Question

Discussion Topic One:

What is bankruptcy? What are the different types of bankruptcy? Do you think bankruptcy protection is a good thing or should it be eliminated? Explain.

Discussion Topic Two:

The chapter discusses foreclosure. Do quick internet research and find a case that deals with foreclosure. Provide a brief summary of the facts of the case, and provide the court's analysis. Be sure to provide a reference.

Answer 1

1

What Is Bankruptcy?

Bankruptcy is a legal process, an option for an individual, family, or corporation who finds themselves unable to pay off their debts.

The bankruptcy courts will go over your debts and liabilities and will track your assets as well. Some of your assets may be used as repayment. These debts can be reduced or done away with altogether.

The ideal goal behind this system is to give people a second chance and a fresh start. Debt hangs over your head, and interest means it just continues to grow. It makes it harder to pay off, increases the number of predatory phone calls and voicemails you hear and can bring unmanageable stress into your daily life. Should the bankruptcy process work as it's intended, you may have a chance at life without this.

Bankruptcy Types

With bankruptcy being such a complicated issue that can affect so many different parties, there is much more to it than just "declaring bankruptcy." Are you an individual or a business filing for bankruptcy, and how do your income and assets impact the plan for repaying debts? The U.S. has an entire court system dedicated entirely to bankruptcy cases, so it's not afraid to get very intricate with the details.

There are several different types of bankruptcy. The most common ones, though, are likely Chapter 7, Chapter 11, and Chapter 13 bankruptcy.

Bankruptcy Protection Good or Bad?

You’ll hear a lot of people conclusively say: “bankruptcy is bad.” But why? Why is the general consensus that filing for bankruptcy is a bad thing? While it is true that filing for bankruptcy is evidence of trouble with personal finances, that’s not the whole story.

A large part of the reason why people say bankruptcy is bad is because they don’t understand the process. No two bankruptcy cases are alike and consumers are forced into bankruptcy for a whole host of different reasons, most of which are beyond their control.

Bankruptcy is not inherently bad or good, but it is an important protection for honest consumers who find themselves in big trouble with debt. A small minority of filers try to abuse the bankruptcy process to hide assets and cheat creditors. These stories are dwarfed by the stories of honest people who have suffered through tough times and finally turned to bankruptcy because they can’t see a way out. Even the Bible calls for debt forgiveness every 8 years.

2.

Smith v. U.S. Bank N.A. et al

Plaintiff:	Eddie Lee Smith, Sr.
Defendant:	Select Portfolio Servicing, Inc. (SPS) and U.S. Bank N.A.
Case Number:	0:2020cv60543
Filed:	March 12, 2020
Court:	US District Court for the Southern District of Florida
Presiding Judge:	Rodolfo A Ruiz
Nature of Suit:	Real Property: Foreclosure
Cause of Action:	28:1332
Jury Demanded By:	None