Abstract This paper studies the evolution of the legal treatment of insolvent debtors in Britain and America. It focuses on the factors that sustained the practice of imprisoning insolvent debtors and relies principally on Britain, with American practices used as points of contrast. The paper argues that the debtor's prison was a primarily economic institution, necessary for a well-functioning petty credit market, as opposed to a primarily sociological institution, necessary to deal with insolvent individuals in an arbitrary "proper" manner. Section I reviews existing literature and outlines the "sociology of debt" argument, which is the primary lens through which scholars now understand debtor's prisons, to which this paper stands in contrast. It also summarizes the relevant economic literature on bankruptcy. Section II provides historical background on the evolution of the institution of debtor's prisons. Section III establishes the necessity of the debtor's prison for the credibility of debt contracts. Section IV concludes and discusses the importance of the "economic necessity" hypothesis in explaining the abolition of the debtor's prison.
Paper Outline
Introduction
Literature Review
Historical Background
Credibility and Commitment: Early Petty Borrowing
Conclusion
Appendix
Bibliography
From the Paper "Imprisonment for debt is viewed as so bizarrely cruel and draconian that contemporary opponents of Republican bankruptcy reform legislation have tarred it as akin to restoring debtor's prison. Internet bloggers, too, have invoked the image of the debtor's prisons to impugn the Bush Administration's Social Security plan as lacking compassion for the poor (see Appendix A). The view of the debtor's prison as a barbaric relic from the past is not confined merely to popular expression, but may also be found in scholarship. For example, Margaret Hunt, professor of history at Amherst College concludes a book review stating:
'One also comes away from [The Character of Credit] with a palpable sense of relief that debtors' prisons are no more. Let us hope a certain Department of Justice does not get hold of this book, or someone might decide to bring them back.'"
Abstract This paper explores the relationship of debtor and creditor relationships through examining the various repercussions from a single scenario, depending on whether the debtor or the creditor is the party to file bankruptcy.
Abstract This paper explains how the role of the banks in an economy can be analyzed by using the concept of financial intermediation between debtors and creditors in the economy. It also points out that they can be defined according to the traditional functions of financing, collection of resources and administration of payment methods.
From the Paper "In order to emphasize the role of the banks, it is necessary to accurately place them in the midst of the financial system, as its main component. From a financial perspective, there are, at a general macroeconomic level, two categories of participants with complementary preoccupations: the ones who are in need of financial resources and who wish to procure them and the ones with financing capabilities who desire to efficiently place their capital. The function of the financial system is to represent the interface between agent with surplus and with deficit of resources."
Abstract This paper uses the ideas from the book "Getting to Yes" and applies them to a case in which a debtor owes money to a creditor company that it cannot pay,
From the Paper "Amy Siegel is credit manager for Star Computer Components, a manufacturer of printed circuit boards. One of Amy's collectors told Amy that she has been unable to reach anyone at Odyssey Electronics Inc. to discuss a past due balance. Amy reviewed the credit file and found the following information about Odyssey: The debtor company is four years old. It employs eighteen people. A credit report shows Amy's company is one of Odyssey's two largest creditors."
Abstract The paper discusses the ratio of chapter seven to chapter eleven bankruptcy filings, timeframe requirements and the common reasons why individuals file for bankruptcy. The paper also looks at debts that can not be discharged through chapter seven filings and if payment modification is available for debtors that cannot pay under their current plans.
Outline:
The Ratio of Chapter Seven to Chapter Eleven Filings for Business
Typical Chapter Eleven Time Span for Filing, Confirmation, and Successful Completion
The Most Common Reasons that Force Individuals to File for Bankruptcy
Individual Debts That May Not be Discharged by Filing for a Chapter Eleven Bankruptcy
Can a Chapter Thirteen Payment Plan be Modified if the Debtor Cannot Make Payments
From the Paper "Based on the statistics released in the December 3, 2004 News Release from the Administrative Office of the U.S. Courts and as stated in Chapter 11, Title 11, of the United States Code (Wikipedia, 2003), the number of business bankruptcy filings for the twelve month period ending September 30, 2003 are 21,008 chapter 7 filings, and 9,185 chapter 11 filings. Therefore, based on this information, the ratio of chapter seven to chapter eleven business filings is approximately 2.287:1. This deduces that there are nearly two and one-third times more chapter 7 filings compared to chapter eleven filings for businesses alone."
Abstract This paper discusses the process of conviction through history, from martial and colonial law to the modern court system. It goes on to discuss methods of punishment from branding and flogging, through export to colonies, to modern prisons. It looks at various prison systems and philosophies from rotting squalor, to hard labor and chain gangs to the modern healing and rehabilitation. The paper also looks at the severity of punishments meted out over history for various crimes and discusses debtor's prisons. It is well laid out in chronological historical periods.
