...surety bond is a contract in which the surety promises to the judgment creditor if the judgment debtor loses the appeal. The surety will pay the full amount plus interest that has accrued during the appeal. A surety must be a person or business that can demonstrate that it has sufficient assets to pay the amount assured. In contrast, a property bond is when the judgment debtor posts his/her owners’ equity in real property as a bond. The debtor executes a mortgage or deed of trust to the trustee to convey real property to the clerk as a stay bond. 4. When property is exempt from execution, the judgment creditor cannot seize and sell that property to satisfy the judgment. States put these rules in place as a matter of public policy. Leaving a debtor destitute would often result in the debtor becoming a ward of the state, and is not in the states interest. If final judgment is entered in a federal court, state property exemption laws are generally used to enforce judgment. When a final judgment is entered in one state and the debtor owns property in another state, the law of the state where the property is located will control the exemption issue. 5. A homestead exemption allows the judgment debtor to retain some or all owner’s equity in the family home or domicile. If a debtor’s equity in the homestead exceeds the applicable homestead exemption, the executing creditor can force the property sold, pay the debtor the homestead amount and apply the rest to the debt. In some states the...
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...incurred by both lender and creditor. The creditor holds reasonable rights towards the debtor. (Bankruptcy, 2013) With Biblical precedence our bankruptcy laws have the benevolent intent that the debtor can recover from his hardships and receive a “fresh start”. The Bible does not prohibit all borrowing. Jesus’ testimony regarding borrowing and lending settles the validity of the issue. He declared in Matthew 5:42: “Give to the one who ask you, and do not turn away from the one who wants to borrow from you.” Specifically looking at Carl’s matter, the Bible does warn against not paying back debts. “The wicked borrows and doesn’t pay back, the righteous is gracious and gives.” (Psalms 37:21) “Owe no man anything, but to love one another” (Romans 13:8), living in bondage to the financiers of this world system should not be away of life. We should not be enslaved to lenders. Carl’s creditors have the right to pursue debt collection; he being the debtor should pursue a lawsuit in an attempt to collect any available cash or assets to satisfy the debt (Create, 2013). His actions prove he is not financially intelligent, in regard to rolling his credit and other debt onto the home mortgage. For his benefit Carl should file for bankruptcy according to bankruptcy code chapter 13 in order for the judge to plan a repayment for the debt incurred, which will take place over a five-year period. (Create, 2013) This will allow Carl to keep his assets and to stop the creditors threats....
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...involuntary bankruptcy by its creditor which in this case the partner Bernan is filing bankruptcy. The partner Bernan, as a good chance of the case being file because the general partnership owes their business more than $10,775. The Walnut Street Four fits into the group that can file bankruptcy since it’s either a farmer, nonprofits, banks, insurance companies, credit union or saving and loan institutions. The group as missed many payments at a large amount. In order for most case to process a debtor has two have twelve or more creditor and three of them has to sign the petition for bankruptcy. In this case the creditor is filing because the partnership stop making payments and now is in debt over $380,000. Since the other two partnership choose to not make payments it makes sense for Bernen to file Chapter 7 to completely dissolve the business. When filing a Chapter 7 in bankruptcy this involves closing shop and liquidating a debtor assets. ** Case 11 Richard P. Friese Chapter 11 is a way for a person to reorganize their personal finances under to the watch of the courts. In most cases the debtor can operate business while going through the bankruptcy procedures; this called debtor-in-possession. In this case the court cannot confirm Mr.Friese plan of reorganization. Since none of the creditor has agreed to the term the acceptance method is rejected. In order for the court to use the cram-down provision at least one creditor has to accept the claim of his...
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...What are some of the factors that might be considered in deciding whether a debtor should be allowed to declare bankruptcy? Why are these factors important? Chapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages, but at the same time they are very different. Without knowing these differences a person could lose many things from money to possessions. Chapter 7 bankruptcy can wipe out most of ones debts, but certainly not all of them. Certain kinds of debt are not covered by the terms of Chapter 7. Some examples of debts that must be paid after filing for bankruptcy would include child support, alimony, income taxes and penalties, student loans, and court ordered damages due to unfair and unrighteous acts. Bankruptcy courts handle your financial problems until the case ends. A court assumes control of all ones debts that are owed and all property that is not exempted. A trustee is appointed to be in charge of your debt. The trustee collects property that can be taken and sells it to repay some creditors. That property can be surrendered to the trustee, which can agree to pay the market value or one may choose to trade exempt property with nonexempt property. A small number of people actually lose property when filing bankruptcy. If a person changes their mind about filing for bankruptcy, they may ask the court to dismiss the case. At the end of the process, the court would discharge most of the debts and one is unable to file for another Chapter...
