of living for the entire state of Washington. In this way, the newly bankrupt have been forced to take out second jobs, pull their kids out of private schools, or even, in some extreme circumstances, sell their homes in order to relocate.
Of course, for many of those borrowers whose financial situations are so grave that they must first contemplate the bankruptcy so-called solution, they do not need further impetus to take on a second or even a third job. This is yet another of the, for lack of a better word, hidden expenses of bankruptcy. Most borrowers have already girded themselves for the costs of bankruptcy attorneys – though they are always, ALWAYS greater than even the most well prepared debtor could dream – and the miscellaneous costs that arrive whenever the government is involved. Even the actual filing of bankruptcy shall require hundreds of dollars up front (for some reason, neither the lawyers nor the courts will allow those seeking to file bankruptcy any amount of credit). There is also the cost of essentially purposeless debt management courses from government certified instructors that filers must successfully pass before first submitting paperwork and before their ultimate discharge could be processed. As you should now expect, these courses (far from cheap – since only a few ‘schools’ per region pass government certification, they have no reason to follow the market pricing) shall be paid solely at the borrower’s expense.
Perhaps the greatest true cost, though, is the sheer amount of time spent compiling all necessary documents and verifying that all information given to your attorney and the bankruptcy trustee is accurate beyond a shadow of a doubt. Remember, no matter what your actual intentions may have been, inexact data given to the federal authorities could be judged as fraud in criminal proceedings. Forget one teensy portion in a step-brother’s mining operation? What about that great-uncle’s time share absently gifted? And are you really sure you recorded every single bit of your income from six months ago? Every single bit? So sure that you would risk imprisonment should things turn out to be accidentally falsified? This is what bankruptcy protection actually entails. Much as there may seem a temporary relief from stress once you have passed on your credit card debts to another source, there arises an entirely different crest of tension. The bills may have stopped, true, but what exactly was on those reports? What was and was not spelled out? Beware of any supposed solutions that involve budgetary conditions prescribed by the Internal Revenue Service and guarded by the ever more ambitious watchmen of the federal justice department.
At the end of the day, for even the luckiest of those consumers filing for bankruptcy protection, Chapter 7 still cannot guarantee the elimination of all of their personal debt loads. Secured loans, those debts maintaining attachments to actual property like cars or homes, tend to demand said collateral before giving an inch toward debt resolution. Child support and alimony – as well, if needs be said, tax liens and those financial obligations resulting from criminal trials – are obviously not to be touched, and, after a late 80s legislative fiat, student loans are also out of bounds. The medical community and various health insurance political action committees have been trying for some time to make sure that hospital bills will also be rendered immune to Chapter 7 bankruptcy protection, and, make no mistake, the credit card companies are dancing as fast as they can to ensure every single credit account receives the same treatment.
This is not to say that there is no point to bankruptcy as we currently understand the process. As long as there is a chance to eliminate credit card debt, certain types of borrowers profoundly unlucky in their own personal finances should do whatever is necessary to attempt to clear the registers. However, for most ordinary consumers, just cutting back on purchases and maintaining a reasonable household budget shall eventually have the same effect. Whenever there is even the slightest chance of fixing personal finances without resorting to professional help, the debtor must take every last attempt to manage their own obligations however seemingly severe the deprivations. The American economy is in trouble. We are entering a recession. Still, that does not mean every worker need presume the worst nor that they should give up – which, for all intensive purposes, bankruptcy suggests. Cutting costs will never be pleasurable, debtors will have to adjust to a different lifestyle, but, once consumers look closely at the bankruptcy option, they will almost always choose any other alternative for eliminating their credit card debts.
Even beyond careful budgeting practices, there are other maneuvers that consumers may attempt. Many credit card companies or similar lenders will offer forbearance or a stay of payment due dates if borrowers can show some cause for the delay however vague or gliding upon the rim of truth. Sickness, unemployment, familial tragedies – any decent excuse when articulately and passionately explained to an understanding representative of a lending institution may well prove the difference between bankruptcy and a survivable program of debt repayment. After all, as long as people continue to go bankrupt (and, no matter how much the enlightened borrower shall try to avoid bankruptcy, there will exist a segment of America determined to declare bankruptcy as some fated penance), creditors shall worry. Lenders don’t want to force anyone into Chapter 7 protection. Consumer credit card debt elimination as vouchsafed by the government, however rare and dangerous, would be the absolute worst possible consequence for the banks involved.
We do understand that severe financial mishaps may necessitate governmental intervention. There is a reason that the United States originally offered such protection. However, most of the personal bankruptcies filed in America could be dealt with by other means far less damaging to the debtors’ credit and pocketbooks. Even beyond simply following disciplined household budgets and talking over the potential for re-structuring debt payments with creditor representatives, there are entire businesses that have grown up to assist consumers in their struggles with personal debt loads. Most everyone is at least familiar with the Consumer Credit Counseling program thanks to the industry’s non-stop marketing campaign, but, with increasing analysis from watchdog groups, it turns out that many of these companies are funded by the credit card conglomerates independently from whatever fees they charge their supposed clients. More to the point, the repercussions upon credit and the cost out of pocket are not much different than what borrowers could expect from bankruptcy proceedings.
Debt settlement companies, on the other hand, though they are far less publicized (and, a new industry, exponentially less well known than bankruptcy protection by most Americans) negotiate with the credit card companies on behalf of their clients in order to reduce the total balances of the assorted debts that have accrued. Considering that – so long as bankruptcy remains a danger to their supposed holdings – lenders are more than willing to agree to something around fifty percent of the debtor’s actual obligation in exchange for virtually guaranteed payments from the debt settlement company, there is an obvious benefit for every borrower that would qualify for the settlement program. It’s not for every debtor, of course. A handful of lenders still stubbornly refuse to bargain regardless of the cause or value of the specific account. However, every debtor should at least inform themselves about the debt settlement option and take advantage of free initial consultations whenever they are available.
As with any financial predicament, there is no way for a short article such as this to fully explain all the myriad possibilities and potentials a debtor may come across when attempting to eliminate his or her debts. Every debt scenario is different, after all, and there is no way for the borrower to come to a full understanding of what lies ahead without personal investigation. Credit card debts and unsecured floating obligations may cripple budgets temporarily, but, leaving aside the stresses unfulfilled payments may engender among heads of household, there are generally several different alternatives beyond Chapter 7 bankruptcy with which debtors may avail themselves. Look around. Cast your net around the varied solutions and see how they would best fit your particular circumstance. For an unfortunate few, bankruptcy may indeed be the only decision that makes sense, but, arduous as that choice may be, there’s a certainty that knowledge brings. Fiduciary protection (for, once again, unsecured debts; largely credit card accounts) from the federal government will always be there for the most desperate sort of borrower, the books will be balanced, but, with any luck, some chapters may not be closed.

Top Ten Reasons People File for Bankruptcy

2009-07-19T12:19:00.001-07:00

1. Eliminate the legal obligation to pay many of your debts.. This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start. Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared.
2. Stop foreclosure on you house and allow you to effectively make payments to catch up on missed payments of your mortgage. If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind). <stop foreclosure>
3. Prevent your car or other property from being repossessed.
Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company.
4. Reduce or even eliminate high medical bills.
Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 Bankruptcy can greatly reduce the amount of medical bills. 5. Recent loss of employment.
Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy.
6. Stop harassing behavior from creditors.
Some creditors do not always take the right course of action when attempting to collect a debt. Often, creditors will persistently call the home of a particular debtor with demeaning and abusive behavior. Not only is this unethical it can rise to the level of unlawful. In essence, bankruptcy will put on hold the demands of many creditors and stop the harassing phone calls and other inappropriate behavior all together.
7. Restore or prevent your utilities from being shut off.
As you have probably seen many of these reasons overlap. Some lead to another. If your home is in risk of foreclosure then your utility bill may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark.
8. Provide help for large amounts of student loan debt. <student loans>
While it is true that your student loans will not be eliminated like several other types of unsecured debt, bankruptcy can consolidate your student loan debt. This consolidation will allow a debtor to make monthly payments through Chapter 13 Bankruptcy that are within the financial ability of the debtor.
9. End wage garnishments.
Chapter 7 Bankruptcy will stop wage garnishment. Wage garnishment basically takes away your weekly earnings often times leaving you without necessities. Chapter 7 Bankruptcy allows you to purchase necessities for you and your family. Chapter 13 Bankruptcy will also help in this regard.
10. Challenge certain claims of fraudulent creditors.
Bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. An attorney can provide the support and the backing you will need to step up to these creditors. Attorneys often even the playing field between a big creditor and a single debtor. Filing bankruptcy with an attorney can stop fraudulent reporting by a creditor.

