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Written by: Robert DeMarco
In the Beginning – Code of Hammurabi
The concept of debt relief, in a very general way, is traceable to the Code of Hammurabi (c. 1795 – 1750 B.C.). King Hammurabi united all of Mesopotamia and ruled for forty-three years in Babylon. The Code of Hammurabi is one of the best preserved legal documents and fairly reflects the social structure of Babylon during Hammurabi’s rule. The Code contains two hundred eighty-two laws.
The Code of Hammurabi was harsh; providing for the imprisonment of debtors who are unable to satisfy their obligations. Code of Hammurabi Translated by L.W. King. with Commentary from Charles F. Horne and Claude Hermann Walter Johns, Law 115, Encyclopaedia Britannica (11th ed., 1910) (“If any one have a claim for corn or money upon another and imprison him; if the prisoner die in prison a natural death, the case shall go no further.”); Levinthal, Louis Edward, The Early History of Bankruptcy Law, 66 U. Pa. L. Rev. 223, 230 (1918). The Code was not, however, without mercy. The honest debtor also had the option of selling himself and or family members into slavery, for a period of no more than three years, in an effort to satisfy the obligation. Code of Hammurabi, Law 117 (“If any one fail to meet a claim for debt, and sell himself, his wife, his son, and daughter for money or give them away to forced labor: they shall work for three years in the house of the man who bought them, or the proprietor, and in the fourth year they shall be set free.”); see also, Early History, 237. Yet as harsh as this remedy was, the Roman debtor faired much worse. Early History, 231-232.
DATED: July 3, 2013
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Written by: Robert DeMarco
In the Beginning – Code of Hammurabi
The concept of debt relief, in a very general way, is traceable to the Code of Hammurabi (c. 1795 – 1750 B.C.). King Hammurabi united all of Mesopotamia and ruled for forty-three years in Babylon. The Code of Hammurabi is one of the best preserved legal documents and fairly reflects the social structure of Babylon during Hammurabi’s rule. The Code contains two hundred eighty-two laws.
The Code of Hammurabi was harsh; providing for the imprisonment of debtors who are unable to satisfy their obligations. Code of Hammurabi Translated by L.W. King. with Commentary from Charles F. Horne and Claude Hermann Walter Johns, Law 115, Encyclopaedia Britannica (11th ed., 1910) (“If any one have a claim for corn or money upon another and imprison him; if the prisoner die in prison a natural death, the case shall go no further.”); Levinthal, Louis Edward, The Early History of Bankruptcy Law, 66 U. Pa. L. Rev. 223, 230 (1918). The Code was not, however, without mercy. The honest debtor also had the option of selling himself and or family members into slavery, for a period of no more than three years, in an effort to satisfy the obligation. Code of Hammurabi, Law 117 (“If any one fail to meet a claim for debt, and sell himself, his wife, his son, and daughter for money or give them away to forced labor: they shall work for three years in the house of the man who bought them, or the proprietor, and in the fourth year they shall be set free.”); see also, Early History, 237. Yet as harsh as this remedy was, the Roman debtor faired much worse. Early History, 231-232.
DATED: July 3, 2013
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for July 02, 2013 Casey Anthony wins partial victory in bankruptcy court Textbook publisher Cengage files bankruptcy to cut debt Belle Foods bankruptcy: Grocery company struggles to pay debt
Many people are under the impression that bankruptcy will not eliminate or discharge student loan debt. While this is true, it may not be the case for everyone. In some cases, student loan debt may be causing the household an undue hardship. This may allow student debt to be eligible for elimination, but even if [...]
Congress took no action so the interest rate on federal Stafford loans rose as of 12:01am July 1, 2013. We’re still here to tell the tale.
It was like a summer blockbuster movie, complete with heroes and villains, the halls of power, and tension right up to the last second.
The media jumped all over it, trying to wipe the public into a frenzy.
The funny thing is that most people I spoke with didn’t know or care that student loan rates were going to jump as of July 1, 2013.
In case you don’t know, the rate on federal Subsidized Stafford loans went from 3.4 percent interest to 6.8 percent interest on Monday, July 1, 2013. Congress could have prevented the leap, but ended up bickering like an old married couple.
The cost of this monumental inaction? About $4,598.77 per student.
More Reasons It’s Not A Huge Deal
The interest rate was set to rise on new subsidized Stafford loans only.
Existing loans remain untouched.
New unsubsidized Stafford loans, PLUS loans, Perkins loans, and private loans remain untouched.
As of now, the most you can get in subsidized Stafford loans over your entire education is $23,000.