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...month of June 2012. All Cash transactions are referred to Cash at Bank. June 2012 1. Owner invested Rm30,000 in cash, car valued at Rm20,000 and furniture valued at Rm5,500 to start the business. 2. Paid rent of Rm2,000, and bought stationery costing Rm500 for cash. 3. Paid for insurance Rm200. 5. Purchased office equipment costing Rm5,000 paying Rm1,000 as down payment with the balance to be paid by 30.6.2008. 7. Purchased goods for resale on credit Rm8,000. 8. Sold goods for Rm5,000 on credit. 9. Paid travel expenses Rm6,00. 12. Sold goods for cash Rm2,500. 14. Paid trade creditors Rm5,000. 16 Received from customers Rm4,500. 19 Sold goods on credit Rm3,500. 20 Purchased goods for cash Rm1,500. 23 Collected from customers Rm2,500. 25 Paid utility bills Rm800. 28 Paid creditors the balance due for office equipment. 29 Bought delivery van costing rm50,000, paid Rm10,000 cash, with the balance to be settled later. 30 Owner withdrew cash rm2,500 and stock costing Rm2,000 for personal use. 30. Paid salaries of workers Rm12,000. Record the above transaction in ledgers and prepare a trial balance on 30 June 2008. Solution to Q1 Capital Account Date | Details | Amt RM | Date | Details | Amt RM | 30.6. | Bal Car/ for | 55500 | 1.6. | bank | 30000 | | | | | M/car | 20000 | | | | | furniture | 5500 | | Total | 55500 | | Total | 55500 | Motor car Account ...
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...business from a creditor without a personal guarantee even if the creditor has security against all of the business. If you sign the typical standard guarantee form used by creditors, you may be giving up rights designed to level the field. Some terms of the creditor guarantee are not in your best interest. . But what is a guarantee, what defences do you as a guarantor have and what are your rights? If you must pay under the guarantee, can you recover the money and how? Before you sign a guarantee, whether to support your business, or to help a relative or friend, you should know the answers to these questions. You should also consult a qualified lawyer to make sure the guarantee is not any broader than absolutely necessary. A guarantee is a contract between the guarantor (the person that gives the guarantee) and the creditor (typically the creditor that makes the loan). As a contract, it must meet theessential conditions required to form a valid and enforceable contract. There must be certainty of the terms of the guarantee: what is the extent of the guarantee, when can the creditor call for performance under the guarantee, and how can it be revoked. There must be some consideration for the guarantee as with all contracts. Usually this is the loan made to the business. It could also be an agreement to hold off taking some action that the creditor is otherwise entitled to take, or allowing more time for the business to meet its obligations to the creditor under the existing...
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...1180. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of Article 1197. Conditional Obligation Pure and Conditional Obligation Art.1181. In conditional obligations, the acquisition of rights, as well as extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition. Every obligation which contain a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event. (1113) Pure Obligation Example: • A obliges himself to pay B ₱1,000.00 • C binds himself to pay D ₱500 upon demand of D. Example: X binds herself to give Y a gold wrist watch if Y will get married on December 31, 2014. Condition TWO PRINCIPAL KINDS OF CONDITION: 1.) SUSPENSIVE CONDITION 2.) RESOLUTORY CONDITION Example: Example: Gabriel binds himself to deliver a determinate car to Ben if the latter will marry Coleen. Gabriel binds himself to lend his only car to Ben until the latter passes the CPA examinations. • Obligations are immediately demandable in the following instances: 1.) When it is pure 2.) When the obligation is subject to a resolutory condition and period. • When duration of period depends upon the will of debtor: Period Example: “little by little”, “as soon as possible” , “at anytime I have the money” , “in partial payments” • If the debtor and creditor cannot agree...
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...ENFORCING JUDGMENTS - 1 [pic] KEY TERMS • "JUDGMENT CREDITOR" means the person who is entitled to enforce a judgment or order; and • " JUDGMENT DEBTOR" means the person who is liable to enforcement under the judgment or order, even though the judgment or order is not a money judgment . JD/JC GENERAL PRINCIPLES ♦ NATURE OF THE JUDGMENT ♦ NATURE OF THE ASSETS OF THE JUDGMENT DEBTOR ♦ NO STAY OF EXECUTION IN PLACE [pic] ♦ GENERALLY NO PERMISSION NEEDED BUT EXCEPTIONS INSTANCES IN WHICH PERMISSION REQUIRED for writ of execution PROCEDURE TO OBTAIN INSTANCES PERMISSION REQUIRED > Six years have elapsed since the judgment was entered > The JD has died and the JC wishes to enforce against assets of the deceased which have passed to the personal representatives. > The goods against which judgment is to be enforced are in the hands of a Receiver appointed by the Court > Statute requires it. PERMISSION ♦ Without Notice ♦ Must be supported by evidence on Affidavit • Applicant entitled to enforce • Person sought against liable to satisfy. • "Ground specific" information Methods of enforcing MONEY judgments |METHOD ...
