Archive for home repossession
Feb
04
The Relationship Between Law Of Attraction And Money
Posted by: | CommentsAs any other skill people have, possessing the skill of your desire is no different from playing the piano or flipping pancakes in the air. How good you are at it depends on how efficient you have become at performing it.
And, although some of us are better at certain skills that doesn’t mean the rest of us, with practice, can’t improve or even surpass the talent expressed by another. Those people who are efficient in attracting money or whatever else they desire have trained their mind to focus on their desires.
They have learned it so well that they often times don’t even realize how they do it. Abundance comes to them naturally. They wouldn’t blink an eye if someone suggested they don’t deserve something, it isn’t part of their reality.
Understanding The Law Of Attraction
We create our own reality. We attract those things in our life like money, relationships, employment and whatever else we focus on. It is not as simple as stating an affirmation over and over, no affirmation is going to work if your thoughts or feelings are negative.
When we focus on having less then we create that same feeling for ourselves. When we tell ourselves I hate my job we will never notice the aspects of our employment that might be satisfying.
Basically, just wanting something isn’t going to bring that to us when we continue to obsess on the not having of that something. We will just keep feeling that we do not have it and keep blocking our true desires.
When it comes to money we tend to think of the abundance in terms of how much money we have in our bank accounts or winning the lottery and both are fruitless. Once again, it is focusing on not having or not having enough.
And some of these things you could do with the small amount of money you presently have. Yet too many cling to their meager savings out of fear that if some of it is used there might be trouble ahead, then you’ll really be in bad shape.
For example, a daughter’s mom owns a car that is in need of repair and would cost $300. The daughter has $800 in her savings and is afraid if she gives her mother the money her own car might have problems, or one of her children might need something for sports, or there could be an accident with her old washer and she will need the money.
This lady’s true focus is on not enough and her Law of Attraction is negative. She will and probably always has been the same magnet most of her life, for fear over powers her desires.
The Law of Attraction works regardless if you are working at it or not. The problem is that we can unknowingly be attracting things that we dont want. In order to attract the things we do want is to focus on the positives and live the same way.
Once you start to visualize what you really want your thoughts and feelings start working as though your dreams exist. Soon they will because you have lived, desired, thought, acted and manifested them to become alive.
Sell and Rent Back
Jan
31
Credit Repair-bankruptcy
Posted by: | CommentsWhat is Bankruptcy?
Bankruptcy is one of the more effective ways to deal with debts you cannot afford to pay. Once you declare that you are bankrupt, all assests in your possession will be used to pay your outstanding debts. After a period of one year, all your remaining debts will be written off and you can start anew. You can either file your own petition of bankruptcy or your creditors can do it for you. Either way, the effects are the same. Most of the Bankruptcy rules in effect have changed since April of 2004 when the Enterprise Act was approved.
How to go Bankrupt
Filing your bankruptcy petition
A petition for bankruptcy is readily available in your local County Court. Processing the petition may cost about £310 deposit and £150 court fee. These fees should be paid along with the submission of your petition. If you are on low income or on certain benefits, you can be awarded exemption from paying those fees.
Only the larger County Courts accept bankruptcy petitions. Although you are obtaining the form from your local County Court, you will need to take a trip to the High Court to submit the form. If, for example, you reside in central London, you will have to go to the High Court to submit your petition. The District Judge will usually call for a hearing that same day to decide whether it is appropriate to issue the order or not.
Once the order is made, you will get in touch with the Official Receiver who deals with your bankruptcy and report to him all your personal details. The information that you will be asked about usually pertains to your finances including your incomes, expenses, assets, Insurance policies, and Pension policy details.
A creditor making you bankrupt
Your creditor can file a petition for your bankruptcy if you owe him £750 or more, which you are not able to pay dutifully. If you have several creditors, they may join forces to file for your bankruptcy although this is rarely done. You can also be made bankrupt if your Individual Voluntary Agreement (IVA) fails.
Before a petition of bankruptcy is filed in court, your creditor will first send you a “Statutory Demand”, which will ask you to pay your debt either through installments or through the property you own.