Bankruptcy in Hawaii

2009-07-19T12:18:00.000-07:00

While there’s no simple equation that would allow borrowers in Hawaii to figure out whether or not bankruptcy protection would be a proper fit for their own family, any consumer who finds him or herself struggling to afford the minimum monthly payments from their credit cards should at the least see what other options are available. For that matter, Hawaiian debtors who have looked at their assembled bills with a realistic and clear eyed appraisal only to discover that their household capacity for gross income in the next few years put against the family cost of living expenses and utility obligations would not allow for the elimination of the total debt load must seek out the professional services now available throughout the islands. While your authors appreciate that many of the hard working men and women of Hawaii will do everything possible to pay back the loans that they have lawfully taken out in good times and bad, waiting until the last moment in the vain hopes of some mystical deliverance from crushing financial burdens will only end in heart ache and household economic instability. Like it or not, consumer credit is a fact of life in Hawaii and most everywhere across the United States, and that is why America first initiated bankruptcy protection: to offer borrowers a fresh start. Unfortunately, Chapter 7 bankruptcy in Hawaii no longer provides the same guarantees following the congressional legislation and subsequent alterations of the bankruptcy code that occurred in the fall of 2005, and many of the borrowers that fought until their last breath to right their household budget without employing high priced debt professionals only to inevitably decide upon bankruptcy protection as what they believed to be their final alternative came to find out far too late in the debt relief game that there were far more effective programs at hand. Within this article, we will explain a bit more about what personal bankruptcy protection now means to the Hawaiian borrower and what options may provide a less disastrous solution to spiraling financial obligations.
As most Hawaiian residents already know, a good portion of the average citizen’s debts would not be able to be affected by governmental bankruptcy protection. Alimony and child support and other familial debts are – and, we would agree, should be – essentially removed from all bankruptcy actions, and the same could be said for tax liens and penalties that came about as the consequence of criminal proceedings. Cash advances above eight hundred dollars that were taken out less than three months from the moment that the borrower files his or her papers run the risk of being considered fraudulent by the Hawaiian courts. Purchases of luxury goods above five hundred dollars that were taken out less than ten weeks before the time of filing face similar risks, but, obviously, there’s a good deal more leniency given the right bankruptcy attorney. Student loans, though they would seem superficially to be the same as medical bills or credit card accounts or any other unsecured debt burdens, are similarly rendered immune to bankruptcy protection after a congressional dictum from the mid 1990 (at a time when, according to some studies, a majority of the United States representatives had defaulted upon at least some portion of their own educational loans), but they tend to feature the lowest interest rates and easiest tax deductions this side of home mortgages upon primary residences. Those mortgage loans – as well as vehicle loans or any other secured debt – must be formally reaffirmed before a Chapter 7 bankruptcy could proceed (the reaffirmation meetings are generally held over the phone and should largely be considered a formality), and, in the event of a Chapter 13 debt restructure program, they may be forcibly refinanced to indulge easier payments and preclude foreclosure and forbearance which, given the sad state of Hawaii real estate during our national economic crisis, has become an all too real threat for citizens throughout our state.
Chapter 7 debt relief bankruptcy is the oldest of all of the American bankruptcy protections, and it is still the only sort of bankruptcy that a surprisingly large portion of Hawaiians genuinely recognize. By this point in modern society, with the proliferation of credit so wide spread, there are a number of different programs meant to specifically protect everyone from family fishermen to actual cities and municipally controlled utilities, but the Chapter 7 system remains the emblem of what most people think of to be bankruptcy. Within the Chapter 7 debt liquidation program, individual consumers or married couples ask a trustee randomly selected by the Hawaiian courts to discharge all of their unsecured debts after a period of analysis that generally lasts about six months: with the recent boom in personal bankruptcies following the down turn of the Hawaiian and greater American economy, the time period may take a bit longer. Of course, nothing comes for free, and the consequences of Chapter 7 debt elimination could actually put the filer’s household in a worse situation than was previously felt. The negative repercussions of bankruptcy shall remain on the borrowers’ credit reports for up to ten years and – despite the sudden eradication of their unsecured burdens – could actively prevent the parties who are declaring Chapter 7 from home mortgages, vehicle loans, and even employment opportunities and security clearances. Much as the Chapter 7 bankruptcy alternative could erase past mistakes and forgive those debts helplessly drawn after familial tragedy, one should not necessarily think of the program as the fresh start our grandparents may have enjoyed. Credit reports are simply too important for ordinary Hawaiian consumers to disregard, and the FICO scores issued by the three primary credit bureaus (Equifax, TRW, and TransUnion) have a disproportionate effect upon Hawaiian families that some times barely understand the calculations involved.
To be sure, for some borrowers in Hawaii who have weathered lingering bouts of unemployment and have few to none assets worth preserving, Chapter 7 bankruptcies do still serve a purpose. Unfortunately, after recent legislation, the perennial guarantee of Chapter 7 bankruptcy protection and the eternal promise of household rebirth following bankruptcy no longer applies to every resident of Hawaii. As of October 17, 2005, several changes were made to the United States bankruptcy code under the Bankruptcy Abuse Prevention and Consumer Protection Act. This bill – propelled by creditor funded political action groups and sped through the U. S. Congress during a period of economic expansion with a shameful absence of media news coverage and analysis – utterly changed the parameters and liberties formerly to be considered the birthright of every Hawaiian. After the passage of BAPCA, the amount of documentation required for filing increased greatly along side the potential penalties should interested borrowers simply forget to record an essentially worthless asset or trifling bit of income. The exponentially larger penalties for fraud (or, at least, what the new federal bankruptcy code defines as fraud) were set into law just as the amount of latitude granted the Hawaii court trustee who would actually look over the debtor’s individual case was severely weakened. This heightened threat from the court system and the greater complexity of the paperwork involved with each sort of bankruptcy protection virtually demands the aid of reputable bankruptcy attorneys who have had a good deal of familiarity with both Hawaiian statutes and the national bankruptcy code.
Tragically, as the country’s economy continues to falter and more and more Hawaiian consumers beset by out of control debt feel (for right or wrong) that they have no recourse left but bankruptcy protection, the services of experienced law firms have grown harder for every Hawaiian borrower to employ and the fees that such firms feel acceptable to request have developed accordingly. Along with the administrative charges that each Hawaiian consumer will have to pay through money orders when filing their bankruptcy petition with their local county clerk, the Bankruptcy Abuse Prevention and Consumer Protection Act now necessitates that every borrower who intends to take advantage of Chapter 7 or Chapter 13 bankruptcy programs will be forced to take a course on debt management before declaration and again before balance discharge. Not only do these costs – above and beyond the sweat equity uselessly demanded of consumers likely already strapped for time; this is particularly true for Hawaiian residents who do not live within a reasonable distance from one of the handful of course counselors certified by the federal government – may already preclude many of Hawaii’s most disadvantaged citizens from employing the bankruptcy protection they so sorely need.
More troubling, following the 2005 passage of BAPCA, Chapter 7 protection became far more difficult for ordinary borrowers with a solid work history to enter and considerably more threatening for those Hawaiian consumers that successfully argue for Chapter 7 eligibility to endure. The United States bankruptcy code currently insists that any borrower formally residing in Hawaii must earn less than the median income of every head of household in the state as determined by the most recent census figures. This means that single wage earners who have a demonstrable gross income above forty seven thousand (sixty thousand for a Hawaiian household with two members; seventy thousand for a household with three members; eighty five thousand for a household with four members) in the year prior to filing for bankruptcy will find it very difficult to eliminate their collected debts through Chapter 7 protection no matter how great their burdens. If the borrower does find that they still make more than the median earnings of Hawaiian residents, there’s a slim chance that they could still convince the court trustee that (once all monthly utility bills, household expenses, and secured credit accounts are taken into consideration) they would be less than able to come up with one hundred dollars every month for a period of five years – six thousand dollars all told – and they may then be allowed Chapter 7 debt elimination. This “means test” has become far more arduous, though, since the Internal Revenue Service has outlined the costs of living for Hawaiian households with, once again, virtually no wiggle room allowed the Hawaii judge actually studying the borrowers’ financial budget, and, as consumers should presume, the IRS estimates are comically low compared to the realities of many debtor families who happen to live in the more expensive areas of Honolulu or Maui or other premium sites in Hawaii.
Even for those supposedly fortunate Hawaiian consumers that manage to pass through the ever tighter gates toward Chapter 7 debt elimination, there will still be unintended consequences as a result. In the years before the BAPCA legislation was passed, debtors in Hawaii who held significant assets knew that their most high priced possessions could potentially be seized for auction by agents of the Hawaii courts. However, average consumers – since they would only need to list their personals goods by the potential resale value – did not have much to worry about. Nowadays, as yet one more aspect of the damage to the United States bankruptcy code following the 2005 legislation which every Hawaiian consumer thinking about the Chapter 7 program must recognize, borrowers have to compile an exhaustive register of virtually every thing that they own because the items will be valued according to their potential replacement costs. Hawaiians declaring bankruptcy protection are a bit more fortunate on this point when compared to their countrymen. Local statutes designed by the Hawaiian legislature offer a different slate of exemptions with which borrowers can attempt to safe guard their most prized objects. There are still no guarantees for many household furnishings as well as family heirlooms or similarly important objects, but, compared to the minimal exemptions guaranteed by the federal government, they should be considered highly desirable indeed.
Under the Hawaiian homestead exemption, any real property of one acre or less should not be worried over unless there’s a great deal of equity (the precise amount protected will depend upon the borrower’s age), and the household furnishings – which for the Hawaiian statutes shall encompass everything from coffee machines to books and record albums to clothing and jewelry – are protected up to one thousand dollars in total; married couples should double this and most other Hawaiian exemptions. The exemptions also cover a single automobile with a blue book value of less than twenty five hundred, family burial plots along with associated structures (grave stones, monuments, etc), and the filers’ so called tools of trade: physical implements, uniform, commercial library, and vehicles such as cars and boats that could be proven to be necessary for the borrowers’ employment. Workman’s comp, disability payments, unemployment benefits, certain types of retirement plans, life and health insurance takings, and any wages earned but not yet collected by Hawaiian borrowers shall also be taken care of. Once again, when set aside the puny exemptions that have been erected by the national government, Hawaiian debtors thinking about Chapter 7 debt elimination bankruptcy are remarkably fortunate, but, when the family must decide whether to protect their couch or their wedding ring, that may seem to be cold comfort.
The bankruptcy protections that generations of Hawaiian families have depended upon have changed, utterly, and borrowers concerned about their debts should not walk blindly into bankruptcy declarations (or, for that matter, pay the extravagant sums requested by reputable bankruptcy attorneys licensed in Hawaii) without a journey of discovery that takes into account all of the various debt relief alternatives blossoming in the absence of effective bankruptcy solutions. Despite their advertisement fueled popularity around an irritatingly large percentage of Hawaiian residents, Consumer Credit Counseling companies have fallen under suspicion now that most borrowers understand that the approach has been virtually subsidized by the credit card companies for years. Beyond anything else, Consumer Credit Counseling notations look rather worse than even bankruptcy upon credit reports and FICO scores while the system charges borrowers up to four figures for little more than a temporary drop in interest rates. Also, the Consumer Credit Counseling method has the same essential flaw as secured debt consolidation loans – artificially lowering payments by extending the terms of the obligation only means that compound interest (even a relatively low rate of interest) has more time to raise balances – although consolidating consumer debt at the expense of home equity has potentially far more dangerous consequences for home owners: particularly given the current real estate value free fall.
For the right sort of borrower, any of these debt management alternatives (even Chapter 7 bankruptcy protection, weakened as the current program may be) could actually seem like a reasonable maneuver, but, when we have talked to the consumers around Hawaii that have found the most success in their attempts to liquidate unsecured debt loads, the approach that comes up time and again is debt settlement negotiations. Under the debt settlement plan, trained and certified debt analysts speak on the borrower’s behalf with credit card representatives and – through a combination of threats (since bankruptcy and the potential liquidation of all unsecured loans always remains a possibility for Hawaiian borrowers) and promises (most debt settlement companies with the best track records ensure that their clients pay back the remaining balances in less than five years) – the debt settlement negotiator will cut their clients’ debt load by as much as sixty percent. The debt settlement strategy comes with its own costs, of course, and nothing looks quite as good on a credit report as paying back the loans in a traditional manner. For that matter, since not all lenders are equally amenable to the settlement option and since many of the borrowers would sadly be unable to repay even a fraction of their collected credit card bills in a timely fashion, many Hawaiian consumers would not even be accepted into the settlement program. However, given the problems with bankruptcy that we have illustrated earlier in this article, any Hawaiian borrower worried about their bills should certainly take the time to examine the alternatives. Unlike the time spent meeting up with bankruptcy attorneys, there will be generally little if any money requested from the settlement professionals for an initial consultation, and many of our Hawaiian correspondents reported great success even from internet companies that better suited their distant location or harried schedule. The settlement solution isn’t for every Hawaiian debtor, it will not offer the fresh start Chapter 7 bankruptcy once promised, but, presuming borrowers have examined all of the alternatives, it should be well worth the time to take a look.

bankruptcy

2009-07-19T12:17:00.000-07:00

It also refers to the legal process involved: the administration of an insolvent debtor’s property by the court for the benefit of the debtor’s creditors. Filing by a debtor is called voluntary bankruptcy; involuntary bankruptcy is declared by the court upon petition by a creditor. The U.S. Bankruptcy Code makes four types of relief available to bankrupt individuals or corporations: liquidation (under Chapter 7), reorganization (Chapter 11), debt adjustment for a family farmer (Chapter 12), and debt adjustment for an individual with a regular income (Chapter 13). Municipalities may file under Chapter 9. Generally, not all debts are paid in a bankruptcy. The court determines which debts are to be repaid, and the debtor is typically granted a discharge of the rest. See also insolvency.

Money Laundering - how it is done, and what is being done about it. A guide to sources

2009-03-09T13:21:00.002-07:00

Bogus peer Hugh Rodley tried to pull off world’s biggest bank raid: A gang of international criminals came close to stealing £229 million from a City bank by exploiting the high-tech security measures designed to protect money transfers. Hugh Rodley was the front man for the group, setting up companies and bank accounts to receive and launder the money. The Times, 5 March 2009.

House of Lords European Union Committee: Money Laundering and the Financing of Terrorism: A call for evidence. December 2008.

The Joint Money Laundering Steering Group: The Group is made up of the leading UK Trade Associations in the Financial Services Industry. Its aim is to promulgate good practice in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations

Prepaid Cards: Vulnerable to Money Laundering?: A discussion paper by Stanley Sienkiewicz, published by the Federal Reserve Bank of Philadelphia. February 2007.

The Financial Crime Forum: The Financial Crime Forum is an initiative of The Anti Money Laundering Network, a group of companies which specialises in matters relating to financial crime and regulatory affairs. It holds regular conferences.

14th Annual International Money Laundering Conference: The dates of the conference in Florida are March 16-18, 2009.

Virtual money laundering now available on the world wide web: Money launderers can now move illicit cash through the growing number of virtual reality role-playing games, and convert that cash into real currency before withdrawing it from ATMs worldwide. An article by Kenneth Rijock, a financial crime consultant based in Miami.

Terrorists launder cash through online gambling: Islamic terrorist networks are using online gambling websites to launder money for attacks, security analysts have disclosed. Daily Telegraph, 2 January 2009.

Second Life world may be haven for terrorists: Legal experts claim the virtual world could provide a haven for money launderers, fraudsters and even terrorists to hide and move funds. Sunday Telegraph, 13 May 2007.

The hawala alternative remittance system and its role in money laundering: A paper by Patrick M. Jost of FinCEN and Harjit Singh Sandhu of Interpol/FOPAC published by Interpol, January 2000.

Eleven jailed in £500m 'dirty cash' case: A police and Customs operation has ended with more than 75 years jail for money launderers based in Yorkshire. The ring involved the laundering of some £500 million over four years in the late 1990s and early 2000s through abuse of the ancient Islamic financial system of hawala. Guardian, April 18, 2007.

Hawala: criminal haven or vital financial network?: A paper Roger Ballard Published in the October Issue of the Newsletter of the International Institute of Asian Studies, University of Leiden, pages 8 – 9. The paper is also available at a website on remittances in general

Eight held in hawala money laundering probe: Eight people have been arrested in London on suspicion of involvement in a huge money laundering operations which used the ancient hawala system. BBC, 30 October 2001.