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...AL 會計筆記 Reference: http://hk.f2.page.auctions.yahoo.com/hk/auction/b16111418 Contact : noteseller70@yahoo.com.hk ★★大家做會計題目時，硬係比一兩個entries卡住，最後永遠都bal唔到條題目。 ★★ 加上，相信大家做題目時好少寫番d tricky 位同特別既地方，就到exam時先再把題目重新做一次。但以AL 35mins/ 55mins 一條既速度，你又做得幾多條呢？ ★★ 我呢一份筆記記錄左AL pastpaper，HSSC papers同其他題目既tricky位，只要你考前睇一睇，記一記notes 寫的tricky位。對於經常番抄的學校題目同公開試題目，就自然得心應手，輕易拿得高分。 ★★ Paper 1 financial accounting 分開2 parts - (1)topic notes (over 100pages; $80) (2) pastpaper analysis (about 20 pages; $20) ★★ Paper 2 cost accounting 只有1 part - (1) pastpaper analysis (about 20 pages; $20) 歡迎留email，拎Sample。 General reminders |If mark-up or margin are given, the questions may require | |to find out the sales figures (cash or credit sales) | |to find out the inventory lost (by computing COGS) | |to find out the cost | |(required for RO, DR, closing inventory) | |to find out the selling price | |(required for RI, DA) ...
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...Turnover …………. Page 4 2.4 Debtor Turnover …………. Page 4 2.5 Creditor Turnover …………. Page 5 2.6 Find the Number of Turnover days …………. Page 5 2.7 Example …………. Page 5 2.7.a Calculation of Stock Turnover according to formula …………. Page 6 2.7.b Calculation of Debtors Turnover according to formula …………. Page 6 2.7.c Calculation of Creditors Turnover according to formula …………. Page 6 2.7.d Cash Operating Cycle period in days …………. Page 7 3. Conclusion …………. Page 7 1. Introduction When we begin our discussion on the role of financial indicators (ratios) in the monitoring of business performance, its means we discuss cash operating cycle. Cash operating cycle contains the elements of working capital which shows company`s financial position ie how the company earns profit and loss at the starting and ending of financial year. 2. Cash Operating Cycle The cash operating cycle summarizes the various statistics of cash flow and calculates the changes in cash position during financial year. The figure 2.1 shows the elements of Cash Operating Cycle. 2.1 Figure The analysis of figure 2.1: We can state that the cash operating cycle operates the activities of Stock turnover, Cash receipts from debtors or customers and cash payments to creditors or suppliers. 2. FINANCIAL INDICATORS (RATIOS) • STOCK TURNOVER • DEBTORS TURNOVER • CREDITOR TURNOVER 2.3 STOCK TURNOVER ...
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...individuals or businesses to satisfy debts. There are four types of bankruptcy. There is Chapter 7 which is a complete liquidation for individuals. Chapter 7 bankruptcy liquidates assets that are not exempt and uses the proceeds to pay creditors. In this bankruptcy creditors may be paid in full or a percentage based on the assets that were available. There is Chapter 11 which is for a business. Chapter 11 allows a business to reorganize its operation and finances so that it can pay its creditors. Sometimes in Chapter 11 another entity may take over the original entity in the reorganization. Creditors are told to give the entity time to reorganize and pay the debts. Then, there is Chapter 13 which is reorganization for individuals. Chapter 13 gives individuals a chance to pay creditors over 3 to 5 years through a Bankruptcy Trustee. Most assets can be kept depending on what percentage of the debts will be paid. If the debtor is paying the creditors in full then they would be able to keep all of their assets. This is only available for debtors with verifiable disposable income. The last type is Chapter 12 which is for farmers and fishermen (LII / Legal Information Institute). After completion of whichever chapter used, the creditor gets a “fresh start”. White Collar Crime Why is this considered white collar crime? Although there are people in blue collar positions that file bankruptcy, they usually don’t have many assets to hide. People in white collar positions...
