“You Could Lose Protection: When you file for bankruptcy, you get something called an "automatic stay." This stops creditors from trying to collect money from you. If you miss payments, you could lose this protection.
Your Case Might Get Dismissed: In the worst case, the court could throw out your bankruptcy case. This means you'd lose all the benefits of filing for bankruptcy.
Creditors Can Start Collecting Again: If your case gets dismissed, your creditors can start asking for money again. They might even try to take your stuff or garnish your wages.”
“Deciding to surrender your car during Chapter 7 bankruptcy is not a decision to be taken lightly. It is essential to weigh the benefits and drawbacks carefully while considering your overall financial situation. Understanding what surrendering your vehicle entails, including the long-term implications for your credit and future transportation needs, is vital for making an informed decision.”
“In North Carolina, individuals filing for Chapter 7 bankruptcy can protect up to $35,000 of equity in their primary residence. This is due to the state's homestead exemption rule, which does not allow for the choice between state and federal exemptions, unlike some other states.”
“Bankruptcy can provide relief for individuals and businesses facing insurmountable debt. It is a legal process that allows borrowers to eliminate or repay their debts under the protection of the bankruptcy court. However, it's important to note that bankruptcy does not automatically eliminate administrative liens on your home. The impact of bankruptcy on administrative liens depends on the type of bankruptcy you file.”
“One of the major concerns with relying solely on Social Security is the uncertainty surrounding its future. The program faces financial challenges due to an aging population and a decrease in the number of workers supporting the system. While the government has taken steps to address these issues, such as raising the retirement age and increasing payroll taxes, there is still a level of uncertainty regarding the long-term sustainability of Social Security. Depending solely on this program for retirement income may expose individuals to the risk of reduced benefits or potential changes to the program.”
“In Chapter 7 bankruptcy, which is also known as liquidation bankruptcy, your non-exempt assets are sold to repay your creditors. If you've made substantial profits as a day trader after filing for Chapter 7 bankruptcy, those profits may be considered part of your bankruptcy estate. This means that the bankruptcy trustee has the authority to collect and distribute those profits to your creditors.”
“f you do not qualify for Chapter 7 bankruptcy, you may still be eligible for Chapter 13 bankruptcy or other debt relief options. Chapter 7 bankruptcy is designed for individuals who have little or no disposable income, whereas Chapter 13 is intended for those who have a regular income but are struggling to repay their debts.”
Many of the top companies in the world are backed by teams of experienced lawyers tasked with the job of finding clever ways of circumventing the law to allow these billion-dollar corporations to avoid lawsuits.
Decreasing taxes, sidestepping finance laws, and avoiding lawsuits from customers are a few examples of situations where large corporations utilize legal loopholes in order to remain successful.
Let’s discuss five legal loopholes large corporations use to avoid lawsuits:
1. Tax Havens and Transfer Pricing
2. Punitive Damages Deduction
3. Carried Interest
4. Patent Injunctions
5. Bankruptcy
International corporations are not required to pay taxes on any profits incurred overseas unless they transfer the profits to a US bank. Transfer pricing is a practice adopted by international corporations that allow companies to transfer international profits to offshore banks so that they’re considered overseas earnings. The profits are kept in an offshore account where taxes are indefinitely deferred.
When large corporations are found to be criminally liable for an offense and are charged with punitive damages, according to the law, these expenses are considered normal business expenses. Companies are therefore able to claim the cost of this lawsuit as a business expense and significantly reduce the cost to the company.
The managers and CEOs of the world’s leading companies are able to pay significantly lower taxes on their income than the average person. The profits earned from investing in a company are known as carried interest and are taxed at the capital gains rate which is a much lower rate than income. Instead of claiming to receive a salary for working at a company, CEOs and managers refer to their earnings as carried interest in order to avoid paying higher taxes.
Patent injunctions are used when a company believes that another organization’s product is infringing on its copyrights. If a judge grants the injunction, the opposing company is prevented from selling the infringing product. Corporations have used this threat as a scare tactic to influence small companies to discontinue selling their product or pay them an exorbitant fee. This method has ensured that larger corporations have been able to dominate their industry by monopolizing sales of particular products.
Large corporations sometimes use bankruptcy to avoid lawsuits. This is a controversial legal strategy that is still used today. Large corporations establish shell companies that take on legal liability while keeping their valuable business assets separate from this new company. The shell company then files for bankruptcy which in turn freezes any lawsuits associated with the company. The goal of this tactic is to permanently block or delay any lawsuits against the parent company.
Several different clever legal strategies have been utilized by companies throughout the years to avoid any legal ramifications for their actions. Bankruptcy, tax havens and transfer pricing, patent injunctions, carried interest, and punitive damages deductions are a few of the legal loopholes utilized by multinational corporations.
If you are already filling the pinch of the recession and you need to file bankruptcy please schedule an appointment with us here at Hishaw Law LLC. We are experienced in handling Chapter 7 and Chapter 13 matters. Please complete the online bankruptcy form. To schedule a consultation with Hishaw Law LLC please contact us at 1.307.228.0407
In 2022, Chapter 13 bankruptcy filings increased by 26.6% while business and other personal bankruptcy filings fell by 11.7%. Chapter 13 bankruptcy was established to provide debt relief to individuals who are struggling financially by giving them the grace to pay off their debts without the worry of losing their assets to creditors. In this article, we will discuss what is Chapter 13 bankruptcy and how it works as well as why there was an increase in Chapter 13 bankruptcy filings in 2022.