The Statutory Demand is usually used by creditors to force its debtors pay the amount they owe immediately without any intention of filing for bankruptcy. This is because no amount is required for filing a Statutory Demand while filing for Bankruptcy charges fees upfront.
Within twenty-one days, the creditor and debtor must reach an agreement otherwise, a bankruptcy order may be filed in court. If your debt is less than £750 or there is an ongoing dispute about the money you owed, you can apply to have the Statutory Demand set aside.
ADVICE - Statutory Demands
Once you receive a Statutory Demand, your next move should be to check if you can have it set aside.
Do I have Assets?
Once you are declared bankrupt, the Official Receiver or appointed trustee may rule out to sell all your assets to pay for your debt.
INFORMATION - Please know that certain items or goods are not counted as assets. These items are basically your domestic needs such as clothing, bedding, furniture, and household equipment. Items that are necessary for you to carry over your profession or vocation are also not treated as available assets and in effect, cannot be taken away from you. Your antiques or expensive appliances can be given up for auction as well as your car so long as it is not needed in your profession. In some cases, a car that is necessary for employment is sold and is substituted by a cheaper one.
All your assets that have been discharged from your possession must be sold as soon as possible. If any of them remains after you have been released from bankruptcy, they will still no longer belong to you. The Official Receiver will continue to take possession of them until all of them have been sold.
INFORMATION - Assets
The only asset or valuable that is treated differently is your home. For details, see below.
Bankuptcy and Hire Purchase Agreements
A clause in the hire purchase agreement states that you will have to return the item once you are declared bankrupt. This means that your contract with the company will be terminated altogether. In some cases, however, you can be allowed to continue ownership by making payments dutifully even while you are declared bankrupt.
Pensions
If you went bankrupt before May 29, 2000, your personal pension could be taken in as an asset. This means that you will receive no lump sum or weekly payments in the future. This rule has been changed, however. Therefore, if you went bankrupt after May 29, 2000, your pension, may it be personal or occupational, should be left untouched. Some debtors used their pensions to stop creditors from taking away their savings. In this case, the pension fund may be lost to the Official Receiver.
Property and your home
A property or home is an asset that is treated differently. If it is yours alone, it can be forfeited to be sold regardless if it has any equity in it or none. If you are living in it with your spouse and your children, the sale will be delayed for a year to give them sufficient time to find somewhere else to live. Once you go bankrupt, your interest in your property is naturally transferred to the Official Receiver. If you co-own it or in some form of joint ownership, the Official Receiver should only take away your equity share. This is also known as your “Beneficial Interest”. In certain circumstances, you can be considered to have a beneficial interest even when you are not named in the mortgage. In certain circumstances as well, your co-owners can make an offer to the Official Receiver to buy out your equity share so the house will remain intact.
REMEMBER - Beneficial Interest
If your co-owners have any intention of buying out your equity share of the property, they must do it quickly. Otherwise, the Official Receiver may take it into his hands in selling your home altogether. Those who want to buy your beneficial interest must get in touch with your Official Receiver and transact with him directly. The Insolvency Service charges very low for the transfer of your beneficial interest so this should not really be a hard thing to manage. You also need to reach an agreement with your Official Receiver on the actual value of your beneficial interest before this kind of transaction is made. If there is negative equity in the property, the value of your beneficial interest may go from a minimal amount of £1.00.
INFORMATION - Low cost conveyancing scheme
To avail of details about low cost conveyancing scheme, there is a leaflet entitled “What will happen to my home?” which are available in The Insolvency Service. You may also call National Debtline on telephone numbers 0808 808 4000 for more information.
If you fail to have someone buy out your beneficial interest in your home or property, your Official Receiver will have no other choice but to sell it. If your home has very little or no equity in it, the court will have to postpone the sale up to three years and see if your property has risen in value. Make an agreement with your Official Receiver about your beneficial interest to keep this scenario from happening.
If you still have mortgage or secured loan on your property, your monthly payments should be maintained to stop your lender from taking possession of your property.