Underground Banking and National Security: Hawala, Hundi and Chop banking systems as traditionally used by Arabs, Indians and Chinese, do not necessarily involve money laundering but nevertheless underground banking has historically proven itself to be one of the safest methods for money launderers to transfer large sums of money without a trace.

Crime and Money Laundering - the Challenges: A speech by Tom K Alweendo, Governor of the Bank of Namibia, at the African Banking Congress in Johannesburg, 8-10 March 2005.

Nigeria governor to be impeached: A Nigerian state governor who was charged with money laundering in the UK has been handed an impeachment notice in his oil-rich home state of Bayelsa. BBC, 23 November 2005.

Spotlight turns to slick IRA money-making machine: The Provisional IRA's finance department is a slick machine with 30 years' experience in moving money through the international banking system, as well as hiding millions of dollars in donations from Libya and the US. Guardian, February 19, 2005.

IRA bid to buy bank: The IRA's money laundering empire is so vast they have been in negotiations to buy a bank in Bulgaria according to reports. 22 February 2005.

IMoLIN : International Money Laundering Information Network: IMoLIN has been developed with the cooperation of the world’s leading anti-money laundering organizations and the website includes a database on legislation and regulation throughout the world, an electronic library, a calendar of events in the anti-money laundering field, and a news forum.

Secretary Ridge Announces New Financial Investigations Initiatives: The Secretary of Homeland Security, Tom Ridge, announced programs to safeguard America's financial systems against criminal exploitation including Operation Cornerstone, a new financial investigations initiative against money laundering crimes. July 8, 2003.

European Union - Financial Crime: The part of the official European Commission website that deals with money laundering and financial crime.

UK Money Laundering Regulation: Publications and guides from HM Revenue & Customs.

The Anti-Money Laundering Network: founded in 1994 by Nigel Morris-Cotterill, the internationally recognised counter-money laundering strategist. It provides a complete range of AML consultancy, services and products to various financial institutions all over the world.

Making Sense of the AML Compliance Puzzle: Information from 192.com Business Services who have produced guides to the relevant laws.

Factiva Public Figures & Associates: A database to assist compliance officers in the fight against money laundering, illicit payments, and other illegal activity. It provides information on "politically exposed persons" in every country.

The Institute of Money Laundering Prevention Officers: A cross-representative forum of anti-money laundering professionals who share views, experiences and opinions. The IMLPO Annual Conference is an important forum for developments in the field.

The Terror Finance Blog: The Terror Finance Blog was created to serve the needs of legislative staff, government officials, policy makers and researchers who need intelligent and relevant analysis of issues relating to terrorist financing. The contributing experts all have many years’ worth of experience in studying, documenting, and researching the ways in which terrorists fund their actvities and get away with it.

Anti-Money Laundering / Combating the Financing of Terrorism: The most comprehensive source of downloadable documents on these subjects. It is part of the website of Kenneth L. Bryant DBA Intelsec International, a global full service investigative, security and risk management consultancy that provides asset protection and risk mitigation services exclusively to corporate clientele worldwide.

The Money Laundering Compliance Centre: Silkscreen Consulting (countermoneylaundering.com): One of the world's leading specialist counter-money laundering strategy consultancies. Works with banks to design, implement and maintain efficient and effective anti-money laundering system and training programme.

ABC Solutions: ABCsolutions was established to assist Canadian individuals and organizations to meet the challenge of developing and maintaining an effective anti-money laundering compliance program as mandated under Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

IBA Anti-Money Laundering Forum: The International Bar Association's Anti-Money Laundering Forum website provides a unique "one-stop-shop" for access to the most current versions of each EU member state's anti-money laundering laws and regulations, direct links to national anti-money laundering authorities information websites and a large amount of related information and is information from all significant jurisdictions around the world.

Quicktolearnmore.com: An anti-money laundering e-learning platform especially for counter-money laundering training in multi faceted and multi-jurisdictional environments, which will assist financial institutions around the world to meet the challenges of an increasingly international regulatory threat to their businesses in different jurisdictions.

Clicktolearnmore.com: The leading provider of counter-money laundering content to e-learning providers and for in-house e-learning systems.

World Money Laundering Report: The only truly international newsletter for compliance professionals. Sources from Europe, USA, Asean and more. Edited by Nigel Morris-Cotterill. With syndication deal, readership exceeding 10,000.

GlobalKYC.COM: The leading OFAC monitoring service. (OFAC is a US government organization, the Office of Foreign Assets Control).

Money Laundering Reporting Officers: MLRO Support Ltd is managed by two qualified accountants - David Winch (co-author of Money Laundering for Lawyers) and Bob Edwards who both are experienced MLRO's in their individual practices.

New anti-money laundering unit set up: A new anti-money laundering taskforce to streamline and modernise the system for reporting suspect financial activity in Britain, has been announced by the Home Office. 1 July 2003.

Risk Values: A cutting edge customer profiling tool for anti-money laundering transaction monitoring and analysis software.

OPSIS Sentinel: UK anti-Money laundering software from OPSIS. The Money Laundering Regulations 2003 have increased the importance of having systems to prevent money laundering and solicitors, estate agents, IFAs, car dealerships and auctioneers, are just some of the businesses affected by the regulations.

US Treasury - Office of Terrorism and Financial Intelligence: The website contains papers on the US Government's National Money Laundering Strategy with a special emphasis on unravelling the finances of terrorist groups.

Khodorkovsky "laundered $23bn": Russian prosecutors claimed that Mikhail Khodorkovsky, the jailed Yukos oil tycoon, laundered more than $23bn (€18bn, £12bn), in Yukos oil sales, disclosing the first details of charges that could keep the Kremlin opponent in jail for a further 10 years. Financial Times, February 9 2007.

Khodorkovsky & Lebedev Communications Center: The official website of Mikhail Khodorkovsky and Platon Lebedev that was established to support their claims that they are innocent.

U.S. Indicts Russian U.N. Official: Vladimir Kuznetsov, a Russian official who chairs the United Nations' powerful budget committee has been charged with helping another U.N. procurement officer launder hundreds of thousands of dollars in bribes for a share of the money. Fox News, September 2, 2005.

Money Laundering in Casinos: Part of an anti-casion website.

Online Gambling Sites Less Susceptible to Money Laundering Than Real-World Counterparts: In a submission to the Financial Action Task Force (FATF), the Interactive Gaming Council (IGC) points out that online gambling is in a better position to address the risks of money laundering. 24 September 2002.

Death threats before crash: Stephen Curtis, a lawyer for the Russian oil giant Yukos, who died in a mystery helicopter crash had received death threats. Swiss auditors had recently started investigating possible money laundering by Yukos companies. Western Mail, August 7, 2004.

Riggs Bank Hid Assets Of Pinochet, Report Says: Riggs Bank courted business from former Chilean dictator Augusto Pinochet and helped him hide millions of dollars in assets from international prosecutors while he was under house arrest in Britain, according to a report by Senate investigators. Washington Post, July 15, 2004.

Argentina: the Dirty Money War: A whirlwind of allegations linking at least two Argentine financial institutions to elaborate international money-laundering networks has damaged the credibility of the nation’s banking system and further complicated the government’s task in reviving the economy. World Press Review (VOL. 48, No. 05) May 2001.

Money Laundering new regulations - implications for information provision: A feature article by Olivia Freeman, former Head of Business Information at HSBC Bank, in the FreePint Newsletter 164, 29th July 2004.

International Conference on Money Laundering, London, 26 February 2002: Among the covered were the financing of terrorism, new regulations in Europe and the USA, practical steps to prevent money laundering, and cases of international corruption and organised crime. Speakers come from the Financial Services Authority, Scotland Yard, National Criminal Intelligence Service, Transparency International, the Organisation for Co-operation and Security in Europe and other important bodies.

US Financial Crimes Enforcement Network (FinCEN): FinCEN was established in 1990 by the US Treasury Department to collate, analyze, and disseminate information on financial crimes, especially drug money laundering.

Money Laundering: A Banker's Guide to Avoiding Problems: Advice from the US Office of the Comptroller of the Currency.

Correspondent Banking: A Gateway For Money Laundering: A report by Linda Gustitus, Elise Bean, and Robert Roach, Democratic Staff, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate. February 2001.

Financial Action Task Force on Money Laundering: The FATF was established by the G-7 Summit in Paris in 1989 to examine measures to combat money laundering. Its membership includes the major financial centre countries of Europe, North America and Asia. It is a multi-disciplinary body which meets several times each year bringing together the policy-making power of legal, financial and law enforcement experts. Since the atrocities in the US on 11th September 2001 the FATF has been paying special attention to the world-wide effort to combat terrorist financing.

Launderingmoney.com: A website maintained by Michael Hearns, a veteran US law enforcement officer with considerable experience of combatting money laundering.

Association of Certified Anti-Money Laundering Specialists: ACAMS was created in November 2001, by Alert Global Media, Inc., the publisher of Money Laundering Alert, and is an international organisation that provides a platform for career development and professional networking for individuals and is a resource for financial institutions and related businesses to identify and locate specialists in the money laundering prevention field.

International Compliance Association: The ICA was created to support Money Laundering Reporting Officers, Compliance Officers and their assistants, in meeting the challenges posed by enhancements to the regulatory environment and the risks associated with the relentless growth in the extent of property derived from criminal activity.

Former Merrill Lynch trader probed over Allegheny payment: Daniel Gordon, former chief energy trader for Merrill Lynch & Co., is being investigated for allegedly embezzling $43 million from the world's largest securities firm in 2000 by disguising the theft as an energy trade, and laundering the money with the help of a Canadian offshore-banking consultant. Washington Post, August 13, 2003 .

SAS in Bosnia bank seizure: An SAS team helped end a mafia money-laundering racket by taking part in a raid on a Bosnian bank, it has emerged. It was believed that the money-laundering operation was funding a plot to set up a breakaway Bosnian Croat state. BBC, 17th June 2002.

Funny money: Following the September 11th terrorist attacks, governments accelerated measures to deter economic crime, particularly money laundering. However, businesses and individuals are also victims of such crime, including fraud and corruption. The Economist, May 3rd 2002.

Tax Havens Stymie Judge Garzón's Investigations: Spanish judge Baltasar Garzón investigations into alleged money laundering, tax evasion and embezzlement of funds, and possible blackmail payments to illegal Basque organisation ETA are being frustrated by a lack of cooperation from authorities in Gibraltar, Cayman Islands, Monaco, Puerto Rico, Liechtenstein, the British isle of Jersey, and the northeastern U.S. state of Delaware. Inter Press Service, April 30,2002.

Barclays handled cash stolen from SCH's Banco Noroeste in Brazil: Barclays PLC handled about $8 million of cash stolen from Banco Santander Central Hispano SA's Banco Noroeste in Brazil. The original theft of $242 million, an upfront fee fraud, involved two people posing as the Governor and Deputy Governor of the Central Bank of Nigeria.

Criminals rush for Euros: Finnish police are faced with the extraordinary task of tracking large amounts of illicit funds during the changeover to the common European currency. October 1, 2001.

Report on Money Laundering Typologies 2003-2004: One of the topics covered in this report from FATF is terrorist financing in relation to money laundering.

Israeli bank in money laundering probe: Twenty-two employees of Hapoalim, one of Israel's biggest banks, have been arrested following a year-long investigation into alleged money laundering worth hundreds of millions of pounds. The Times, March 7, 2005.

Israel troops raid Ramallah banks: Israeli troops have swooped on several banks in Ramallah.Israel has justified earlier bank raids as part of efforts to trace foreign funding for Palestinian militants. BBC, 25 February 2004.

Arafat's Wife at Centre of Money Laundering Inquiry: French prosecutors have launched a money-laundering probe into suspected million dollar transfers to accounts held by the wife of Palestinian leader Yasser Arafat. 13 February 2004.

French bankers held in laundering probe: The president of Société Générale was detained by police in connection with a money laundering network stretching between France and Israel. BBC, Monday, 14 January, 2002.

Argentina's banking scandal deepens: A congressional committee originally set up to investigate accusations that the governor, Pedro Pou, had failed to investigate cases of alleged money laundering through Argentina's financial system will also investigate the bank's directors. The BBC, 21 February, 2001.
See also Scandals involving Central Banks
French judge: Indict Leumi France on money laundering: French Investigating Judge Isabelle Prevost Desprez ordered eight French banks, including Banque Leumi France, to be indicted on serious money laundering charges. The affair was uncovered over a year ago, as part of a suspected money-laundering scheme that originated in Israel. 7 October 2003.