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...it also consists of the giving of a thing (other than money), the doing of an act, or not doing of an act. - When debtor pays damages or penalty in lieu of the fulfilment of an obligation. When debt is considered paid Debt - May refer to an obligation to deliver money, to deliver a thing (other than money), to do an act, or not to do an act. 1.) Integrity of Prestation - A debt is not understood to be paid unless the thing or service has been completely delivered or rendered. Partial or irregular performance will not extinguish the obligation. - In case of partial performance there is no payment under the law and the creditor can refuse payment. - Creditor has the right to refuse partial performance or not to pay it. 2.) Identity of the Prestation - The very prestation due must be delivered or performed. - When existence of a debt is admitted by the debtor or established by the creditor, the burden of proving payment is upon the debtor. Requisites for when recovery allowed in case of substantial performance in good faith (article 1234): 1. There must be substantial performance. 2. The obligor must be in good faith. - Good faith is always presumed in the absence of proof. When recovery is allowed when incomplete or irregular performance is waived - Founded on the principle of estoppel. - The debtor is not liable for damaged suffered by creditor because the obligation is deemed to be complete. Requisites: 1. The obligee knows that the performance is incomplete...
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...Allstate Carting, Inc. b) The Debtor/Defendant, Phillip A. Romano was the President and other fifty-percent shareholder of Allstate. c) While engaged as a consultant, Farley became aware of the Romanos' practice of writing checks for personal expenses out of the company account. d) Allstate was in financial difficulty and failed to pay substantial debt to its unsecured creditors, while at the same time the Romanos withdrew large sums of money from Allstate. e) Romano filed a Chapter 7 bankruptcy petition in the District of Massachusetts. f) Farley filed an Amended Complaint against Romano and his wife and individually and on behalf of Allstate, seeks to except a debt he asserted was owed by the Romanos from discharge. g) Farley also argued that the Romanos' withdrawal of substantial sums from Allstate's checking account for personal expenses amounts to embezzlement under 11 U.S.C. ß 523(a)(4). * Issue: The issue was, whether or not any debt owed by the Romanos to Farley or to Allstate was non-dischargeable pursuant to 11 U.S.C.S. ß 523(a)(2) and ß 523(a)(4). Rule: Section 523(a)(4) of the Bankruptcy Code provides that a debtor may not discharge debt for embezzlement or larceny. Also Section 11 U.S.C.S. ß 523(a)(2) sates that a debt shall be excepted from discharge, when it is the result of debtor’s false statement, made with knowledge of its falsify, with the intent to deceive the creditor, and where the creditor justifiably relies on the representation...
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...recovered, whether as a matter of fact or of law. 3. Reciprocal obligations are those which arise from the same cause and in which each party is a debtor and creditor of the other, such that the performance of one is designed to be the equivalent and the condition for the performance of the other. 4. Pure obligation is one which is not subject to any condition and no specific date is mentioned for its fulfilment and is, therefore, immediately demandable. 5. Potestative condition- a condition suspensive in nature and which depends upon the sole will of one of the contracting parties. II. Discussions 1. Illustrate an obligation subject to: a. Suspensive condition- the fulfilment of which will give rise to an obligation (or right). In other words, the demandability of the obligation is suspended until the happening of the uncertain event which constitutes the condition. b. Resolutory condition- the fulfilment of which will extinguish an obligation (or right) already existing. What is the effect of the fulfilment of the condition in a conditional obligation? * Acquisition of rights * Loss of rights 2. If the condition is resolutory and if it is a negative conditional obligation. 3. No. It is stated that in suspensive condition, the obligation arises when it is fulfilled. 4. The debtor or obligor is entitled to the fruits accrued during pendency. 5. State the rules in case the thing to be delivered: * Lost of thing without debtor’s...
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...BACKGROUND Bankruptcy is a legal status of a person or organization that cannot repay their debts to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the creditor. Bankruptcy is not the only legal status that an insolvent person or organization may have, and the term bankruptcy is therefore not a synonym for insolvency. Bankruptcy lawsuit sometimes happens to many companies, when they can not pay their overdue debt or can not re-structure their liabilities to at least two of their debitor. In Indonesia, there are many of bankruptcy lawsuits, and one of the interesting bankruptcy cases happened at PT. Cipta Televisi Indonesia that ussualy known as a company who owned the Indonesian Educational Television (TPI). Bankruptcy as a means of debt settlement certainly has some direct and indirect effects on all parties that have an interest in the assets of the debtor declared bankrupt. Generally, if the debtor is a legal entity, the interests of the debtor, creditor and shareholders will be affected. For example, the declaration of bankruptcy by a company will negatively affect its shareholders' position in the liquidation process. Pursuant to Indonesia's Private Law, secured, preferred and unsecured creditors have different privileges against the assets of the debtor. Article 1132 of the Private Law states that a creditor's precedence over other creditors derives from privilege rights and security titles. A security title can be held by hak tanggungan...
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