New rules from April 2004
Before April 2004, the Official Receiver is allowed to come back at any time in the future to take your property and sell it. This has now changed. If you went bankrupt after April 2004, the Official Receiver is given only three years to deal with your property. If he is not able to sell it within the period, he will have to give your property back under your ownership. To counteract this law, the Official Receiver can either sell your home immediately, apply for an order for sale, or apply for a charge. If your Official Receiver applies for a charge, he will be given 12 years to ask for an order for sale.
Will I have to pay anything from my wages?
You may be asked to pay a specific amount from your earnings if the Official Receiver has proven that you have money to spare. He will think out your income and your expenses (including your mortgage, your rent, your household bills, and any other form of expenditures) and study whether you will have allowances for a monthly due.
Income Payments Orders & Income Payments Agreements
The Enterprise Act states that Bankruptcy orders expires after a period of one year. However, you may be asked to enter a binding agreement that will have you pay monthly fees from your earnings for three years under an income payments agreement. If your circumstances change at any period that the agreement is in effect, you can send a notice to your Official Receiver so your case will be looked at again. If you fail to pay your obligations, however, your Official Receiver will have the option to go to court and file for an income payments order against you. This way, the court will rule, based on the Official Receiver’s recommendations, how much you will need to pay for a period of three years.
The Effects of Bankruptcy
Once you went bankrupt, you will need to close your bank account or your building society account. You may open another one for as long as it has been agreed by your Official Receiver and that the bank or building society allows you to. That is why it is best to open an account when you are already discharged from bankruptcy.
INFORMATION - Instant access type accounts
Instant access type accounts may allow you work through a cash card. If you are interested to obtain more information regarding this, you get in touch with the National Debtline on 0808 808 4000.
Going bankrupt can affect your life greatly. In fact, the people that you are going to transact with will usually be more careful not to make you pay any amount that involves credits. If you live with a partner, you may transfer all your payable accounts under his name to make it easier for you and for the companies that you deal with — gas, electricity, and telephone companies.
Your employment status may also be at risk by going bankrupt. To be on the safe side, you must check your employment contract for any clause regarding bankruptcy. If you really want to be sure, you can ask the staff welfare officer or the trade union. If you belong in a professional body that prohibits bankruptcy then you must be prepared for your contract to be aborted. Any job that requires you to handle money could be at risk. Those who work in financial industry could even lose their consumer credit licenses once they go bankrupt.
Even after you are discharged from bankruptcy, you will still find it hard to obtain credits. Your credibility in handling financial obligations is obviously destroyed. This is because your record of bankruptcy will remain with credit reference agencies for a period of six years. Your bankruptcy status will also be kept detailed in the Insolvency Register for three months after you have been discharged from it. “The London Gazette” may also publish about your bankruptcy in its classified section or even in your local paper.
Bankruptcy offences
While you are on bankruptcy status, it is illegal to:
- Take a credit of more than £500 without your creditor knowing about your status.
- Use another business name to deceive people about your financial state.
- Act as a director of a company without permission.
- Act as an insolvency practitioner.
Bankruptcy restriction orders
Bankruptcy status should be lifted out exactly one year after it has been declared. That is in agreement with the Enterprise Act. Your Official Receiver, however, may petition for a Bankruptcy Restriction Order which can last between two and fifteen years, appearing on a public register, nevertheless. The grounds that may call for this order is your misbehavior and dishonesty in any way. If your Official Receiver feels that you have displayed “unfit” conduct, he can ask the court to issue the Bankruptcy Restriction Order. Breaking the order would mean a criminal offence.
Qualifications of an unfit conduct include:
- Deceiving the Official Receiver about your assets and businesses two years before you went bankrupt.
- Gambling.
- Making business transactions at a time when you know that you cannot handle debts.
- Taking out credits you cannot pay.
- Giving away your assets to avoid them from being taken away by the Official Receiver.
- Prioritizing some creditors over the others.
- Failure to cooperate with the Official Receiver.
- Concealing your assets and properties from the Official Receiver.
Being issued a Bankruptcy Restriction Order means that you cannot avail of credit that is more than £500 without letting your lender know about your status. You also cannot hold any significant position like an MP, a local councilor, a director of a company, or an insolvency practitioner until after the order has been lifted.