Peru spy chief’s Swiss millions frozen: Switzerland has frozen some $50 million in five bank accounts linked to Peru's ex-spy chief, prompting the Peruvian government to launch a probe into allegations that Vladimiro Montesinos laundered money through Swiss banks. November 3, 2000.

SFBC orders removal of bank’s general manager: Switzerland's Federal Banking Commission (FBC) has ordered Bank Leumi, Israel's second biggest bank, to replace the head of its Swiss banking subsidiary after it failed to exercise due care in opening a bank account for Vladimiro Montesinos, the former Peruvian spy chief. 13 November 2001.
N.B. Compare this case with the plot of Into the Fire, a fictional account of a Peruvian spy chief involved in money laundering, written before this revelation. A new edition of the novel is now out!
The Peruvian efforts to recover proceeds from Montesinos’ criminal network of corruption: A paper by Guillermo Jorge Executive Director, Program on Corruption and Governance, Universidad de San Andrés, Argentina.

New Book Accuses Luxembourg Clearing House Of Money Laundering: The book "Revelations" by Ernest Backes, an ex-banker and and Denis Robert, a French investigative reporter, accuses Clearstream of having been involved in money laundering. Ulrika Lomas, Tax-news.com, Brussels 28 February 2001.

Labour donor link to money-launder scandal: A businessman who has made big donations to the Labour party is under investigation by Swiss authorities on suspicion of helping to launder millions of dollars looted in one of the biggest thefts in history by the former dictator of Nigeria, General Sani Abacha. Guardian, February 28, 2002.

FSA Report on accounts linked to General Abacha: UK banks are criticised in the report by the Financial Services Authority (FSA) into their role in the looting of Nigeria by the late dictator General Sani Abacha.

Bureau de Change Laundered £70 million: Ussama El-Kurd who used a bureau de change in London as a front for what is believed to have been Europe's largest money laundering operation was jailed for 14 years and fined £1 million. Daily Dispatch (South Africa), February 27, 1999.

Sweeping it Under the Carpet: the Role of Accountancy Firms in Money Laundering: by Austin Mitchell, Member of Parliament, House of Commons, UK, Prem Sikka, University of Essex, UK and Hugh Willmott, University of Manchester Institute of Science and Technology, UK. A draft of a paper presented at the Critical Perspectives on Accounting Symposium, Baruch College, New York, 26-28 April 1996.

Financial Crimes and Money Laundering: A report by the U.S. Department of State Bureau for International Narcotics and Law Enforcement Affairs. It includes information on money laundering in about 200 countries and territories around the world.

Why the War on Money Laundering is Counterproductive: A paper by Richard W. Rahn, author of the End of Money, at the Anti-Money Laundering 2001 conference.

International Narcotics Control Strategy Report, 1997 : Money Laundering: A detailed account of the relationship between drug trafficking and money laundering.

On 'Cooling Hot Money': Transatlantic Trends in Drug-related Money Laundering and its Facilitation: An article by Nigel South, Professor of Sociology, University of Essex, England.

Moneylaundering.com: News about money laundering from the publishers of Money Laundering Alert. Subscribers can search the journal archives back to 1989.

Money Laundering Training Multimedia and Video: Details of training materials for different types of financial organisations.

Money Laundering Training Solutions by Easy i: Easy i specializes in communicating complex but critical issues, such as anti-money laundering prevention, to employees.

Money Laundering Bulletin: This claims to pay more attention to UK and international issues than Money Laundering Alert does.

ICA Money Laundering site: Guidance and advice from the Institute of Chartered Accountants in England and Wales.

Billy's Money Laundering Web Site: The history of money laundering, the methods used, its effects, UK legislation and efforts to combat it, and particular cases such as Operation Green Ice and Operation Dinero are just some of the topics covered by this site.

Modelling Global Money Laundering Flows: A paper containing estimates of the total amount of money laundered and also a ranking of individual countries according to their perceived attractiveness to money launderers. By John Walker Crime Trends Analysis Services.

Investigation & Control of Money Laundering via Alternative Remittance & Underground Banking Systems: A report by Christine Howlett who was awarded a 2000 Churchill Fellowship for the investigation.

Money Laundering Fears Surface in Fiji: Fiji authorities believe there could be as many as ten money laundering operations working in the country.

Niue calls for Pacific Island states to stand together: Niue has called on Pacific Island states to stand together against allegations from developed nations that they are being used as money laundering centres.

The Dominion of Melchizedek - A Fictitious Nation: An account of the various frauds, apart from money laundering, associated with the non-existent country.

The Dominion of Melchizedek: The home page of a country that exists only in cyberspace.

Electronic Money Laundering: A report by Department of Justice Canada. October 1998.

Detecting Money Laundering Actions Using Data Mining and Expert Systems: A presentation by Ekrem Duman with Ayse Buyukkaya at the NATO Advanced Study Institute on Mining Massive Data Sets for Security, September 10 - 21, 2007, Villa Cagnola - Gazzada - Italy.

An A to Z of money laundering: Crooks and terrorists both need to move money around. BBC, 15 March 2002.

Labour donor link to money-launder scandal: A businessman who has made big donations to the Labour party is under investigation by Swiss authorities on suspicion of helping to launder millions of dollars looted in one of the biggest thefts in history by the former dictator of Nigeria, General Sani Abacha. Guardian, February 28, 2002.

How Money Laundering Works: An introductory article by Julia Layton at the How Stuff Works website.

Americas Software: A firm based in Miami which designs and implements software for detecting money laundering and suspicious financial transactions.

Operation Casablanca continues its sweep: The largest drug money laundering case in U.S. history led by the U.S. Customs Service linked some Mexican banks and banking officials with the laundering of Juarez and Cali cartels' drug profits, and the most recent arrests extend the operation's reach to Venezuelan banks and banking officials US Department of the Treasury, May 20, 1998.

Banking On Cocaine: A "sting" operation in the US leads to the arrest of 31 Mexican bankers.

Cafe Americain-style: US Customs set up a firm called the Emerald Empire as part of Operation Casablanca to trap people laundering the proceeds of illicit drug sales.

Operation Juno: In September 1996, the DEA and the Internal Revenue Service began a pro-active undercover money laundering sting investigation called Operation Juno.

Raul Salinas accused of $100m drugs laundering: The Swiss authorities say more than $100m of drugs money was deposited in Swiss banks by the brother of the former Mexican president, Carlos Salinas. The BBC, October 20, 1998.

Wyoming court convicts Atlantan in investor scam: Six defendants were convicted of money laundering in a scheme that originated in Wyoming and duped hundreds of Atlanta business people into believing promises of a $1.5 trillion fortune, purportedly amassed by former SBC Chorco Chairman and British businessman Leslie Chorlton and linked to funds held by the CIA, the Mafia and the Vatican. Atlanta Business Chronicle, January 3, 1997.

Off Shore, Corruption and Money Laundering - General Analysis: A collection of articles by the Global Policy Forum.

Gryzlov Airs Two Money Laundering Probes: The fight against money laundering has been brought to new heights in Russia after investigations against two suspected medium-sized banks were made public by Interior Minister Boris Gryzlov. Moscow Times, October 8, 2003.

A Clear and Present Danger: It's been called the greatest theft ever. In the past decade between $200 billion and $500 billion has been gouged from the Russian economy. Four Corners, Australian Broadcasting Corporation, May 2001.

Barclays drawn into Russian metals lawsuit: Russian Aluminium, the world's second largest aluminium producer, is being sued for $2.7 billion by three rival metals companies. The lawsuit includes accusations of murder, fraud, bribery and money laundering. Sunday Times, 22 April 2001.
For a thriller about murder and fraud in the Russian aluminium industry see Forged Metal by Lesley Campbell.
Swiss want Yeltsin aide extradited: The Swiss Government has formally asked the United States to extradite former Kremlin property manager Pavel Borodin, to face prosecution in connection with money-laundering allegations. The BBC, 5 February 2001.

Russian Crime Finds Haven in Caribbean: By Douglas Farah, Washington Post Foreign Service, Monday, October 7 1996. Russian organized crime groups, flush with billions of dollars looted from the former Soviet Union and profits from drug trafficking and other criminal activities, are using unregulated and secretive Caribbean banks to launder their illicit gains.

Russia sues Bank of New York for $22.5 billion: Russia's Federal Customs Service has filed a $22.5 billion lawsuit against the Bank of New York for money laundering. Forbes, May 17 2007.

Redwash: the untold story of the Bank of New York, global money laundering and financing of international terror: It was called "the bank heist of the 20th century," "the biggest financial scandal of all times" and was investigated by the FBI, the Federal Reserve Board, the New York State Banking Department, the banking and law enforcement authorities of Switzerland, Italy, Russia, Cyprus and other countries, yet the only person sent to jail was a low level clerk.

Russia Hid Hard Currency: In an effort to hide funds from creditors, Russia transferred billions of dollars of its hard currency reserves to a fund management company in the Channel Islands tax haven of Jersey. CNN February 12, 1999.

Following the Rouble: While the Russian scandal bears all the hallmarks of the typical money laundering scheme, it is complicated by last years' financial crisis. The BBC, Wednesday, October 6, 1999

Using Falun Gong to Amass Dirty Money, and Committing Economic Crimes of Tax Evasion and Money Laundering: The Chinese embassy in Canada claims that the Falun Gong religious sect has been involved in money laundering.

Souls of Discretion: by Eduardo Galeano. An article from the New Internationalist magazine, October 1998, about Swiss banks and money laundering.

Money laundering in cyberspace: Money laundering is bolstered by the near anonymity that can sometimes be achieved through internet communication. BBC, 2 February 2001.

Cleaning up money laundering on Net: by Rose Aguilar. At a meeting in San Francisco in 1996 government finance officials from 27 countries discussed ways of preventing money being laundered in cyberspace.

Cyberlaundering: Anonymous Digital Cash and Money Laundering: for a seminar at the University of Miami School of Law.

The Nugan Hand Bank: Michael Hand, a former American soldier who fought with distinction in Vietnam, co-founded the Nugan-Hand Bank with Australian Frank Nugan in 1973. The bank is suspected of being used by the CIA to finance covert operations and to have laundered the proceeds of drug and arms sales.

Clinton's Money Laundry: Allegations that various banks, not just the now defunct Nugan Hand Bank, have been involved in money laundering for the CIA. By Sherman H. Skolnick.

Outrageous Extravagance

2009-03-09T13:21:00.001-07:00

Ex-RBS chief Sir Fred Goodwin plans to ride out pension storm abroad: Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, is considering leaving Britain to avoid the growing row over his pension payout of more than £30 million. The Times, March 4, 2009.

Battle Over Bonuses: Govt. Says Bank of America Threatens to Sue Employee Willing to Talk: The battle for bonus figures in the New York State investigation into the merger of Merrill Lynch and Bank of America got even uglier with the bank "threatening to sue" a former employee who was willing to unconditionally tell the state's attorney general which Merrill high-fliers received the thickest slices of a $3.6 billion bonus pie that was dished out on the eve of the January merger. ABC News March 6, 2009.

Wall Street bankers keep two thirds of bonuses: Bankers in America’s financial heart saw their bonuses fall by only a third last year, despite the financial devastation wreaked on Wall Street. Times, January 29, 2009.

Donate big bonuses, mayor urges: Bankers could help rebuild their "public esteem" by donating large bonus payouts to charitable causes, London Mayor Boris Johnson has said. BBC, 31 January 2009.

City Boy: The website of Geraint Anderson, better known as "City Boy", the author of the book, City Boy: beer and loathing in the Square Mile.

City Boy: so hard to love: A profile of Geraint Anderson, author of City Boy. Times, June 19, 2008.

City Boy: so hard to love: A profile of Geraint Anderson, author of City Boy. Times, June 19, 2008.

City Girl: The website of a young, dynamic banker working in the City of London whose articles have appeared in the London Paper every Monday.

Bonus Backlash Brewing: The very people who brought us the global financial crisis are now getting ready to reward themselves for a job well done. Forbes Magzine, October 30, 2008.

Goldman ordered to justify billion-dollar bonus pot: Goldman Sachs,along with eight other leading US banks, has been instructed by influential Congressman Henry Waxman to provide the information as part of an investigation into whether taxpayer's money will be used to support remuneration pools. Daily Telegraph, 28 October 2008.

