BUSA 310 Lecture 8 CH 7 Company Bankruptcy laws Governed by federal law US does not make it punitive Other countries do not care 1 200 people in the US files bankruptcy No social stigma Company bailouts Costs to government Does it set a standard AIG GM the employment of 365 000 and the insurance that covers millions 3 goals of filing bankruptcy 1 Preserve as much of the debtors property as possible 2 Divide assets between debtor and creditor fairly 3 Divide assets between creditors fairly Liquidation Bankruptcy CH 7 File a voluntary petition but as an individual you have to go through credit counseling 180 days before CH 7 involuntary bankruptcy must have 3 sign off on petition and have to owe over 14 775 CH 7An individual has to earn less than median income for state and or cant play back 7 025 over five years If you don t qualify of those two then you must file under CH 11 Must file a petition list all assets debts expenses income history of how you got to where you are Discharge all debt is wiped out no longer responsible for paying bills back IF you don t list a debt or asset Exempt certain property under individual state law Voidable Preference Anyone paid within 90 days in full they can take the money back Privity child support back taxes etc Student loans are not typically dischargeable CH 13 360 475 owed in unsecured debt If you have 1 008 100 in secured debts Within 15 days of filing your petition you must file a plan Have to have plan set up for 3 years only can be extended to 5 under good cause they will make you redo it if not correct All creditors get notice to file proof of claim with bankruptcy court Bank of state charged with finding all assets filed and will distribute all the assets fairly to collectors Agency principles and agents Agents People that work for you are represent you Sometimes agents are not well defined Liability malpractice If you are aware of the agent then if you make a deal you have an option to sue agent and principle and both are held jointly and severable liable If agent is working for unidentified principle then both may be liable but generally can only collect from the agent and then the agent can sue the principle Undisclosed agent Have to look at who has the right to supervise the individual before you can determine liability Control1 Is person working within scope of what you intended them to do CH 18 Employment Law Most people work without contracts Conduct in the work place is governed by 1 Federal statutory law 2 State stat law and 3 Common law Provide reasonably safe work place No discrimination for any of variety of reasons race sex religion sexual orientation age etc If employ more than 50 people have to provide health insurance or pay a fine