March 30, 2023 - The Chicago Journal

What is Chapter 13 bankruptcy?

Leah Cooper on March 30, 2023

If you have debt problems and are looking for a way to resolve them, then Chapter 13 bankruptcy might be an option to consider. In this article, we will tell you more about Chapter 13 bankruptcy and what it can do to help you overcome your financial problems.

Understanding Chapter 13 bankruptcy

Chapter 13 refers to a bankruptcy case in the United States when debtors reorganize their finances under the court’s supervision and consent. As soon as the bankruptcy case is filed, collections are put on hold. That means that debt collectors and creditors are required to stop calling, visiting, or texting you.

This repayment plan offers various forms of relief to individuals and married couples. Everyone who works and earns enough money to pay off their debts may apply for Chapter 13, even if they are self-employed or running an unincorporated business.

The difference between Chapter 13 and Chapter 7 bankruptcy

Bankruptcy can be valuable not only for people but for businesses struggling with overwhelming debt. However, it is essential to understand the differences between Chapter 7 and Chapter 13 bankruptcy and choose the one that best suits your needs and objectives in terms of money.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is intended for people with excessive debts and insufficient income. Unsecured debts such as credit cards and medical expenses can be discharged under this sort of bankruptcy without repayment. The filer’s assets are evaluated, and those not covered by bankruptcy exemptions may be sold to repay some creditors. However, most people keep their assets since they are covered by exemptions. Chapter 7 bankruptcy is ideal for individuals with little or no property who wish to discharge their debts quickly.

On the other hand, Chapter 13 bankruptcy, or reorganization bankruptcy, is designed for individuals with a stable income who cannot manage their debts. This type of bankruptcy allows filers to reorganize their debts and repay a portion of them over time while protecting their assets from seizure.

This chapter is ideal for individuals with a stable income who wish to keep their assets and repay their debts over time. Filers are required to provide a repayment plan outlining their three- to five-year payback schedule for creditors. They must pay their debts in full or at least the value of the non-exempt property. Moreover, non-dischargeable debts, such as tax obligations and child support, cannot be eliminated but can be reorganized.

In conclusion, the primary difference between Chapter 7 and Chapter 13 bankruptcy is the debt relief method. Chapter 7 offers a quick and complete discharge of unsecured debts, while Chapter 13 offers a reorganization of debts with repayment over three to five years. Filers must choose the type of bankruptcy that best meets their financial needs and goals.

How to file for Chapter 13 bankruptcy?

There are a couple of steps to follow when filing for Chapter 13 bankruptcy.

– Credit counseling: You must complete pre-filing bankruptcy counseling through a nonprofit credit counseling agency. Your counselor may help you draft a repayment plan.

– Get an attorney: Hire a qualified bankruptcy attorney to guide you through the complex Chapter 13 process.

– Fill out paperwork: You and your attorney must gather information on your debts, income, property, and monthly expenses to complete the required forms.

– Submit bankruptcy petition: Submitting the forms completes the process and triggers an “automatic stay” that prohibits most attempts to collect on your debts.

– Submit payment plan: Within 14 days of filing, you must submit a proposed payment plan and start making payments within 30 days, even if it hasn’t been approved yet.

– Meet with creditors: The trustee will host a meeting between 21 and 50 days after filing, during which creditors can raise any issues they have.

– Confirmation hearing: The trustee and the creditors who wish to attend should meet in court no later than 45 days after the meeting of creditors to confirm the payment plan.

Do state laws change the procedure significantly?

The truth is that state laws can impact the bankruptcy process, including eligibility requirements, exemptions, and the specific procedures and timelines involved. It’s important to consult with a qualified bankruptcy attorney familiar with your state’s laws and regulations to ensure you understand how they may impact your case.

Burnout: looking into the workplace phenomenon

Edward Anderson on March 30, 2023

Burnout – Shortly before the 2020 pandemic, studies and media reports showed that burnout was occurring quite frequently among working people.

Work with the highest liability of burnout includes the health care, education and service sectors.

It got even more attention when New Zealand Prime Minister Jacinda Ardern announced her resignation earlier in 2023.

“I know what the job takes, and I know that I no longer have enough in the tank to do it justice.”

Psychologist Christina Masrach, who has studied work-related stress for decades, found a term that pops up frequently in her investigation.

“She’s talking about an empty tank,” Maslach pointed out.

Maslach said the pandemic shows how crucial work is to a healthy and productive society, even when people are exasperated.