WARNING
The Bankruptcy Restriction Order does not stop your Official Receiver to take criminal actions against any of your offences. If you sell goods that you have on hire purchase agreement or you fill out false information on your loan application, your actions will be taken into account to the attention of the court, no less.
Discharge from Bankruptcy
The Enterprise Act of 2002 ruled out for discharge from bankruptcy after a period of one year. If you cooperate well enough with your Official Receiver and act to the best of your behavior, this can be moved earlier. A discharge from bankruptcy would mean that all your remaining debts even after your properties and assets have been sold will be written off so you can make a fresh start.
If, for example, you went bankrupt on April 1, 2004, you will be discharged from bankruptcy on April 1, 2005 unless it is about to end earlier.
WARNING
The rules on discharge from bankruptcy only applies to first timers. If you have had previous petitions for bankruptcy or your automatic discharge has been suspended, this may take long than you expected. Not keeping an amicable relationship with your Official Receiver could also lengthen your suffering.
If you want a certificate of your discharge, you may request the court to issue you one but this will cost £60.00 on your purse. Also, if you want to apply to have your bankruptcy annulled, you may well do so for as long as all your financial obligations have been paid off.
Alternatives to Bankruptcy
Individual Voluntary Arrangements
An Individual Voluntary Arrangement or IVA is a formal agreement between the debtor and the County Court made to avoid a petition for bankruptcy. You can either set an amount to pay your creditors monthly and dutifully or pay them in full. To file for an IVA, you will need the help of an insolvency practitioner who will act as the middle man. It is usually costly to hire an insolvency practitioner. Asking them for an initial meeting where you can seek advice whether filing an IVA is appropriate in your case or not is best suited. This way, you can be sure that every cent you pay for is worth it. Names of local insolvency practitioners can be obtained through the court offices or the Official Receivers.
The insolvency practitioner prepares the proposal of payment scheme that is according to your capabilities. If your creditors agree to the terms stated in your IVA, the arrangement is put in place. If you fail to comply with the terms in your IVA for the period that it was in effect either your insolvency practitioner or your creditors could file a bankruptcy petition against you.
WARNING
Be wary about companies offering to put you on the line with an insolvency practitioner as this requires a fee. You can very well deal directly with an insolvency practioner without having to go through a third party.
FACTSHEET - Individual Voluntary Arrangements
If you need more information regarding Individual Voluntary Arrangements, you may get in touch with the National Debtline on 0808 808 4000.
Fast Track Individual Voluntary Arrangements (FTVA)
This is another alternative that you could sort through. The FTVA is used to have your existing bankruptcy annulled by way of submitting an installment plan to your creditors and hope against hope that they agree with it. This arrangement is much appealing to creditors because they could be paid more under FTVA than what they would under bankruptcy.
Instead of the insolvency practitioner, the Official Receiver works directly to put an FTVA in place. The FTVA is much cheaper than the IVA to arrange because the set fees and costs are lower. If you fail to adhere to the FTVA while it is in effect, your Official Receiver will have no other way than to make you go bankrupt again.
WARNING - Fast Track Individual Voluntary Arrangements
Weighing up the ways an FTVA could work for or against your advantage is important before tackling this road. If you choose to have an organization act on your behalf instead of the Official Receiver, you may want to consider a free debt management plan. This way, you can devise affordable repayment schedule for your unsecured debts.
COUNTY COURT FEES
DO I HAVE TO PAY A FEE FOR AN APPLICATION IN THE COUNTY COURT?
Every transaction with the County Court usually requires court fees. If you feel that you are incapacitated to pay the fees by way of benefits, you can submit an EX160 or the “Application for a fee exemption or remission” together with your main application. If the court agrees to your petition for exemption then you will not have to pay certain fees. If, however, you have paid a fee when you should have been exempted, you can file a petition for the court to waive or refund your paid amount. You can do this within six months after the payment has been made.