Market woes fail to dent City's hunger: with bonus season now in full swing, belts will need to be loosened a notch or two as City high-fliers splash out £1,000 for a single meal. Daily Telegraph, 28 January 2008.

City high-fliers feast on £1,000 bonus banquets: Just as the passengers on the Titanic continued to feast as their ship was sinking, so City slickers are booking specially designed, £1,000–a-head “bonus banquets”, apparently oblivious to the risk of being sunk by a recession. Times, January 26. 2008.

What do bankers spend their bonuses on?: Bonus season has kicked off and for all the fears of an economic slowdown, fresh tales of City splurges are still emerging. Guardian, December 14 2007.

Barclays man earns a record £22m: Bob Diamond, head of Barclays investment banking service earned £22m in salary, shares and bonuses last year. BBC, March 26, 2007.

Britain's best-paid banker: Roger Jenkins, head of principal investing and private equity at Barclays Capital, is said to earn as much as £75 million a year. Evening Standard, 19 January 2007.

Britain's best-paid banker: Some sources claim Roger Jenkins earned as much as £75m. Evening Standard, 19 January 2007.

Top partner at Sloane Robinson gets £58.6m: Hugh Sloane raked in £58.6m in less than a year and a half. Financial Times, January 15 2007.

£50m man tops the bumper payday: Driss Ben-Brahim of Goldman Sachs will forever be known as the £50m man. He was the talk of the City as the annual round of bonuses reached hitherto unseen heights. The Guardian, December 14, 2006.

Soaring City bonuses "hit £8.8bn": More than 4,000 City workers will take home £1m bonuses this year as the stock market has soared and takeover deals have surged. BBC, 30 October 2006.

Hong Kong banker wins salsa case: Monica Wong, a prominent Hong Kong banker, has won back millions of dollars paid to famous salsa dancers for private lessons. BBC, 6 September 2006.

Hong Kong banker pays a world record price of of 95,000 euros for a truffle: It was sold at an auction of white Alba truffles held on 13 November 2005.

Banker with 'insane' bonus says £36,000 drinks bill is on him: A financier ran up a £36,000 bar bill after announcing to delighted revellers "the drinks are on me". At the end of the night the man, who said he was a hedge fund manager and had just been paid an "insane" bonus, left a £3,000 tip for the waitress. Scotsman, 1 October 1 2005.

Banker spends £36,000 on drinks in hotel bar: A banker racked up a drinks bill of £36,000 after going on a spending spree in a the Baglioni hotel in London. He said that he was a hedge fund manager who had earned £3m from one deal. Guardian, October 1, 2005.

Banker's £41,000 champagne spree: An investment banker from Monaco has been landed a £41,000 bill after ordering more than 70 bottles of champagne and spraying it around the VIP room of a nightclub in Soho. BBC, 18 August 2005.

Spitzer seeks $100M from Grasso: New York Attorney General Eliot Spitzer filed a lawsuit against former New York Stock Exchange Chairman Richard Grasso and the exchange Monday, seeking the return of some of Grasso's $187 million pay package. "You can't pay the head of a not-for-profit that much money," Spitzer said. CNN, May 24, 2004.

Bankers sacked over £44,000 meal: Five investment bankers from Barclays Capital who spent more than £44,000 on wine at a top London restaurant to celebrate a successful deal have left their posts. BBC, 25 February, 2002.

Gluttons for punishment: More information about the notorious Petrus dinner.

Five Barclays Bankers Lose Jobs Over Very Expensive Meal: One summer evening, July 5, 2001, six bankers celebrated a business deal with dinner at a London restaurant. Several hours and three bottles of Chateau Petrus later, they had run up a bill of more than £44,000 - according to Guinness World Records, the most expensive meal per capita ever.

The Flaming Ferraris: Their style of celebrating their success gained them plenty of publicity in Britain and around the world early in 1999 before claims of illegal trades in the Swedish stock market led to their downfall.

Embarrassing E-Mails and E-mail Harassment

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There have been a number of occasions in recent years of where lewd e-mail messages have been widely circulated in financial centres. The resulting embarrassment might be considered more than punishment enough, but in some cases people involved have also lost their jobs.

City worker suspended over salacious email: Robert Imlah has reportedly been suspended from JP Morgan Cazenove after boasting about his sex life on an email which circulated worldwide. Daily Mail, 20 January 2006.

Saucy email woman returns: Sharon Dyson flew back from a business trip to Sydney to face the furore she unwittingly caused by sending an intimate email to her boyfriend, 25-year old PR executive Alex Hewson. Evening Standard, 10 March 2004.

The Peter Chung Email: Peter Chung got a lucrative job in the South Korean office of the Carlyle Group, a major international investment firm but was sacked after a vulgar e-mail message describing how he was looking forward to erotic adventures was widely disseminated. May 2001.

One click from humiliation: Mary B. Callahan received a message from a man at a New York investment bank asking for a date. She intended to forward it to a friend after adding some indiscrete comments but instead hit "reply". The Age, September 18 2002.

City worker suspended over sex e-mail: A City worker, Trevor Luxton, who sent an email to friends boasting about a sexual conquest while his fiancee was away was suspended by Credit Lyonnais. He subsequently resigned from his job. 3 October 2002.

City worker suspended over sex e-mail: Trevor Luxton, who works for French bank Credit Lyonnais in London has been suspended after an e-mail he is alleged to have sent to friends about an alleged sex act was spread across the internet. October 3, 2002.

Email boaster gets his comeuppance: Bradley Chait, the boyfriend of Claire Swire, faced disciplinary action after forwarding to his friends an intimate message from her which then got forwarded around the world. The Guardian, Friday December 15, 2000.

Royal & Sun Alliance sacks 10 over obscene emails: A lewd e-mail picture showing the cartoon character Bart Simpson in a sexual clinch has cost 10 people their jobs.

Banker Accused of E-Harassment: A judge ordered a former Smith Barney investment banker to appear in court next month on charges that he harassed top executives at the firm by allegedly sending a series of phony email messages. Michael Lissack faces eight counts of aggravated harassment. Reuters, Aug. 20, 1998.
N.B. Lissack was in dispute with the firm at the time because he acted as a whistleblower on questionable practices.

Bullying

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City worker wins bullying charges: A high-flying City trader, Steven Horkulak, won £1m in compensation from his former employer, the international broking firm Cantor Fitzgerald. Horkulak quit his job in June 2000 because Lee Amaitis, the head of the company's UK division, used "the language of criminal intimidators". BBC 31 July 2003.

Ageism

2009-03-09T13:20:00.001-07:00

Schroders faces ageism suit: Michael Dobson, chief executive of fund management group Schroders, has been accused of firing the head of the firm's US operation, Sharon Haugh, because she was too old for the job at 55. Jill Treanor, the Guardian, October 9, 2002.

The Media and Women in Banking and Finance

2009-03-09T13:19:00.000-07:00

Katherine the Great joins Morley: A huge restructuring of Morley Asset Management was on the cards after Katherine Garrett-Cox, dubbed "Katherine the Great" by the City, was named as chief investment officer. The Guardian November 4, 2003.

The fair sex and the City: An article from the Evening Standard about influential women in the City of London. 30 January 2001.

Poor Robin: A report on a rotten week for WestLB's high-profile banker. Daily Telegraph, 28 September 2003.

Boxclever blow for Saunders: An article about Robin Saunders' meteoric rise to fame and the controversies that have dogged her during 2003. This is London, 24 September 2003.

"Superwoman" Horlick Stays Put To Save Family: Nicola Horlick has abandoned her plans to work for AMP in Australia as a move at this time would not be in the best interests of her family. January 2004.

Cynthia Cooper, Coleen Rowley and Sherron Watkins: Time Magazine's Persons of the Year 2002. They took huge professional and personal risks to blow the whistle on what went wrong at WorldCom, Enron and the FBI.

Women's Networks

Women on Wall Street: Women on Wall Street (WOWS) is an annual conference sponsored by Deutsche Bank's Global Partnership Network for Women The network has sponsored the Women on Wall Street conference since the conference's establishment in 1995. Details of past conferences not only on Wall Street but also in London and Frankfurt are included.

City Women's Network: The UK's premier network for senior executive women.

Girlfriends in High Places: A report on professional networks for women by Helen McCarthy for the Demos thinktank.

Women in Banking and Finance: A non-profit making leading professional organisation committed to empowering its members in the banking and finance industry to realise their full potential.

Racism

"Racism" Analyst Accepts Settlement: Fadil Dookhy, a city analyst who claimed he was the victim of "institutional racism" at the world's biggest financial services, group has accepted an undisclosed sum in settlement. The Evening Standard, 19 March 2004.

Firm pays £500,000 for ordering Jew to dress as Hitler: A Jewish stockbroker sued his former employer for racial discrimination after being ordered to wear a Nazi uniform to work as punishment for tardiness. Laurent Weinberger, whose grandmother died at Auschwitz, received an estimated £500,000 from the London brokerage firm of Tullett & Tokyo Liberty in compensation. July 13, 2001.

Legal battles loom in London: Among the cases facing Merrill Lynch in London is a race discrimination case brought by Farhoud Moaddel, a former employee who claims he was ousted after failing to fit in with colleagues. The Observer, April 14, 2002.

Sexism in The City of London and elsewhere in Britain

2009-03-09T13:18:00.002-07:00

City broker dressed as "Borat's bitch", employment tribunal hears: Rosemarie Corscadden, a City broker, was made to dress up as a bunny and play one of "Borat's bitches" in a team building exercise. Daily Telegraph, 6 March 2009.
: Rosemarie Corscadden, alleged her boss at equity brokerage CA Cheuvreux compared his female staff to a "team of prostitutes". BBC, 2 March 2009.

Banker claims she was sacked for promoting son's pop career: Kate Cassidy, a City high flyer has started a £1.5 million High Court battle claiming she was sacked for spending too much time promoting her son's attempt to become a pop star. Daily Telegraph, 3 February 2009.

City worker paid less for 'not being Korean': Christine Jones, who is British, alleges she was treated like a "second-class citizen" at Woori Investment and Securities International, the UK arm of Korea's second largest investment bank, and she is demanding £400,000 in compensation. Daily Telegraph, 17 May 2008.

'Laddish culture' HSBC sacked me, says top female executive: Jacqueline Crawley who was HSBC's top-performing adviser seven years in a row claims she was forced out of her job because of the "laddish culture" in her office. Daily Telegraph, 21 April 2008.

City 'strip club culture is rife': Sexism is still rife in London's City financial district and more needs to be done to tackle practices such as taking clients to strip clubs, a report from the Fawcett Society claims. BBC, 1 April 2008.

City lawyer in £19million claim went skiing on sick leave: Gill Switalski took a week-long break in the upmarket French Alpine resort of Chamonix. Medical expert Professor Simon Wessely said this was 'incompatible' with her claim that a sexist bullying campaign at work left her with extreme health problems that left her incapable of working or even reading a newspaper. Daily Telegraph, 17 June 2008.

Bullied lawyer set to collect a record £13 million damages: Gill Switalski, a leading City lawyer is in line for a record £13 million compensation payout over claims she suffered bullying and sexual discrimination by her colleagues at F&C Asset Management. Evening Standard, 11 March 2008.

Venetia Thompson: How I found my City limits: The life of a broker can be riotous, but when Venetia Thompson chronicled its excesses, she was quickly out of a job. Daily Telegraph, 7 March 2008.

Sexual discrimination in the City: A huge sexual discrimination claim worth more than $1bn is currently being brought against a major investment bank in London and New York as a class action for 500 women. BBC, 15 June 2007.

Trader loses discrimination case: Katharina Tofeji, a City trader who claimed a sexist work culture forced her out of BNP Paribas, one of Europe's biggest banks, has lost her £1.3m compensation claim. BBC, 22 June 2007.

City trader says bank's culture of sexism forced her out of job: Katharina Tofeji claims she was forced out of her job at the investment bank BNP Paribas after she had a baby. Guardian, April 17, 2007.

My high-flying City job was not worth a life of misery: "Cambridge graduate Polly Courtney was offered a prestigious job at a City investment bank. But her high hopes turned to despair." The Observer, 26 August 2006.

City woman who quit over sexism admits pole dancing: An article about Polly Courtney, Daily Mail, 30th August, 2006.

Polly Courtney's website: It contains details of her career and a book she has written inspired by her experiences.

Banker starts £11m sex bias suit against HBOS chiefs: Claire Bright, one of the most senior women at HBOS, began an £11 million lawsuit against bank executives over claims that she became suicidal after suffering sex discrimination from a male boss. Scotsman, 11 May 2006.

