Bankruptcy And Debts

Consolidation Debt Mortgage Gov. James E. McGreevey has put himself in the middle of the fight over a new federal transportation spending bill. It may not be a bad place to be.

Chapter 13 bankruptcy allows an individual to pay off his debt over time. The process starts when the individual files a petition with the bankruptcy court. This petition includes a complete list of all the individual's debts and assets. Additionally, the petition must include a payment plan that describes how the debt will be paid off over the next three to five years.

Consolidation Debt Help Lawmakers and administration officials in the nation's capital are feeling unusually conflicted. The current $218 billion federal road and mass transit spending program runs out Sept. 30. Everyone wants the new program to have lots more money for repaving highways, buying new buses and trains and doing other voter-friendly work. But no one agrees on how to pay the bill.

Chapter 7 Bankruptcy involves the selling off (or "liquidation") of a business' property to pay off debts. The bankruptcy process starts when the business files a petition with the bankruptcy court. The petition must list all of the business' property, debts, and recent financial history. The court will then appoint a trustee who will sell off some of the business' property to help pay the business' debts. Some debts will be discharged by the trustee, meaning that the debts will not have to be paid. Other debts are not dischargeable including recent taxes, debts in prior bankruptcy, and penalties payable to the government.

Consolidation Credit Debt The argument has stalled progress on a new law and put usually cozy political allies on sharply different sides.

People file for bankruptcy because they're in debt. The more debt there is, the more bankruptcies there are. Well, duh! It really is that simple. When compared to the level of borrowing, the rate of bankruptcy has remained fairly steady. In 1977, 74 bankruptcies were filed for every $100 million of consumer debt. In 1997, 73 bankruptcies were filed for every $100 million of consumer debt. Bankruptcy isn't the cause of debt but rather is the result. And it isn't the disease but rather is one of the cures. Restricting access to bankruptcy court won't solve the problem of debt any more than closing the hospitals will cure a plague.

Bill Consolidation Debt One group, headed by Don Young, the conservative Alaska Republican who chairs the House Transportation and Infrastructure Committee, wants to increase the 18.4-cent-a-gallon federal gas tax and to index it to inflation. That would produce $375 billion over six years, a big jump from the current law.

Bankruptcy is a court process that allows an individual or business to get relief from their debts. The ultimate goal of bankruptcy is to give the individual or business a fresh financial start while being fair to creditors. How Can a Business File for Bankruptcy Chapter 7 and Chapter 11. Once bankruptcy proceedings are started (whether through Chapter 7 or Chapter 11), creditors cannot attempt to collect debt from the business until the bankruptcy process has ended.

Consolidation Debt Quote But President Bush, House Majority Leader Tom DeLay (R-Texas) and other anti-tax conservatives are dead set against any tax hike, much less letting the tax rise along with the cost of living. Indexing could put the federal gas tax at 30 cents or more by 2009. They and many other politicians, not without reason, fear a backlash on Election Day.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary among states. Note that personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. And unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.

Consolidation Debt Lead Bush has proposed a six- year, $248 billion program that would get by on the current tax, plus some twiddling with a levy on gasohol and tapping the national highway trust fund's surplus.

Consolidation Debt Non Profit McGreevey would split the difference. He would add $60 billion to the president's plan by creating a nonprofit corporation to issue federal tax credit bonds. With some financial jiggering and an extra $1 billion each year from the trust fund's surplus, the states would get more money and the national treasury would be reimbursed for lost tax revenue.

Consolidation Debt Loan Online The governor's plan is better than some alternatives being considered by Congress that would increase the national debt or shortchange mass transit.

Consolidation Debt Home Loan McGreevey did not come up with this on his own. It is a refinement of a proposal from the American Association of State Highway and Transportation Officials, a group with which New Jersey Transportation Commissioner Jack Lettiere is heavily involved. The extra money would give New Jersey almost $1.5 billion more than President Bush's plan -- about $8.2 billion over six years vs. about $6.8 billion.

Christian Consolidation Debt That extra money is important. New Jersey's road network and mass transit system need about $10.8 billion over the next three years just to keep what we have running in decent shape. The state expects it will get only about $7.6 billion, including state contributions, and that gap means lots of bumpy roads and crowded trains.

Consolidation Debt Information No one in Congress has signed on to support the tax- credit bond idea. The Congressional Budget Office reported two months ago that issuing bonds would cost more than using the federal appropriation process.

Agency Consolidation Debt The McGreevey plan also is not ideal public policy. Distasteful as the idea is to politicians and voters, the best way to fund road and mass transit improvements is through a gas tax hike. Any other strategy produces less money at higher cost.

Consolidation Debt Solution Unfortunately, Young aside, most members of Congress do not want to face that uncomfortable truth. So a plan that brings in extra cash at seemingly no cost to the treasury or gasoline buyers may start to look appealing.

California Consolidation Debt Congress is likely to pass an extension of the current transportation spending program, maybe for six months. There will be pressure to come up with a more generous program. Some variation of McGreevey's proposal may make it into law because anti-tax fervor blocks a more responsible approach.

Consolidation Debt Loan Uk That may be unavoidable in Washington. Trenton should not follow suit when our state transportation trust fund starts to run dry next year. Our view still is that the governor and Legislature should carefully consider a modest hike in the state's 10.5-cent gas tax, as well as indexing it to inflation.

Consolidation Debt Equity Home Star-Ledger - 8/20/2003

Topic: Transportation

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