Failure to strictly follow these rules could lead to various sanctions and consequences, including disqualification; denial of compensation; disgorgement of fees already received from the client; malpractice lawsuits; disciplinary proceedings and even criminal liability.
If someone is convicted of bankruptcy fraud, they face a maximum penalty of 5 years in prison and a potential fine of up to $250,000, which is non-dischargeable. Also, if there are other crimes such as perjury, each act of perjury also has a maximum of 5 years in prison and a $250,000 non-dischargeable fine.
U.S. Trustee Program (Department of Justice) - this program oversees the administration of bankruptcy cases and private bankruptcy trustees and enforces the bankruptcy laws pursuant to 28 U.S.C. § 586 and 11 U.S.C. §101 et seq.
All creditors have the right to be heard with regard to liquidation of the debtor's nonexempt assets in Chapter 7 and with regard to the debtor's repayment plan under Chapter 13. All creditors are also entitled to challenge the debtor's right to a discharge. Not all creditors are treated equally in a bankruptcy case.
The debtor will no longer be personally liable for the debts and therefore has no legal obligation to pay discharged debt. In most cases, creditors are also unable to take collection action against the debtor if the debt has been discharged. Some common dischargeable debts include credit card debt and medical bills.
Federal courts have exclusive jurisdiction over bankruptcy cases. The primary purposes of the federal bankruptcy laws are to give a debtor, either a person or a business, a “fresh start” by relieving the debtor of most debts, and to give the debtor the opportunity to repay creditors in an orderly manner.
For instance, Bankruptcy Rule 2004 authorizes the bankruptcy trustee to examine: the acts, conduct, property, liabilities or financial condition of the debtor. any matter which may affect the administration of the bankruptcy estate, or. any matter which may affect the debtor's right to a discharge.
According to Article 1167, the remedies available to creditor if the debtor fails to comply with his obligation to do, the creditor has the right (a) to have the obligation performed by himself, or by another, unless personal considerations are involved, at the debtor's expense and (b) to recover damages.
Creditor's rights can refer to many different aspects of creditor-debtor and creditor-creditor relations including a creditor's rights to place a lien on a debtor's property, garnish a debtor's wages, set aside a fraudulent conveyance, and contact the debtor and relatives.
Creditor Rights is a generic terms for the tool-box of rights that any creditor has to collect outstanding debt from the debtors that owe the creditor money. This Creditors Rights tool box is available whether in a bankruptcy or non-bankruptcy context.