EXEMPTIONS
The court awards exemptions from paying fees to those deserving individuals who are on benefits. If you are on income support or income based job seekers’ allowance (JSA), you can automatically be awarded exemption. This is also the case with those who are on working tax credits. If you are on child tax credit or you have received the disability or severe disability element in your working tax, you can be eligible for exemption. This is considering your gross annual income taken into account for working tax credit is not more than £14,600.
To qualify for both, you must present substantial documents that will prove that you are on the above mentioned benefits. If your case does not fall under both, you can ask for your paid fee to be waived under the remission rule.
REMISSIONS
If the court fees will cause you “undue financial hardship”, you are qualified to file for remission, upon which your paid fee will be refunded. This can happen under exceptional circumstances that should prove you are not capable of shedding extra cash for your petitions. To apply for remission, you must present a list of your personal budget, your incomes and outgoings. You must present proofs that your current financial situation makes it impossible for you to pay the fee without having to go though “undue financial hardship.” Upon studying your petition, the court may refund part or all of your paid fee depending on what it feels you can afford.
Real Estate Professionals
Jan
18
Unsecured Loans With Ccj’s: a Boon in Blue Patches of Life
Posted by: | CommentsAn introduction:
In life misfortune can arrive without any knock at your door and you find yourself unprepared to combat with it. Having a CCJ issued against you is such a critical condition. CCJ meaning county court judgment is issued by your county court in order to solve civil disputes regarding breaching of any contract concerning goods or property, personal injuries, debt repayment and many others. Once a CCJ is issued against you; your credit gets sullied for next six years in the society and you are discriminated in every field. The only way to save your credit is to repay the fixed debt within 30 days from the date of issue of CCJ’s. If you have some property than you can easily find a lender who can lend you money by keeping your property as security. But in case where you don’t have any property or if is kept as collateral in case you possess any, then you can be in deep trouble as no lender wants to risk his money on you. In such crucial situation unsecured loans with CCJ’s comes to help you out by providing money without keeping any security. The loans amount issued can be used for repayment of the fixed debt well within time and you can save your credit score.
Unsecured loans with CCJ’s require certain prerequisites to be fulfilled which are stated below:
a) You must be citizen of U.K.
b) You must be living at your present address since 3 months.
c) You must be above 18 years.
d) You must have a regular job since 6 months.
e) You must have a current bank account.
The loan amount approved varies from £1000 to £25,000 with a repayment span of 6 months to 10 years. As the loan is approved despite of your bad credit and lack of security; the interest rate is high. To check the interest rate, the debt must be repaid timely.
Rent Back
Jan
06
Becoming The Right Person to Succeed at Your Stay At Home Job
Posted by: | CommentsWhen people talk about finding a spouse, they often talk about finding the right person to marry. Although there is some truth to this commonly stated phrase, there is a much better philosophy that people should follow. Instead of trying to find the right person to marry, they should concentrate more on becoming the right person for someone else.
This method of thinking can be applied to people trying to start a successful business. Many people spend an over exhausting amount of time on searching for an easy type of business to start. They exhaust all of their time, energy, and resources in trying to find the right business for them. This is an important part of creating a new business, but more importantly is the type of person that is starting the business.
Finding the right business is not as important as being the right person for any time of business. There are certain qualities and characteristics that a potential business owner must possess in order to be successful. The following characteristics are a few suggestions of things that future entrepreneurs should aspire to achieve:
Determination
Before anything else, a person must have an ever-increasing determination to start and maintain a business. A strong, enduring desire is what drives a person to be successful. That’s what determines whether or not a business will continue to succeed or fail. If the person’s determination continues to grow, so will the business’ potential for profit continue to grow.
Diligence
The life of a new business owner can be extremely stressful and often bring many different disappointments. Many people are quick to quit the business even before it begins to take flight. With perseverance, a person is able to get through the hard times of starting a business and can see the light at the end of the tunnel.
Positive Attitude
When starting a business, a person must try to be optimistic at all times. A sense of optimism enlightens a person’s mind and brings a spirit of positive thinking to the business. This proper attitude and mental state of mind can also bring about a business’ success.
One great example of all of these qualities comes from Thomas Edison. It is said that he failed one thousand times before he was able to successfully invent the light bulb. When asked about this, he said that he didn’t fail, but rather found one thousand ways not to create a light bulb.