From the paper:
?Crime is an issue of paramount social concern, one that directly and indirectly affects each and every member of society. The costs of crime are not merely financial; there are also emotional costs such as when a criminal murders an individual's family member or close friend or when an offender is incarcerated, depriving his or her family of emotional and/or financial support. Public concern has increased over specific aspects of the crime problem, namely juvenile crime, prison reform, the role of television in producing violence, and urban gangs. This paper analyzes and examines prisons and how they have evolved over the centuries to match the attitudes and ideas of society. In Part II, the history surrounding prisons is analyzed. Finally, this paper concludes with recommendations for ways to improve how the criminal justice system handles punishment.?
A description of West German attempts to open political and economic relations with Eastern Europe brought about by the Soviet invasion of Czechoslovakia.
1,240 words (approx. 5 pages), 2 sources, 2001, $ 42.95
Abstract This paper deals with the Soviet invasion of Czechoslovakia. The author examines the historical relationship between West Germany and the former Soviet Union from the Cold War period. The paper discusses the opening of economic ties between West Germany and the rest of Western Europe.
From the paper:
"The war in Vietnam greatly increased US government spending on weapons and other supplies, the demand for which American industry could not fully meet. To fill the rest of the orders, the US turned to the other Western industrialized countries, in many cases West Germany and Japan. This increased spending helped jumpstart the economies of these countries, moving both West Germany and Japan from debtor to creditor nations as they achieved large trade surpluses. As it grew more powerful economically, West Germany took a more independent path politically."
Tags: cold, invasion, oestpolitik, states, union, united, war, west, industrialization, money, finance, reform, control
Evolution of global economy and financial institutions and their successes and failures in distributing income between creditor and debtor nations and between social classes in Latin America.
3,375 words (approx. 13.5 pages), 12 sources, 1999, $ 119.95
From the Paper "This research will examine the successes and failures of the expansion of the global economy at income distribution between creditor and debtor nations and between social classes in Latin America. The origins of the "global economy" will be discussed and its eventual transformation from a purely liberal perspective to today's neoliberal perspective will be charted. Finally, the current impact of the neoliberal global economy on income distribution in Latin America will be assessed.
The expansion of the global economy--especially as guided by the neoliberal perspectives of the creditor countries and the International Monetary Fund--has had a dramatic, albeit less than successful, impact on economic growth in Latin American countries. The philosophy of creditor countries to promote economic growth in Latin America and elsewhere in the Third World..."
Examines provisions and applications of this state's mechanics and materialmen's lien statute related to construction projects, competing interests, priority and court decisions.
2,700 words (approx. 10.8 pages), 5 sources, 1999, $ 95.95
Abstract It is often true that in a bankruptcy case, creditors battle over control of the property of the debtor's estate. Creditors in certain industries have been the beneficiaries of state law in different states that have created special treatment for certain classes of creditors
From the Paper "INTRODUCTION
It is often true that in a bankruptcy case, creditors battle over control of the property of the debtor's estate. Creditors in certain industries have been the beneficiaries of state law in different states that have created special treatment for certain classes of creditors. Industries with the strongest lobbies are usually the beneficiaries of such special protection, and the construction industry lobby has been particularly diligent in securing such benefits for suppliers of goods and services on construction projects for the improvement of real property. The traditional form of protection is the mechanics of materialmen liens granted under state law, but the procedure for the creation and perfection of mechanics and materialmen liens varies from state to state and can be very technical. Each state ..."
The problem of international debt financing reached the crisis level in the late 1980s and the first two years of this young decade; however, efforts by the United States government and several international financial entities have proved effective in lessening the threat posed to international financial markets. The cooperation of major American banking institutions was essential for the success of the international strategies, since these American banks held much of the outstanding debt particularly debt issued to Latin American nations. This paper will first investigate the international debt problem, including examination of its effect on banks in the United States, then the focus will shift to analysis of the measures enacted to begin the process of solving the crisis ..."
Abstract This paper discusses bankruptcy fraud and how the bankruptcy system, an arm of the United States District Court, is a critical component of the United States government because of the impact bankruptcy filings have on national and local economies. The first part highlights five of the main issues concerning bankruptcy fraud such as the conflict between the purposes of the bankruptcy system and the reality of the bankruptcy process and the issue of corporate responsibility and bankruptcy fraud. The second part of the paper reviews two cases involving bankruptcy fraud and it concludes with solutions for eliminating and/or reducing it.
From the Paper "Fourth, there is the issue of corporations and individuals who prey on debtors who are contemplating filing bankruptcy. Bankruptcy foreclosure scams target individuals whose home mortgages are in trouble. Scam operators operate over the Internet and in local publications, distribute flyers, target specific ethnic or religious groups, or contact individuals whose homes are listed in the foreclosure notices. These scam operators may promise to take care of an individual's problems with their mortgage lender or to obtain re-financing for the individual. Particularly bold scam operators ask individuals to hand over their property deed to the operator, and then make payments to the operator in order to stay in the home."