Sexism and the City: An article in the Evening Standard, Monday 1 July 2002, by Linda Davies, prompted by a number of high-profile sex discrimination cases in financial institutions that had recently been in the news.

Woman sues bank for £10m: Claire Bright claims that despite being in charge of £140bn in assets, she was suspended by she was suspended by bosses at HBOS "without reason" after she complained about her manager's behaviour. Daily Mail, 16 January 2006.

£800m sexism and the City law suit: Investment bank Dresdner Kleinwort Wasserstein is being sued for nearly £800m by six female employees in one of the biggest ever sex discrimination cases launched in the City and on Wall Street. Evening Standard, 10 January 2006.

Banker tells of bosses' nights lapdancing: Beth Baird is suing international bank Dresdner Kleinwort Wassertein for £500,000, claiming she was sacked because management knew she wanted a large family. Evening Standard, 13 January 2005.

"Boss's insults after I lost my baby": Diana Woodward, a senior banker who suffered a miscarriage and lost her job with Abbey National, described how senior managers set out to "destroy" her City career. Evening Standard, 15 October 2004.

Banker "not sacked for being gay": A former banker at HSBC was not sacked because he was gay, an employment court ruled. However 4 out of his 16 claims against the world's third-largest bank were upheld. The Guardian, May 5, 2006.

Baby a bar to getting work, mother told: Diane Winship, an accountant in the City of London who was sacked while on maternity leave was told to delete her daughter from her CV if she wanted to work again, she told an employment tribunal. Guardian, August 11, 2004.

Sexism and the City lawyer sues again: Elizabeth Weston, who won £1m from Merrill Lynch over a colleague's 'lewd' comments, is taking legal action again, claiming the investment bank is trying to sabotage her career. Sinead McIntyre, Daily Mail, 6 June 2005.

£1m for lawyer who suffered breast jibe: Elizabeth Weston, an executive at investment bank Merrill Lynch, has been offered the cash to drop her employment tribunal action against the firm. Evening Standard, 13 July 2004.

Sexism charges rock bank: A Sydney lawyer, Elizabeth Weston, has emerged in London as the latest woman to take on an international battle against investment giant Merrill Lynch on the grounds that it discriminates against women. The Sun-Herald, June 20, 2004.

Banker fails to make former employer pay up for legal costs: Stephanie Villalba, the former head of European private banking at Merrill Lynch, now faces a total bill estimated at up to £1m after losing her claim for nearly £600,000 legal costs. Personnel Today, 25 April 2005.

City banker's "liars" outburst: Stephanie Villalba who was attempting to recover £600,000 in legal costs accused four bosses at Merrill Lynch of lying on oath and misleading an industrial tribunal. Evening Standard, 17 March 2005.

Stephanie Villalba Loses Sex Discrimination Case: The former executive at the London offices of Merrill Lynch lost her £7.5m ($14.6m) sex discrimination case against the US investment bank but won her claim of unfair dismissal.

Banker's sexism claim adjourned: The £7.5m ($13.8m) sex discrimination claim made by former banker Stephanie Villalba against Merrill Lynch has been adjourned until 31 August. BBC, 22 June, 2004.

Sexism in City case under way: Stephanie Villalba, a former senior banker who is suing Merrill Lynch for £7.5m was "bullied and belittled" by her male boss, a tribunal in London has been told. BBC, 8 June 2004.

Banker wins sexism case: Arianna McGregor-Mezzotero has won her sex discrimination battle with her City employers. Evening Standard, 18 June 2004.

"Suicidal" trader ends court case: Helen McNallen, a City trader who claimed her £200,000-a-year job almost led her to suicide, has settled a case with her employers Commerzbank AG. BBC, 28 April 2004.

Bank boss jealous of adviser: Karen Smyth, a financial adviser, was awarded £59,030 in compensation when the Halifax admitted liability for her constructive dismissal. Daily Telegraph, 28 April 2004.

City firm "branded woman a whinger": Katherine Wallace a solicitor at a top City law firm claimed she was sacked two-and-a-half hours after telling her bosses she was pregnant. This is London, 29 March 2004.

HBOS faces sex case tribunal: The asset management arm of banking group HBOS faces a sex discrimination claim from one of its former senior fund managers, Christine Farquhar. The Guardian, July 11, 2003.

City banker wins dismissal tribunal: Carina Coleman won her case for unfair dismissal but she lost her claim that she had been a victim of sexual discrimination and unlawful deduction of wages. The Scotsman, 24 May 2003.

"Harassed" banker sent raunchy emails: Carina Coleman, the City banker who claims she endured a regime of sexual discrimination in her £350,000-a-year job admitted sending raunchy emails to the boss she accuses of harassment. Evening Standard, 2 May 2003.

UK Stock Exchange defends its boss: Clara Furse, the first woman boss of the Stock Exchange, has been the subject of malicious rumours. BBC, 17 February 2003.

Andrea Madarassy v Nomura International: judgment in full: The verdict in the case sex discrimination case Andrea Madarassy brought against the Japanese bank Nomura. The Times, April 7, 2006.

Banker attacks "Cinderella" sexism in City: Andrea Madarassy, who formerly worked for Nomura International, claimed she was reprimanded for not skipping lunch while she was pregnant and made to report to her manager every time she had to leave her desk due to morning sickness. The Guardian, November 15, 2002.

City discrimination case reopened: A high-profile sex discrimination case involving the multi-million pound bonuses paid to some City financiers has come back to haunt London investment bank Investec after Louise Barton won her appeal. BBC, 3 April 2003.

It's a man's world: Last week an investment bank trader accepted £70,000 for unfair dismissal. She had been asked to wear short skirts and give massages, and was made redundant while on maternity leave. Is this a rare incident or is the Square Mile still a haven for unreconstructed men? By Emma Brockes Monday March 19, 2001 The Guardian.

Is the City sexist?: The Square Mile is seen by many as a last bastion of male dominance. Former City worker Julie Bower has just won a sex discrimination case about unfair pay against Schroder Securities. Several other cases have highlighted the laddish and sexist behaviour of some City offices. BBC, 11 April, 2001.

The Woman Who Wouldn't Play City Boys' Games: Linda Davies describes her experience in the world of international finance before she gave up banking to become a writer.

Eleanor Mills meets Aisling Sykes: JP Morgan admitted it had behaved unfairly when it sacked a senior manager, Aisling Sykes who was sacked by JP Morgan, claims she was dismissed for trying to juggle her job and family. 16 January 2000.

Payout over sexism in the City: A woman who claimed she was forced to resign her high-flying City job over a pay dispute has won a sex discrimination case against her former employer. Julie Bower, 35, was earning £120,000-a- year as a senior analyst with Schroder Securities Limited, but resigned because her complaints about unequal pay went unanswered. BBC Tuesday, 10 April, 2001.

Sexist comments "forced banker to quit": Kay Swinburne, a successful City banker says she was the victim of sexual innuendoes and told a tribunal that she was forced out of her highly-paid job by a manager who continually referred to women as "hot totty" and a "bit of skirt". BBC, Thursday, 23 December, 1999.

"Massive" payout in bank sex case: A former high-flying City banker has been awarded a "massive" damages payout after a sexual discrimination case. In January, an employment tribunal found that Deutsche Bank failed to protect Kay Swinburne, from a "hostile environment" created by her male managers. BBC, 9 March, 2000.

£70,000 for City trader "asked to massage colleague": Isabelle Terrillon who alleged she was told by a male executive to wear "short, tight skirts" and asked by another to strip and give him a massage won £70,000 in an out-of-court settlement with Nomura International. The Daily Telegraph, 13 March 2001.

A repeat of Sex and the City: How the accounting profession is damaged by sexism. By Damian Wild, editor of Accountancy Age, 5 July 2002.

Sexism in Australia

Christina Rich in £2 million settlement: Christina Rich the highest-paid partner in PriceWaterhouseCoopers' office in Australia, has received £2 million in one of the world's biggest ever payouts for a claim of sexual harassment. Daily Telegraph, 1 April 2008.

Sexism on Wall Street and elsewhere in the United States

A bad victory for women: Laura Zubulake, a 44-year-old former Wall Street banker, won £15.6m in a sex discrimination case. For all her triumphant rhetoric, cases such as this one set women back decades. Put very basically, Zubulake won £15.6m because she didn't much care for being called plain. India Knight, Sunday Times, April 10, 2005.

"Too ugly" banker wins £15million: Laura Zubulake, a top Wall Street executive has won almost £15.5 million in damages from banking group UBS in one of the largest ever sex discrimination awards to an individual. London Evening Standard, 7 April 2005.

Morgan Stanley And The Women: Does Morgan Stanley have a women problem, or does Allison Schieffelin have a Morgan Stanley problem? Forbes Magazine, July 7, 2004.

Complaint filed by Allison Schieffelin against Morgan Stanley: A copy of the document filed by her attorneys outlining the case against the bank.

CEOs Went Wild, and So Did This Author: A review of the book, Testosterone Inc.: Tales of CEOs Gone Wild by Christopher Byron. Fortune Magazine, May 2004.

Spitzer announces settlement with Wall Street firms in major discrimination case: Agreement Will Help Ensure That Women and Minorities are Treated Fairly in the Securities Industry. March 23, 2000.

Tales from the Boom-Boom Room: Women vs. Wall Street by Susan Antilla: A book by the reporter who broke the story of sex discrimination at Smith Barney, Merrill Lynch and other major brokers. It is based on the experiences of the lead whistleblower, Pam Martens.

Smith Barney Wins Arbitration Order in "Boom Boom" Case: Two female plaintiffs in the famous Salomon Smith Barney “Boom Boom Room” sexual harassment case were ordered by a U.S. District Judge in New York on Friday to submit their claim to an NASD arbitration panel. Rick Weinberg, May 4 2002.

Smith Barney Sexual Harassment Case: 26 women filed a class action suit in federal court claiming sexual harassment and sex discrimination at Smith Barney.

NOW set to name new "Merchant of Shame" as it Protests Corporate Giants from Wall Street to Main Street: In the largest such suit against a Wall Street investment firm, 26 women have charged that sexual harassment and other discrimination took place at branch offices in 11 states.

Adams investor lost sexual harassment suit in Ky: The shareholder responsible for ousting Barbara Davis Blum, the former chairman, chief executive officer and president of Abigail Adams National Bancorp, was hit by a sexual harassment lawsuit which supporters of Blum claim showed he did not have the interests of women at heart. Washington Business Journal, June 12, 1998.

Sex, Harassment, Racism, Embarrassing E-Mails, & Outrageous Extravagance

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The banking industry and the financial services sector in general have received plenty of bad publicity in recent years, much of it well-deserved. Although rogues can be found in every occupation the City of London and Wall Street seem to attract more than their fair share.

Sexual Harassment, Sexism and the City

Many of the cases of scandalous behaviour involve sexism and sexual harassment. No doubt it could be said in defence of those accused in such cases that the increasingly litigatious nature of British society, following the American pattern, encourages such claims, and that it would be a pity if fear of the legal consequences made people scared of flirting. An article in the Wall Street Journal on February 16, 2000 claimed that sex is secret of young businesswomen's success.

According to the Sunday Times on November 17, 2002, in an article about harassment on Wall Street, "men are sick of gender awareness and the politically correct culture." That may be so, but simple, common decency could have prevented both the original problems and the imposition of a culture that makes men feel resentful.

Regulatory, Supervisory and Investigative Organisations and their Activities

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Transparency International: A non-governmental organisation dedicated to increasing government accountability and curbing both international and national corruption.

World Bank Institute Governance Group: The Governance group of the World Bank Institute (WBI) facilitates action-oriented and participatory programmes to promote good governance and curb corruption in its client countries.

OECD: Corruption: The OECD has assumed a leading role in preventing international bribery and corruption. The website provides detailed information about its efforts.

GRECO: Group of States against corruption: The aim of the GRECO is to improve its members' capacity to fight corruption by monitoring the compliance of States with their undertakings in this field. It was established by the Council of Europe but membership is open to any state that meets the relevant criteria and the United States joined in 2000.

Combating economic and organised crime: A Council of Europe website with information about efforts to combat corruption, cybercrime, organised crime, moneylaundering and trafficking in human beings.

The United Nations Office on Drugs and Crime: The United Nations Office on Drugs and Crime (UNODC) is a global leader in the fight against illicit drugs and international crime. Established in 1997 through a merger between the United Nations Drug Control Programme and the Centre for International Crime Prevention.