Thomas Edison showed a great sense of desire because he continued to seek success at inventing the light bulb. His perseverance can clearly be seen from the one thousand times he tried to create his unique invention. And finally, his optimistic statement shows the proper attitude that allowed Edison to achieve success.
When thinking about becoming a successful business owner, people should follow the example of Thomas Edison and concentrate on becoming the right person for the business rather than finding an easy business. This type of philosophy will harvest much more success and happiness for all those people hoping to become successful entrepreneurs.
Rent Back Fast
Dec
24
Mabo v Queensland (no 2) Hca 23; (1992) 175 Clr 1 (3 June 1992)
Posted by: | CommentsMabo v Queensland (No 2) HCA 23; (1992) 175 CLR 1 (3 June 1992)
By : Kingsley OkaforIgwe
Introduction
The rights of indigenous inhabitants to occupy, use, and or to possess land that they, prior, and in the aftermath of annexation or settlement, occupation or being conquered by the European powers, is referred to as, native title. It has been suggested that land that does not have an outright paramount ruler, or lands that have no recognizable laws or legal system, that are not consonant with the European legal system, or property law, may not be recognized as a sovereign nation. It was agreed, among the European nations in the 18th Century, that foreign lands, which fall within this category, would be deemed the terra nullius, in other words uninhabited lands. Although Australia has always been inhabited, at least, at the time of European contact, it was wrongly held that Australia was a terra nullius. On this basis, the colony of New South Wales was settled, even though, European settlers’ encountered indigenous inhabitants at the time of the initial settlement.
One of the central impediments to the recognition of, and the granting of native title to land, lies in the very fact that most nations whose interests were being protected and furthered most by not recognizing native title to land would be unwilling to freely relinquish that which they enjoy. This was ‘absolute title to the land’, in the right of the Crown, as in the former colonies of England.
Australia is a good example of such colonies that appear to be unwilling to recognize that indigenous people have rights to both the private, and the communal ownership of land. However, the decision in Mabo v Queensland pronounced otherwise. In the Mabo case, the High Court found that indigenous people, at least the Meriam people of the Murray Islands, against the whole of the world, are entitled to both private and communal ownership to the land. Even though the court found that radical title is still vested in the Crown, the Court also confirmed that native people are entitled to use, possess, occupy, and therefore enjoy the land in the virtue of inheritance.
This essay is in two parts. First, the exploration of the culture of the Murray Islanders, the legal arguments covered in the case, the history of the proceedings, and the decision reached in the Mabo case. Second, the analysis of the approaches taken by Justice Deane and Justice Dawson who played integral roles amongst the decision making of the High Court Justices who adjudicated in Mabo v Queensland.
History of the Murray Islands:
1 Murray Islands are part of Torres Strait Islands. Natives of the Murray Islands who occupied the Islands for many generations are refer to as the Meriam people. In, or about the end of the 18th century, contact occurred for the first time, between the Murray Islanders and the Europeans. The Meriam people have inhabited the Islands for generations before any European contact was made. The lifestyle of the Meriam people is a communal one. Social interaction is an essential feature of the Meriam peoples’ life. Land was used predominantly for the cultivation of garden produce as well as for ceremonial and ritual purposes.
Meriam people place great emphasis on prowess to work the land due to the value attached to farm produce. 2 The produce gained by use of the land for farming, whilst used on daily basis for sustenance, was equally important for ceremonies, such as marriages and adoption. Gardening and hunting involve a great deal of work and therefore is an important and integral part of the Meriam people’s culture, in the sense that it provides a vital plank for social interaction as well as being a medium for the exchange of goods, services and ideas. Therefore he or she who has the right technique or expertise to work the land and to produce abundant harvests gains considerable status and respect from his or her peers. 3 Traditionally the Island men would prepare the land and the women would cultivate the soil. 4 Men often stood watch while women worked, to repel any possible attack from unwelcome and unsolicited suitors from other Islands. 5 In the less fertile areas the Islanders commonly fished, collected shellfish and gathered native plants. The hunting of sea animals such as dugong and turtles was a significant part of their existence.