Abstract This paper discusses how the right of combination and set-off, as developed under English law offer a number of safeguards to banks and creditors in general. It looks at how these rights were expanded under the principles that they were necessary to effect substantial justice and that they would stimulate economic growth and trade. It suggests that the judicial application of these rights has tended to unfairly favor banks at the expense of the individual customer, which may initially stimulate growth by encouraging banks to provide loans, but in the long term may serve to deteriorate trade, particularly at the international level. It demonstrates how customers in other countries, particularly civil law countries, experience much more risk when they do business with an English bank and hence may be better off refraining from bringing their enterprises there, or at any rate must be extremely careful in drawing up contracts to insist on settlement of disputes in other jurisdictions.
From the Paper "Basically, English set-off allows a creditor to use any money it owes an insolvent debtor to pay off the debtor's liabilities that have become due to the creditor. Thus, when liquidation commences, only the party that had the larger claim is still owed the net balance. Liquidation legally occurs when the company passes a resolution to voluntarily wind up or is judicially wound up. Effectively, eligible creditors (those that meet the mutuality requirement) are positioned alongside secured creditors to the extent of their debt to the insolvent party. Simultaneously, they continue to be placed within the pool of unsecured creditors who (as a result of the speeding of the recovery process for those creditors eligible for set-off, recover a diminished amount themselves) receive dividends on the portion of debt still owed to them by the insolvent party."
Abstract This paper explains that the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005 is considered to be the most extensive review of the Bankruptcy Code ever since its inception in 1978. The author points out that, although several provisions, such as general structure of liquidation under chapter 7 and provisions for reorganization under chapter 11 remain as they are, the 2005 Act is considered to have significant impact on the rights and interests of both creditors and debtors in consumer and business bankruptcy cases, which is reviewed in this paper chapter by chapter of the new code. The paper relates that the primary objective of this legislation, which was widely patronized by both banks and the credit card industry, is to discourage bankruptcy filings and to turn some debts not subject to a bankruptcy discharge.
From the Paper "Such reformation in terms of major modifications in the corporate bankruptcy law is expected to lead to a rush to the courts by loosing companies to find out easier treatment. The new bankruptcy law embodying the new creditor protections in the law will make the bankruptcy reorganizations more stringent and also more costly for companies in search of shelter under Chapter 11. The formulators of the Law have made it stringent in reply to the concerns that management has been too fast to use bankruptcy like another financial device to affect creditors and shareholders. The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects."
Abstract The paper discusses how examining the emergence of chattel slavery in the Caribbean and Iberian America between the sixteenth and nineteenth centuries, reveals the indigenous origins of African slavery and the sinister participation in this inhuman system of European governments and their colonies in the Western Hemisphere. The paper describes how slavery emerged and developed in the New World because of the existence of black slave markets in Africa. The paper explains that by the sixteenth century, African slave traders had been supplying slaves to the Islamic world for centuries and had taken advantage of the African tribal custom of selling captives of war debtors and enemies from other tribes.
Abstract This paper explains that Supa Toys has identified objectives to develop and expand the contracting of operational activities, alliances, joint ventures, outsourcing and sourcing opportunities. The author points out that one of the key strategic plans, upon which Supa focused, is its operational activities, which coordinates and prioritizes the major elements of the actual daily activities of the company's physical plant. The paper stresses that any business of any size needs to have an effective accounting system, which is especially vital to Supa Toys because of the firm's intense effort to grow, improve and lead its industry. The paper includes charts.
Table of Contents:
Introduction
Opportunities, Trends and Objectives
Strategic Opportunities
The Importance of an Accounting System
Financial Trends
Trends in Light of Organizational Strategic Objectives
Measures of Efficiency and Profitability
Net Operating Profit per Person
Percentage of Net Operating Profit to Owner's Investment or Equity
Percentage of Operating Profit to Total Assets
Stock
Sales
Gross Profit
Debtors Measure of Financial Stability
Short Term Financial Stability
Long Term Financial Stability
General Observations about the Financial Reports for Supa Toys
Pricing Remains Stable
Financial Management Training
Planning Objectives
Process Time-frames
Resource Allocation
Timing of Supa's Financial Planning Objectives
Closing Thoughts
From the Paper "Over the past several years the product pricing for Supa Toys has remained the same, and has not increased in spite of the revenue increases that are being sought as part of the overall strategic plan. The unchanged price also can represent a significant source of additional revenue. While some people view price increases as a last ditch effort when their business cannot be grown or customer base is even dwindling, for a successful company like Supa, the prospect of increasing pricing, of course in a discreet and professional way while the firm is doing well can provide a way to increase revenues without actually having to sell more individual units or to undertake business with disreputable customers who will cause more harm to the organization than good."
Tags: objectives, pricing, factories, measurements, systems