Modern understanding

Some researchers argue that burnout is a modern phenomenon caused by our busy culture, while others argue that it is just another repetition of a long series of fatigue problems. tired. .

They mentioned the ancient Greek concept of Asedia, which the fifth-century monk and theologian John Cassian described as physical lethargy and deprivation.

In the 1970s, Herbert Freudenberger, a psychological consultant for volunteers working with drug addicts, coined the term “burnout”.

Freudenberger used this phrase to describe the following characteristics of volunteers:

A gradual loss of motivation
Emotional depletion
Reduced commitment

Christina Maslach noticed similar trends in interviews with social workers in California, which inspired her to develop a burnout detector, the Maslach Burnout Inventory.

They discovered three of the traits with Susan Jackson, a PhD student at the time.

Feelings of chronic fatigue, cynicism and inefficiency, or low personal achievement.

According to Renzo Bianchi, an occupational psychologist at the Norwegian University of Science and Technology, Maslach’s scale has elevated burnout to a legitimate research topic.

“Before [the Maslach Burnout Inventory], burnout was pop psychology,” said Bianchi.

Definition

Since its conception, Maslach’s inventory has been the most extensively used instrument for investigating burnout, although its description of the disorder has been disputed.

Organizational psychologists Wilmar Schaufeli and Dirk Enzmann wrote The Burnout Companion to Study and Practice: A Critical Analysis in 1998.

They maintained that boxing burnout, described as a combination of tiredness, cynicism, and inefficiency, was “arbitrary.”

“What would have happened if other items had been included?” they proposed.

“Most likely, other dimensions would have appeared.”

The three causes, according to Evangelia Demerouti of Eindhoven University of Technology, are loosely defined.

Other factors such as health concerns and familial responsibilities can all contribute to fatigue.

Disagreements have arisen between opposing viewpoints, one of which is how to use Maslachi’s inventory.

There was no reference to a cutoff to define when people went from not burnt out to burnt out.

It was instead intended to help academics identify similarities in a work environment or profession.

Maslach had limited influence on how others used the method.

A modified version of the Maslach Burnout Inventory was used in 86% of the medical burnout studies presented in JAMA 2018, some of which reduced the number of statements or reduced the assessment of burnout.

Researchers used an unvalidated version of the scale that included cutoff value, but there was little agreement on its definition.

The JAMA researchers found 142 types of fatigue.

Researchers identified 11 different assessment instruments that did not use inventory variants in the study group.

Concerns have led educators to rethink how burnout is defined and measured.

“We don’t [have] a good conceptualization of diagnosis of burnout,” said Demerouti.

“We need to start from scratch.”

Agreements

According to Bianchi and his team in 2021, experts agree that fatigue is an important aspect.

Research over the past two decades has focused on the idea that burnout causes cognitive changes such as memory loss and difficulty concentrating.

This problem can lead to forgetfulness, says Charlie Renaud of the University of Rennes

People’s problems can escalate into personal situations and make entertainment difficult.

Renaud argued that as more information becomes available, questions about cognitive changes are added to writing scientific assessments.

Connection to depression

Depression is often attributed to individuals, but theories appear to be conflicting as to which social factors cause burnout.

The Researchers questioned whether the latter would arise as a diagnosis by itself.

Research suggests that the concepts are not mutually exclusive.

Prolonged stress at work can lead to depression, and mood burnout.

Furthermore, according to Bianchi and colleagues, fatigue is related to depression, not cynicism or incompetence.

If the symptoms are covered by fatigue, then fatigue and sadness appear to be a more durable combination than Maslach’s inventory.

“The real problem is that we want to believe that burnout is not a depressive condition [or] as severe as a depressive condition,” said Bianchi, but he said it isn’t true.

Should it be diagnosed?

The diagnosis is controversial because not everyone thinks it’s a good idea.

“Burnout was never, ever thought of as a clinical diagnosis,” Maslach explained.

However, Bianchi and his team disagreed with this statement.

They developed a proprietary scale, the Occupational Depression Inventory, to measure nine core symptoms associated with work-related major depression, which including cognitive decline and increased risk of suicide death.

If burnout is related to depression, it may need to be addressed. Bianchi says.

“Hopefully, the interventions, the treatments, the forms of support that exist for depressed people can be applied for occupational depression,” he said.

According to Kirsi Aloha of the Finnish Institute of Occupational Health, this treatment does not lessen the work-related stress that causes the condition.

“[Imagine] the person is on sick leave, for example, for a few weeks and recuperates and rests,” she offered.