European contact:
6 It was recorded that in 1834, there were two British castaways who were rescued in the Island of Mer, and resided in that Island until 2 years later. The discovery of pearl shell in 1861 marked the turning point in the chain of events that followed soon after. As a consequence of this discovery, the 7 first pearling station was established on Warrior Island in 1868. In 1871, the 8 London Missionary Society came to the Murray Islands and in 1877 relocated its Torres Strait mission to Mer.
It followed that the Murray Islands were subsequently annexed to the Colony of Queensland. 9 The Governor in Council created indigenous reserves on the Islands, and a system of indirect rule was established on the Island. This successfully brought the Islands into the Crown’s dominion.
Annexation of the Murray Islands.
10 On October 10, 1878 the ruling English Monarch “passed Letters Patent” calling for the “rectification of the Maritime Boundary of the Colony of Queensland”. 11 Authority derived from the Letters Patent allowed the annexation of the Murray Islands. 12 Empowered by this authority, the Governor of Queensland successfully annexed the Murray Islands into the Crown dominion, and therefore declared that the Islands were part of the Colony of Queensland and consequently, liable to the laws of Queensland. 13 As a result of the annexation, Queensland Legislature on 21 July 1879 passed a corresponding legislation (the Queensland Coast Islands Act) rubber-stamping the concluded annexation. It was reported that 14 in September of 1879 Captain Pennefather visited the Islands for the purpose of announcing to them that the Islands were now annexed and that they, (the inhabitants) would be subject to British laws.
It appears that the Queensland Government in 1882 decided to keep the Murray Islands for its traditional inhabitants. 15 At this time the London Missionary Service was authorized to lease 2 acres on Mer by the Queensland Government to enable them to be responsible for dispute resolution and general law and order on the islands. It was noted that in the immediate aftermath of the reserve creation, the Queensland Government deported some non-indigenous people from the Islands who were considered as trespassers by the Meriam people.
15 It appears that the Queensland Government authority in Thursday Island believed the application of Queensland law in Murray to be difficult, as the Acting Government Resident in Thursday Island expressed his fears and doubts about the workability of the current Queensland Laws in the Murray Islands in his official communication with the Queensland Chief Secretary in 1886. He stated that every land in the Islands had a rightful owner. 16 He also stated, “every grove or single tree of any value has its proper and legitimate hereditary owner…to disturb these rights, great care would have to be exercised and the natives recompensed for any loss that they might suffer through deprivation”.
Mabo v Queensland (1)
17 In 1992, Eddie Mabo, a member of the Meriam community (the native inhabitants of the Murray Islands), together with four other Meriam plaintiffs, commenced a legal challenge against the State of Queensland in the High Court. The Plaintiffs sought to establish ownership of the Islands by the Meriam people, by virtue of inheritance, and therefore urged that the Court acknowledge their rights to occupy, use, and therefore to enjoy the Islands. The case was twofold. First, upon the commencement of the case in the High Court, Queensland Parliament enacted legislation- Coast Islands Declaratory Act 1985(Q.) purporting to dispose of, and therefore to invalidate any native title, interests, or whatsoever that the plaintiffs may have had in those Islands. Mr. Mabo and his fellow plaintiffs challenged the legislation in the High Court. 18 The High Court ruled against the Queensland Government by citing that the legislation is invalid because of inconsistency with the Racial Discrimination Act 1975(Cth).
19 The Racial Discrimination Act was enacted in 1975 in pursuant of Australian Government obligation under the International Convention on the Elimination of All Forms of Racial Discrimination. The High Court held that the Queensland legislation discriminated against the people of the Murray Islands. In light of this ruling, the Queensland Act was incompatible with the Racial Discrimination Act and therefore, in effect, invalidated. Under the Australian Constitution, Commonwealth laws may override any State Law that is inconsistent with the laws of the Commonwealth. The Queensland retrospective legislation intended to depose native interests to land, and thus failed in its purpose due to this inconsistency pursuant to the Racial Discrimination Act.