UNICORN: UNICORN is a Global Unions Anti-corruption Network which aims to mobilise and support trade unions to combat corruption. It was set up in 2001 as a joint initiative of three major international trade union bodies: The Trade Union Advisory Committee to the OECD (the TUAC); Public Services International (PSI); and the International Confederation of Free Trade Unions (ICFTU).

Stability Pact Anti-corruption Initiative: Information about international efforts to combat corruption in Southeastern Europe.

UK Treasury Annual Fraud Reports: An analysis of reported fraud in Government Departments together with anti-fraud guidance produced by the Treasury.

Fraud Advisory Panel: The Fraud Advisory Panel is an independent body of volunteers drawn from the public and private sectors. Members include representatives from the law and accountancy professions, industry associations, financial institutions, government agencies, law enforcement, regulatory authorities and academia.

Serious Organised Crime Agency (SOCA): SOCA was created by the British government in April 2006. It has taken over the functions of the National Crime Squad (NCS), the National Criminal Intelligence Service (NCIS), the role of HMRC in investigating drug trafficking and related criminal finance and some of the functions of the UK Immigration Service (UKIS) in dealing with organised immigration crime.

The Serious Fraud Office: The aim of the SFO is to investigate and prosecute serious and complex fraud and so deter fraud and maintain confidence in the probity of business and financial services in the United Kingdom.

Fraud Reduction website: This website is published by the National Working Group on Fraud on behalf of the UK Association of Chief Police Officers (ACPO). The website deals primarily with commercial fraud in a policing context.

Committee on Standards in Public Life: The Committee on Standards in Public Life was set up in October, 1994. Its terms of reference are: To examine current concerns about standards of conduct of all holders of public office, including arrangements relating to financial and commercial activities, and make recommendations as to any changes in present arrangements which might be required to ensure the highest standards of propriety in public life.

The Independent Banking Advisory Service: IBAS is an organisation for helping people in disputes with British banks.

Office of the Banking Ombudsman: Describes the functions of the British banking ombudsman and gives information onhow to submit complaints. Various publications including the annual reviews are available online.

British Bankers' Association: Among its many services the BBA provides information about the prevention of fraud and money laundering.

UK Financial Services Authority: The FSA regulates the financial services industry and has four objectives: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

Get Safe Online: A website produced by the British Government in cooperation with HSBC, Microsoft, the Serious Organised Crime Agency and other organisations to give advice on problems ranging from computer viruses and spam to online rip-offs and identity fraud.

Home Office - Identity Theft: A website produced by the Home Office Identity Fraud Steering Committee, a collaboration between UK financial bodies, government and the police to combat the threat of identity theft.

Consumer Direct: Scams: Advice on how to recognise and avoid scams, from Consumer Direct, a telephone and online consumer advice service, supported by the (UK) Department of Trade and Industry.

OLAF European Anti-Fraud Office: Press releases and reports from OLAF, the European Commission's anti-fraud office.

European Court of Auditors: It describes itself as "the financial conscience of the European Union.

U.S. Securities and Exchange Commission: The SEC is an independent, nonpartisan, quasi-judicial regulatory agency with responsibility for administering the federal securities laws.

US Financial Crimes Enforcement Network (FinCEN): FinCEN was established in 1990 by the US Treasury Department to collate, analyze, and disseminate information on financial crimes, especially drug money laundering.

Internet Crime Complaint Center: The Internet Crime Complaint Center (IC3) is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).

NASD Regulation Inc.: is the independent subsidiary of the National Association of Securities Dealers, Inc. charged with regulating the securities industry and the Nasdaq Stock Market.

Cybercrime: The website of the Computer Crime and Intellectual Property Section (CCIPS) of the Criminal Division of the U.S. Department of Justice.

Inter-American Convention Against Corruption: A convention adopted in March 1996 by the Organization of American States.

RespondaNet : The Americas' Accountability/Anti-Corruption project: The AAA is funded through the United States Agency for International Development (USAID), Bureau for Latin America and the Caribbean, and aims to support anti-corruption initiatives and to strengthen public sector financial management. A bilingual English/Spanish site.

Royal Canadian Mounted Police: Frauds and Scams: Information from the RCMP about how to recognise, report and stop frauds.

Australia Scamwatch: An official Australian government site with warnings about various types of scams.

Financial Arbiter of the Czech Republic: Contains annual reports and examples of the arbiter's work.

Nigeria's Economic and Financial Crimes Commission: Economic and financial crimes like Advance Fee Fraud (419), money laundering, and corruption etc have had severe negative consequences on Nigeria, including decreased foreign direct Investments in the country and tainting of Nigeria's national image. Recognition of the magnitude and gravity of the situation led to the establishment of the Economic and Financial Crimes Commission (EFCC).

Professional Bodies, Investigative Services, Forensic Accounting, Pressure Groups etc.

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Biginsiders.org: BigInsiders.org is an evolving nonprofit research tool for investors, regulators and journalists. Its mission is to document relationships and chains of influence among powerful people in business and government. The organization has a large and growing database of insiders and nearly 4,000 publicly traded corporations and will also include senior government officials and influential public policy figures.

Mutual Reference: This service is based one previously provided by the London Stock Exchange, the Stock Exchange Mutual Reference Society (SMRS). It is designed as a reference point for authorised securities firms to check against when taking on a new client and is a very effective tool in the prevention of bad debt, fraud and money laundering. It is not a credit reference service.

Auditors and the Reporting of Illegality and Financial Fraud: A paper by Professor Roman Tomasic, University of Canberra which discusses the debate on the responsibility of auditors. In addition to Australian cases the situation in Britain and the United States is also discussed.

CSCAP Working Group on Transnational Crime: The Council for Security Cooperation in the Asia Pacific established this working Group to study major transnational crime trends affecting the region as a whole, to consider practical measures for combating transnational crime, and to foster international cooperation.

Ethics in Financial Services Network: EfisNet is an organisation created to promote ethics and accountability in the (UK) financial services industry.

UK Card Fraud Conference 2007: The theme of the conference, in London on 24th and 25th January 2007 was Meeting the new fraud challenges.

Card Watch: The UK banking industry's body that works with police, retailers and organisation including Crimestoppers to fight plastic card crime.

Association for Accountancy & Business Affairs: AABA, an independent British voice on accountancy and business affairs, is working for an open and democratic society. Its web site operates from the USA where it is protected by that country's freedom of information laws.

The Compliance Exchange: A compilation of links to information sources that will be useful to compliance officers and other executives engaged in the business of managing investments or regulating investment business.

The Corner House: Since its founding in Britain in 1997, The Corner House has aimed to support democratic and community movements for environmental and social justice.

International Intelligence Limited: A firm providing risk management, due diligence and financial investigation services worldwide. All of their personnel have military, special forces, intelligence or technical backgrounds.

Hill & Associates: One of the world's leading risk management consultancies, with offices in many Asian countries as well as the United States and the United Kingdom. Among the many risk management services they offer are computer forensics, business intelligence, due diligence, fraud investigation and forensic investigation.

Compliance Online: The UK's retail life & pensions compliance portal. This site has a lot of useful information for people wanting to make complaints.

National Association of Bank / Insurance Customers: A British organisation for helping customers with complaints. It has links to associated groups in other countries.

The Association of Certified Fraud Examiners: This is a 25,000-member professional organization dedicated to fighting fraud and white-collar crime. With offices in North America and Europe - and chapters around the globe - the Association is networked to respond to the needs of anti-fraud professionals everywhere.

National Fraud Information Center: The NFIC was originally established in 1992 by the National Consumers League, the oldest nonprofit consumer organization in the United States, to fight the growing menace of telemarketing fraud by improving prevention and enforcement.

Judicial Watch: Judicial Watch, Inc. was established in 1994 to serve as an ethical and legal "watchdog" over our government, legal, and judicial systems to promote a return to ethics and morality in American public life.

The Association of Certified Forensic Investigators of Canada: A non-profit organization whose objective is to promote and foster a national forum and governing body for the affiliation of professionals who provide to the public, governments and employers, their expertise and services in the areas of fraud prevention, detection and investigation.

International Fraud Prevention Research Centre: The IFPRC based at Nottingham Business School, has strong industry links and is funded by channelling its income into research projects and is developing fraud databases for research purposes.

Combating Commercial Fraud: A conference at St John's University, New York, 11-12 November 2004, sponsored by the Institute of International Banking Law & Practice, and the International Banking Security Association.
SAFE: Struggle Against Financial Exploitation: SAFE are fighting for the implementation of rules promoting ethical banking as well as transparency and redress for those who had their lives ruined, homes and businesses taken away by the financial institutions with the assistance of the courts.

Fraud$, Fake$ & Deception$: The 3rd Annual SOLON Behaving Badly Conference, Thursday 18 - Friday 19 September 2003 The conference was organised by the The Nottingham Trent University-Museum of Law Partnership in conjunction with the International Fraud Prevention Research Centre.

The Journal of Forensic Accounting: An independent international forum for the publication of significant research dealing with the models and methodologies of investigative and forensic accounting, seeking to establish a balance between theoretical and empirical studies, and striving to foster practitioner-academic dialogue and collaboration.

The 23rd Cambridge International Symposium on Economic Crime: The symposium was held at Jesus College, Cambridge, 4th-11th September 2005.

The Economic Crime Forum and the Financial Crime Forum: Details of future meetings are posted at the Forum site as and when they become available.

Global Crime, Corruption, and Accountability: an International Symposium: Details of a conference that took place in 1999.

The International Financial Fraud Convention: Ever since the first International Financial Fraud Convention took place in November 1995 in London, senior regulators, government representatives, chief executives and board members have met regularly to discuss how to tackle this problem.

Internet Center for Corruption Research: A joint initiative of the University of Passau and Transparency International, this service is intended to serve as an outlet of academic research to the media and as a discussion forum for academic research on corruption.

The Center for Public Integrity: The mission of the Center is to provide the American people with the findings of investigations and analyses of public service, government accountability and ethics related issues.

The Anti-Corruption Network for Eastern Europe and Central Asia: The ACN brings national governments from above 20 countries from the region together with the OECD governments; it is also open for the civil society and business representatives.

Standing Group on Organised Crime blog: This is one of the European Consortium for Political Research standing groups. It aims to promote research in transnational organised crime across different disciplines, and co-operation and communication among the scholars and practitioners internationally through conferences and electronic communications.

Inner City Press: A non-profit community, consumers’ and civil rights organization based in New York City, engaged in reporting and organizing in the fields of community reinvestment, fair access to credit, insurance and telecommunications, environmental justice, and government and corporate accountability.

Anti-Phishing Working Group: Phishing attacks involve the mass distribution of 'spoofed' e-mail messages which appear to come from banks, insurance agencies, retailers or credit card companies. These messages are designed to fool the recipients into divulging as account usernames and passwords, credit card numbers, etc.

Fraud, Phishing and Financial Misdeeds: A blog that is meant to educate people on how to protect their own assets through awareness. It can also provide resources for resolution to those who have been victimized.

Stamp Scandal: A website that campaigns against corruption in national postal administrations and scandals involving the Universal Postal Union.

Fordham Institute for Ethics and Economic Policy (FIEEP): FIEEP runs a Corruption Information Exchange Network with volunteers from all over the world.

National Association of Credit Management: The National Association of Credit Management's Loss Prevention department has been described as America's premier business credit fraud-fighting network. The Spirit of Zephon Lives On, an article in Business Credit told its story.

Northeast Insurance Anti-Fraud Group: The Group has grown to include representatives of more than 20 insurance companies throughout the Northeast area of the US, several offices of the FBI and US Postal Service as well as representatives from other federal, state and local law enforcement and regulatory agencies.

ChargebackPrevention.com: A service for reducing credit card fraud and chargebacks.

Greymans Risk and security Management: An international Business Risk Consultancy that provides support and solutions at every stage of the business process.

Stork: A strategic fraud and security resource in a world of business convergence. Stork, which is based in south west England, offers a wide range of services and does fraud investigations all over the world.
ICC Commercial Crime Services: This organisation, based in London and Kuala Lumpur, provides information and encourages companies to join forces in protecting themselves against all types of fraud. CCS is a non-profit crime buster which has been dedicated to combating frauds world wide since the early 1980s.

Michael G. Kessler & Associates Ltd: This firm that offers a wide variety of accounting and investigation services to counter the problem of fraud. Their site also includes an online newsletter and links to other relevant sites.

KPMG UK Forensic Overview: An outline of the forensic accounting services offered by KPMG.

