The legal classification of unsecured claims in the Insolvency Code, which determines the order in which unsecured claims are paid when there is not enough money to pay all unsecured claims in full. The general rule is that good law is the principal legal system that governs most aspects of the facts underlying the dispute. This does not mean that all aspects of factual circumstances are necessarily subject to the same legal system, but there is a strong presumption that they will (see characterization). Thus, the process of legal analysis carried out by the courts in each case identifies all the facts that have a specific geographical reference, such as where the parties are domiciled or their business operates, where an agreement has been reached, where relevant measures have been taken, etc. Once all relevant connecting factors have been identified, the law of the state with the largest number of connections is the appropriate law. In the event of a tie, performance-related connecting factors are weighted more strongly than the connecting factors in the form. In most cases, this weighting leads to a clear winner. Chapter 7 proceedings where a debtor withdraws a secured creditor`s priority in security by paying the secured creditor the value of the asset. The debtor can then retain ownership. Contracts or leases where both parties still have obligations to perform. If a contract or lease is enforceable, a debtor can take it back (keep the contract) or reject it (terminate the contract). A request made as a result of a proceeding by a losing party on one or more issues, for a higher court to review the decision to determine whether it was correct. To make such a request is to “appeal” or “to appeal”.
The one who appeals is called a “complainant”; The other party is the “appellant”. A court decision in a previous case with facts and points of law similar to a dispute currently pending in court. Judges generally “follow precedents,” that is, they use principles established in previous cases to decide new cases that have similar facts and raise similar legal issues. A judge will disregard precedents if a party can prove that the previous case was ill-decided or that it differs significantly from the current case. The right as set out in previous court decisions. Synonymous with precedent. Similar to the common law, which stems from tradition and judicial decisions. The legal power of a court to hear and decide a particular type of case.
It is also used as a synonym for jurisdiction, i.e. the geographical area over which the court has territorial jurisdiction to rule on cases. Chapter of the Insolvency Code that provides for “liquidation”, i.e. the sale of a debtor`s non-exempt assets and the distribution of the proceeds to creditors. To be eligible for Chapter 7, the debtor must pass a “means test”. The court assesses the debtor`s income and expenses to determine whether the debtor can sue under Chapter 7. A declaration by a debtor under Chapter 7 regarding plans for dealing with consumer debts secured by estate assets. The chapter of the Bankruptcy Act that provides for the adjustment of the debts of a person with a regular income is often referred to as the “employees” plan. Chapter 13 allows a debtor to keep their assets and use their disposable income to pay off debts over time, usually three to five years. A debt that cannot be eliminated in the event of bankruptcy. Examples include a home mortgage, child support or child support debt, certain taxes, debt for most government-funded or guaranteed student loans or benefit overpayments, debts for death or assault caused by driving under the influence of alcohol or drugs, and restitution debts or a penalty fine included in a judgment convicting the debtor of a crime.
Certain debts, such as debts of money or property obtained under false pretenses, and debts for fraud or forgery in the exercise of fiduciary capacity, can only be declared inexcusable if a creditor files a non-discharge action in a timely manner and wins. The legal system that originated in England and is now used in the United States is based on the articulation of legal principles in a historical succession of judicial decisions. Common law principles can be changed by statute. The Sentencing Reform Act 1984 abolished probation in favour of a particular penal system, in which the level of punishment is determined by penal directives. Now, without the possibility of parole, the court-imposed jail sentence is the actual time the person spends in prison. Where jurisdiction is challenged, one or more state laws are relevant to the decision-making process. If the laws are the same, it will not be a problem, but if there are substantive differences, the choice of applicable law will lead to a different judgment. Each state therefore creates a set of rules to guide the choice of law, and one of the most important rules is that the law to be applied in a particular situation is the right law. It is the law that appears to have the closest and most real connection to the facts of the case and therefore has the best claim to apply. The term “proper” refers to the old English meaning as “proper to”. In other words, the contract law or the contractual clause or the matter in question.
A fraudulent transfer of a debtor`s assets or for which the debtor receives less than the value of the transferred assets. The doctrine of correct law is applied in the choice of law phase of a conflict of laws dispute. The exemption of a debtor from personal liability for certain excusable debts. Notable exceptions to excusability include taxes and student loans. Debt relief relieves a debtor of personal liability for certain debts, called excusable debts, and prevents creditors who owe those debts from taking action against the debtor or the debtor`s assets to collect the debts. Debt relief also prohibits creditors from communicating with the debtor about the debt, including through telephone calls, letters and personal contacts.