CASE STUDY

Case Study



Case Study on Bankruptcy

Introduction

This paper is based on two case studies. These case studies are based on bankruptcy and mortgage law of England. This paper analyses two cases and the affected parties are advised in connection with the provisions of legal statutes, which govern the bankruptcy law.

Bankruptcy Law of the United Kingdom deals with the bankruptcy of businesses and people in the United Kingdom. Bankruptcy law of the United Kingdom follows a similar but separate set of principles. According to the insolvent Debtors Act 1813, the debtor could apply for release after 14 days in jail, an oath that their assets do not exceed a certain limit. But if any of their creditors objected, then they should stay inside. Attitude changed, however, and bankrupt (England) Act 1825, allowed people to start listening to their own bankruptcy.

In the United Kingdom, the bankruptcy court functions under the umbrella of federal judicial system. However, it is important to understand that each county has its own laws on bankruptcy. This created some unbreakable obstacles for creditors and debtors when dealing with different states. As a result, the legal system has been designed to have more power regarding the promulgation of decisions in this type of local county laws (Alkhafaji, 2003, 21). This is the reason why any person or company facing bankruptcy must first file a case at the local county court.

Now the system has been operational in all the English counties. Each county is responsible for the bankruptcy court in a certain region of the United Kingdom, London and Scotland. County Court judges are appointed for each judicial county by the United Kingdom Supreme Court (Alkhafaji, 2003, 22).

These local county courts are responsible for determining the settlement process on individual or business debts. The judge is also authorised to decide whether bankruptcy should be classified and the functioning of civil or criminal division. Once the decision has been made of the case is on the list for a hearing to be held with the debtor and other creditors.

Almost all bankruptcy cases are classified as civil matters (Balleisen, 2004, 14). There are some exceptions to be taken into account, however. If the debt has resulted in a criminal act, whether carried out by the debtor or creditors, they may be prosecuted to the full extent of the law. Sometimes, if the debtor was involved in a criminal act for the accounts will be assigned to criminal court as well.

Provisions of the British Bankruptcy Law

The legislative framework for the activities of collectors and of the banks of arrears has been particularly active form after the boom in consumer lending. Initially, loans and the procedure for collecting the debt was charged with lenders act on Fair Trade "in 1973 (Fair Trading Act). According to this act created an oversight body is accountable to Parliament for the implementation of the provisions of the law to regulate all aspects of the trade and customer service - Office of Director-General of Fair Trading (Office ...