Forensic Accountants appearing in the Literature: An article by D. Larry Crumbley, KPMG Peat Marwick Professor of Accounting at Louisiana State University, who has written a series of novels with the aim of present technical information in a way which facilitates learning and infuses student enthusiasm.

Deloitte & Touche Forensic Services: Details of the antifraud activities of the well-known accounting firm.

Forensic Accounting Ltd.: A British-based firm whose specialising in the area indicated by its name.

Fraud Hotline Homepage: A site for whistle blowers to report fraud. It is aimed at organisations in the United Kingdom only.

The Financial Ombudsman Service: A free, independent service for resolving disputes with financial firms in the UK.

UnjustIS: A British organisation campaigning for justice in cases where recourse to the Office for the Supervision of Solicitors, the Law Society, and the Legal Services Ombudsman has proved ineffectual. Many of the cases involve financial matters.

Integrity International: The Foundation was created to provide support to whistleblowers both in corporate and governmental institutions.

US Government Accountability Project: The Project’s mission is to protect the public interest by promoting government and corporate accountability through advancing occupational free speech and ethical conduct, defending whistleblowers, and empowering citizen activists.

Lawyers and Settlements : Financial Section: Par of America's largest public database of legal verdicts and settlements.

Corporate Europe Observatory: CEO, is a European-based research and campaign group targeting the threats to democracy, equity, social justice and the environment posed by the economic and political power of corporations and their lobby groups.

Corporate Watch: Corporate Watch says its mission is concerned with globalisation, genetic engineering, food, toxic chemicals, privatisation and many other areas, to build up a picture of almost every type of corporate crime and the nature and mechanisms of corporate power, both economic and political.

Transnationale.org: Transnationale.org provides comprehensive information on more than 10000 companies around the world. It reports social and environmental behaviour, financial data, list of brands, membership to the most influential lobbies, public relations and opinion making, managers name and position, shareholders and subsidiaries, plants locations and offshore centres, brand and corporate image management.

Endgame Research Services: The mission of the Public Information Network is to provide research services and training to citizens who are working for corporate and governmental accountability, and who are committed to socially just and ecologically sustainable societies.

Miscellaneous

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NameBase Public Information Research: NameBase is an online index to names of individuals, groups and corporations compiled from hundreds of investigative books and thousands of pages from periodicals over the past few decades. Areas covered include the international intelligence community, political elites from the Right and Left, the U.S. foreign policy establishment, assassination theory, Latin America, big business, and organized crime.

The US National Security Archive: The Archive is simultaneously a research institute on international affairs, a library and archive of declassified U.S. documents obtained through the Freedom of Information Act.

Due Diligence Investigation & Fraud Investigation Data: This contains about 95,000 names of which the great majority are from the United States, particularly Massachusetts.

The Pierpont Column: A regular feature by Trevor Sykes in The Australian Financial Review. The archives go back to 1995.

Magazines, Journals and Books

News items often have only a fleeting existence on the Web. To find links to items concerning relatively recent developments in financial matters use a database of journal articles. Many such databases are restricted to members of institutions which pay a subscription for access but there are some which are generally available to anyone.

Ingenta: A full-text database of over 5,000 journals. Individuals who are not members of subscribing organisations may purchase copies of most articles.

FindArticles.com: An archive of published articles from magazines on various topics, including business, that you can search for free.

Amazon: The world's best-known online book shop has a huge database. Amazon.co.uk is its British branch.

Library of Congress: You can search the catalogue of the world's largest library.

LibDex: Worldwide index of library catalogues, web sites and Friends of Libraries pages.

General News Sources

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Google News: About 4,500 news sources are covered by the search engine. It also has news archives and blog search facilities. Another useful feature is Google News Alerts. If you sign up for that service you will be informed by e-mail of any news related to your interests.

Yahoo! News: Another very large categorised directory of news stories.

Ananova: A directory of news stories arranged under various categories, including business.

Everything News!: Links to a variety of news sources from around the world.

Special Libraries Association News Division: The SLA gives information about the availability of newspaper archives on the web.

World Wide News Headliner: Direct access to many different Internet news sources.

World News Network: The main news stories from around the world.

Usenet News

Google Groups: Usenet news is a good source of gossip and information (or misinformation) about scandalous matters! Google not only provides access to current discussions but also has a searchable archive going back, in the case of some groups, all the way to 1981! In addition to the standard keyword searches it allows you to limit searches to particular newsgroups or people or time period, if you select the Advanced Groups Search option.

General Sources on Corruption or Alleged Financial Wrong-Doing

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Corporate Narc: The mission of CorporateNarc.Com is to educate the public in consumer affairs, to provide consumers with up-to-date business information and expose business fraud and corruption, as well as unfair and deceptive business practices.

Crimes of Persuasion: In depth explanations of various white collar crimes such as prime bank fraud, pyramid scams, internet fraud, phone scams, counterfeiting of financial instruments, chain letters, modelling agency and "Nigerian" scams, computer fraud and telemarketing fraud.

Crimenet: Con Artists and Scams: Part of an Australian site. It is possible to search the pages by name, location or keyword.

Offshore Business News & Research: OBNR provides offshore business information on companies and individuals operating in countries where independent and accurate information is often difficult to obtain. Since the launch of its investigative newsletters in February, 1997, the company has exposed numerous frauds in the Bermuda-Caribbean region.

The Independent Banking Advisory Service: IBAS exists to give advice to people who are having problems with banks in Britain.

National Association of Bank/Insurance Customers: An independent self help group for all private and commercial users of UK bank and insurance services.

Global Investor Calendar of Conferences on Crime and Fraud: Details of forthcoming conferences on crime and fraud.

Corruption et criminalité économique: A large selection of links from the Strategic Road site which also covers many related topics. There are also details of books in French on corruption.

Restitution and Unjust Enrichment: An excellent guide to legal resources from around the world.

Shmuel Vaknin's Web Site: Vaknin is an Israeli economist. His site has several articles on financial scandals, including one on the Typology of financial scandals. Although many of Vaknin's articles deal with the Macedonian economy he claims that the Macedonian economic experience is so generic and so widespread, so varied and so concentrated - that it really served as an ideal laboratory.

Mario's Cyberspace Station: A website covering espionage, political wrong-doing, and corruption. It is the creation of Mario Profaca, a Croatian journalist. Among the pages are ones on scandalous money and dirty money.

International Consortium of Investigative Journalists: Some of the stories in its website deal with financial scandals.

About Identity Theft: AboutIdentityTheft contains a large collection of articles written by experts who continually update and add new content.

Phishing scams: 5 ways to help protect your identity: Advice from Microsoft on how to avoid frauds.

Common Frauds: Information from Lloyd's bank about common frauds involving e-mail messages.

Internet Scambusters: A free electronic newsletter on Internet-based scams. The site has links to other relevant sites.

White-Collar Crime Fighter: A monthly newsletter with useful information about the latest frauds, scams and schemes...and the newest and most effective crime-fighting tools, techniques and technologies around.

How to Avoid Fraud?: Advice of a Swiss Bank Agent, provided by cs-trans.biz, a network of international business resources, powered by lawyers, academicians, bankers, journalists and translators worldwide,

Skolnick's Report: Sherman Skolnick is a legal researcher whose website often has articles about alleged financial wrong-doing.

AuditNet's Fraud/Investigative Resources: Links selected by Jim Kaplan of AuditNet.

Yahoo Internet Fraud links

Royal Canadian Mounted Police: Scams / Frauds: The RCMP website provides information on the latest scams.

Quatloos Directory of Scams & Traps: Various categories of common financial scams are explained.

Pyramid Schemes: A page by Robert Teeter outlining what is wrong with pyramid schemes and containing links to additional sources of information.

The Diligizer Board: This Board has been created for those who seek information regarding the backgrounds of and/or the experiences others have had with individuals/entities who/which have offered or are offering high-yield investment opportunities (HYIP) to investors worldwide.

Social Justice and Economic Freedom: A site with emphasis on the political aspects of economic scandals.

Bill Tupman's Transnational Crime page: Part of a website maintained by a senior lecturer at the University of Exeter. Among the links are some on economic crime.

Miscellaneous Articles on Fraud, Corruption etc.

Psychology of Risk, Speculation and Fraud: The text of a speech at the Financial Panel 1997 of the European Research Center, Amsterdam, 11 June, -Will the EMU Pay Off? Anticipating the Effects on the Market, in which a novelist who is herself a former banker explores the motivation of speculators and fraudsters and how the former can degenerate into the latter.

Ten of the world's greatest frauds: A list of remarkable frauds from the Times, December 15, 2008.

The Nature, Extent and Economic Impact of Fraud in the UK: A report for the Association of Chief Police Officers' Economic Crime Portfolio, February 2007.

Financial scandals alive and well in 2003: The year in review from MSNBC.com.

Corporate crime wave: The New Internationalist magazine devoted its July 2003 issue to this subject.

Corporate Malfeasance: An article about how trusted financial market aprofessionals abandoned ethical principles repeatedly, in both bull and bear markets.

Value Quotes: Quotations on values and business ethics from Socrates to Hsi-Tang, from Genesis 1:1 to the Dalai Lama, and from Warren Buffett to George W. Bush.

Civilising Mammon: Fraud and Profit in Nineteenth-Century London: An account by Paul Johnson, professor of economic history at the London School of Economics and Political Science, of two frauds, one involving the naval hero Lord Cochrane and the other Harry H. Marks, a newspaper editor and member of parliament.

Human nature in financial boom and bust cycle: An essay on the scandals of the first few years of the 21st century compared with the situation depicted by Fred Schwed jnr, in his 1940 book, Where Are the Customers' Yachts?.

The Cycles of Financial Scandal: A article on waves of financial scandals from the 19th century onwards. New York Times, July 17, 2002.

Prime Bank / High Yield Investment Schemes: An article exposing a common scam. The authors are Joel E. Leising and Michael McGarry, two attorneys who are experts on fraud cases.

The 100 Top Corporate Criminals: Russell Mokhiber and Robert Weissman. A list of firms ranked by the sizes of fines imposed on them by American courts. There is a brief summary followed an annotated list with more details of the reasons for the fines.

Greenspan on Challenges facing community banks: Fraud has been a factor in a number of recent bank failures in the United States, according to Federal Reserve Chairman Alan Greenspan (March 2000).

Financial Regulation in Denmark and Britain: Summary of a thesis by Ben Kjeldsen.

Danger - Banks Ahead!: by Sam Vaknin who claims that banks are the most unsafe institutions in the world. Every few years there is a major collapse of hundreds of them worldwide.

In Praise of Insider Trading: An article by Matthew O'Keeffe published by the Libertarian Alliance which argues that insider trading should not be a crime.

Books on Fraud, Ethics and the Law: Various books on these subjects published by the Institute of Internal Auditors.

Institute of International Banking Law & Practice: Fraud Publications: It is possible to place orders online.

Episodes of Financial Fraud and Speculation: Thayer Watkins of San José State University discusses a couple of classic cases: Alves Reis, the notorious counterfeiter of Portuguese currency, and the collapse of the Penn Square Bank of Oklahoma City.

Robber Baron: The Life of Charles Tyson Yerkes by John Franch: Charles Tyson Yerkes (1837-1905) was one of the most influential and controversial public figures in America. Robber Baron is the first biography of the traction magnate who was behind the Chicago Loop Elevated, an investor in the London Underground, namesake of the University of Chicago's observatory, and vilified as Frank Cowperwood in Theodore Dreiser's trilogy trilogy, The Financier, The Titan, and The Stoic.

Economic Crime: Beyond Good and Evil: An article in pdf format by Ian O. Angell, LSE Centre for Computer Security. The author claims that the growth of economic crime is a sign of the loss of faith in the nation state and that definitions of crime are simplistic.

The Spiral of Fraud: An excerpt from the book "Policy Ensurance" compiled by Tony Braga.

The Financial Crime Conference, London 1995: A report of the papers by Jimmy C. Tseng.

National Westminster Bank Fraud: A web site created by Umang Malhotra to publicise his disputes with the National Westminster Bank.

Go to the top of the page

Useful Sources for Further Research

Guides to Business Information

Finance, Insurance and Real Estate: An extensive directory of links prepared by Louisiana State University Libraries.

Web Sites Covering Business News

Financial Times: The website of one of the world's best-known business newspapers.

Wall Street Journal: A subscription only site.

CNNfn's searchable archive: News items from the CNN Financial Network.

BBC Business News: The main news stories from Britain and around the world.

Financial Director: The website of a monthly British business magazine.
NewsNow: Business news stories. The site is updated every 5 minutes.