“And he comes back to the exactly same situation where the demands are too high and no support and whatever. Then he or she starts burning out again.”

Burnout is not current included in the Diagnostic and Statistical Manual of Mental Disorders

Maslak’s Bern theory was supported when the World Health Organization classified the syndrome in its 2019 International Classification of Diseases.

However, the World Health Organization says it is a tool and not a health problem.

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Banks across Europe witness stock drops, banking crisis looming over their heads

Claire Peterson on March 30, 2023

Banks – On Friday, the European financial crisis took an unexpected twist, with bank stocks tumbling.

Investors had a role, acting on their lingering anxieties about previous bank crises spreading into the broader industry.

Stocks

The European Stoxx Europe 600 Banks index tracks the top 42 European and British banks.

It finished 3.8% lower.

Despite this, the index has dropped roughly 18% from its peak in late February.

Similarly, the London FTSE 100 index sank 1.3%.

Deutsche Bank (DB) shares fell 14.5% before rebounding to close down 8.5%.

UBS and Credit Suisse’s shares declined 3.6% and 5.2%, respectively.

Deutsche Bank

Deutsche Bank’s costs for protecting itself against a potential debt default have grown in recent days.

According to S&P Market Intelligence data, the bank’s five-year CDS hit 203 basis points on Thursday, the highest level since early 2019.

On Friday, German Chancellor Olaf Scholz declared that there was no need to be concerned about Deutsche Bank.

“It’s a very profitable bank,” said Scholz.

EU leaders issued a joint statement in Brussels applauding the European banking sector for its stability and proper capital and liquidity levels.

Michael Hewson, chief market analyst at CMC Markets, backed up the news, saying:

“The rising price of insuring CDS senior debt is weighing on Deutsche Bank, as well as other European banks, on concerns over the impact of rising rates on the wider economy and banks’ balance sheets.”

Interest rate hike

The European Central Bank kept its commitment to hike interest rates by half a percentage point this week.

Their decision was based on their conviction that inflation posed a greater economic threat than the present global financial crisis.

After data showing an unexpected increase in inflation in February, the Bank of England raised its main interest rate by a quarter percentage point on Thursday.

Market jitters, according to Susannah Streeter, Hargreaves Lansdown’s head of money and markets, have also contributed.

“Worries about contagion are again rearing up even though more deposits appear to have been flowing into the German lender since the banking scare erupted,” she said.

“It is thought to have capital reserves well in excess of regulatory requirements.”

Analysts believe Deutsche Bank’s announcement on Friday that it will repay one of its bonds five years ahead of schedule jolted markets.

Such a move is typically interpreted by investors as proof that the company is financially strong and capable of repaying creditors on schedule.

US crisis effect

While investors were initially optimistic, the bankruptcies of Silicon Valley Bank and Signature Bank in the United States, as well as Credit Suisse’s emergency takeover, harmed their confidence.

Investors may have construed the comments as Deutsche Bank’s anxiety about the banking industry’s future.

Some investors, according to Capital Economics deputy chief markets economist Jonas Goltermann, are concerned that banks are overcompensating.

Furthermore, he argued that the bank’s actions looked to have backfired.

According to a person close to the situation, Deutsche Bank’s decision to repay the bond ahead of time was planned rather than a reaction to recent market events.

Under the rules enacted in the aftermath of the 2008 financial crisis, the bond would have lost its eligibility as a sort of regulatory capital later on.

The bank, according to the source, replaced the bond in February by releasing a matching type of bond.

Similarly, Commerzbank (CRZBF) in Germany and Société Générale in France incurred considerable losses, with losses of 5.5% and 5.9%, respectively, at the end of the quarter.

Swiss banks remain wary

UBS, Switzerland’s largest bank, paid 3 billion Swiss francs ($3.25 billion) for its Swiss rival in an emergency takeover arranged by the Swiss government this week.

The move helped to calm markets following the collapses of Silicon Valley Bank and Signature Bank earlier this month.

Yet, investors were concerned on Friday.

UBS and Credit Suisse failed following a Bloomberg report that the US Department of Justice was investigating their employees’ connections to help Russian oligarchs dodge Western sanctions.

The DOJ sent subpoenas to the individuals prior to UBS’s acquisition of Credit Suisse, according to the story.

Meanwhile, employees of major US banks are being examined.

According to CMC Markets’ Hewson, the DOJ probe into UBS contributed to widespread price weakening across European banks.

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