How The Interest Rate Affects New Borrowers
At 3.4%, you’ll pay $4,163.40 in interest over a 10-year repayment term.
At 6.8%, you’ll pay $8,762.17 in interest over a 10-year repayment term.
It comes out to $38.23 per payment.
It’s a difference, but not a monumental one that shatters the record books.
Get Angry About Something More Productive
If you come out of school with student loans, you’re likely in trouble anyway. Your income doesn’t keep pace with the cost of living, jobs are scarce, and all but a few at the top of the academic ladder are pulling down enough money to pay the student loans and groceries.
Rather than looking at the interest rate, consider some of the repayment options available to federal student loan borrowers.
Make some noise with your Congressional representatives to prod them into creating some protections for you on the private student loan front.
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Student Loan Rates Rise, Sky Doesn’t Fall was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
Many consumers and small business owners who consider bankruptcy protection are confused about the process due to many misconceptions or false information. While bankruptcy laws were updated in 2005, there still seems to be a considerable amount of misunderstandings about who can file and whether it damages your reputation. One of the most effective ways [...]
Every now and then I am asked whether debt from an SBA Loan can be discharged in a Chapter 7 bankruptcy. The short answer is "yes".
I am asked this question because it is linked to a government program. However, there is nothing special about a SBA loan compared to any other private business loan when it comes to bankruptcy. It is treated like every other loan. Like all other loans, however, a SBA loan would not be dischargeable if the loan was obtained by fraudulent means.
For the most part, business owners typically do not need to worry about whether their SBA loan will be discharged in bankruptcy. However, there can be a foreclosure issue. Many SBA loans are secured by a deed of trust on real property. Because of the deed of trust, the lender will have the right to foreclose on the property. In conclusion, even though you personally are no longer responsible for the debt, your lender can still sell your property through a foreclosure sale in a Chapter 7 bankruptcy.
Your After Bankruptcy Credit Report Your after bankruptcy credit report is a big part of your “fresh start” in bankruptcy. That’s why it’s my job, as your bankruptcy lawyer, to make sure your after bankruptcy credit report is right. Only a handful of bankruptcy lawyers see it that way, and I’m one of them. Mistakes [...]The post After Bankruptcy Credit Reports–Why You and Your Lawyer Need to Follow Up appeared first on Robert Weed.
A new study confirms what many American households continue to struggle with; debt from medical bills. When it comes to filing for bankruptcy such bills continue to be one of the main reasons why people seek legal protection. Besides rising medical costs, other reasons bankruptcy is commonly filed include unpaid mortgages and credit card debt. [...]
By John Clark
Actress Kelly Rutherford, who is embroiled in a very public custody battle with her former husband, Daniel Giersch, is filing for personal bankruptcy, according to a report from CBS News.
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Sources say the costs of the prolonged divorce battle, as well as the subsequent fight over child custody, has simply drained the finances of the former star of “Gossip Girl.”
Former Gossip Girl Files for Personal Bankruptcy Help
According to sources, Rutherford has paid roughly $1.5 million in legal fees during her effort to split from Giersch and retain custody of the couple’s two children, Hermes, 6, and Helena, 4.
Thanks to more than $2 million in debt, which would never be repaid with Rutherford’s current monthly income, which is reportedly just $1,279, the actress decided to file for Chapter 7 bankruptcy in California last month, according to reports.
In her bankruptcy petition, Rutherford claims that her assets are only worth a little more than $23,000, which pales in comparison to the more than $2 million in unpaid debts she reportedly owes, sources say.
And the actress has taken a significant pay cut since the end of “Gossip Girls,” the popular television drama for which she reportedly earned $486,000 during her final season of work.
To make matters worse, Rutherford also owes more than $350,000 to federal and state tax authorities, and has roughly $25,000 in credit card debt, according to sources tracking her bankruptcy filing.
In court documents, Rutherford claims to only have $11,487 in her checking account. Her other assets include $5,000 worth of furniture, $5,000 worth of clothes, and $1,500 worth of jewelry, sources say.
And according to sources, Rutherford has been forced to borrow tens of thousands of dollars from family and friends just to keep her head above water.
Bankruptcy Filing Follows Emotional Child Custody Dispute
Rutherford’s bankruptcy filing comes after she has spent several months fighting a decision by a Los Angeles judge that allowed her former husband to take the couple’s children to live with him in France.
Her former husband, who has been prohibited from visiting the United States because his visa was revoked, now lives in France, and the judge’s decision meant that Rutherford was travel long distances to see her children.
In a recent interview on ABC, Rutherford said her life has been “crazy,” and that her daughter recently told her that she wants to “come home” and “come back to New York.”
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