Mabo (2)
The Queensland Supreme Court conducted a series of hearings in Brisbane, the Murray Islands and Thursday Island. The hearings, more or less were concerned with fact-finding. The hearings went on for 67 days, and upon conclusion of this undertaking the case was returned to the High Court for legal argument.
In Mabo v Queensland, the Defendant, in right of the Crown claimed that both radical title and beneficial ownership of the Murray Islands was vested in the Crown from the time the Islands were annexed to Queensland, in 1879. 20 The Court held that the Meriam people held beneficial ownership of the Islands, and that such title survived annexation with relevance to customary laws. 21 This Court ruling confirmed the existence of native title and, that the Meriam people possess the right to own property. The Court also recognized that the indigenous interests on the Murray Islands was communal and, and therefore protected by the Racial Discrimination Act, and that, in view of the fact that it was protected by an Act of Parliament, was recognized under common law. As a consequence of this ruling, the proposition that Australia was a terra nullius (uninhabited land) at the time of British settlement in 1788 was seriously defeated.
22 The High Court confirmed that the Crown obtained radical title to the land when Britain claimed Australia, but did not gain beneficial ownership of the land, and therefore, the right of the aboriginal inhabitants was preserved.
However, this right can still be extinguished through consistent legislation. The benchmark for such extinguishments is validity, plainness and compatibility of such legislation to pre-existing Commonwealth laws or constitution, as stated by the High Court.
What then would happen to persons who hold native title to land should the government in exercise of its duty, validly extinguish native title?
Fiduciary.
23 The case also raised issues whether government, states, territories, or federal are duty bound to act in the interest of Aboriginal people when lands that is subject to native title is in issue. 24 In Guerin v The Queen (1984), the Supreme Court of Canada held that the government of Canada owned a fiduciary duty to native people, to take appropriate steps that would safeguard indigenous interests in dealings with land where native title may be extinguished. 25 The Court in Guerin asserted that aborigines’ title to native land is a legal right that existed before assertion of sovereignty over the Colonies by Britain. 26 The Court therefore, stated that the fiduciary obligation is unavoidable as a result of government power to extinguish native titles, or to alienate land through validly legislated scheme. 27 These factors, the Court said, placed fairness obligation on the Crown, or its agents when dealing with land that involve native claim. Fundamental fairness and equity is therefore the basis for fiduciary obligation. It seeks to ensure that the Indigenous people or those that have indigenous interests to land are not shortchanged in their dealing with the Governments and, or in dealings with third parties. In Mabo, Toohey J., held the view that if the Crown has the power to extinguish, and, or to impair native title to the land, the Crown therefore is duty bound to ensure that equity prevails in any event.
Dawson J. disagrees with Dean J and other Justices.
Deane J.
It was believed that the land in the Australian colonies was ownerless and therefore available for acquisition by England who settled the territory. In so doing, the Crown was assumed to have acquired radical title to the land. 28 This theory of Crown’s radical (also knows as absolute title) ownership of land was developed after the Norman Conquest where it was believed that the King acquired all the land in the Kingdom. Deane J., was of the view that although, upon colonial settlement in Australia, the radical title was vested in the Crown, the only purpose for taking such procedure was to enable the establishment of English property law in a newly acquired Colony. 29 Deane J., relied on the decisions of the Privy Council, in Re Southern Rhodesia, see also Amodu Tijani v. Secretary, Southern Nigeria (1921) to argue that propitiatory interests which existed under native law or customs before conquest or settlement was to be respected in the absence of any express expropriation or extinguishments through legislated scheme.
30 Therefore, Deane J., asserted that, as the factual evidence shows, there is no law in Queensland that expressly extinguished native interests to the land, and that the ‘Imperial Letters Patent and Order in Council of 6 June 1859 (303)’ which carved out the Colony of Queensland from New South Wales, did nothing to extinguish native title. From the time of the establishment of the Colony of New South Wales in 1788, till the present day, no legislation has been enacted explicitly to extinguish native interests in the land nor has this occurred in Queensland. 31 The provisions of the Crown Lands Alienation Act 1876 (Q.) did not extinguish native title, rather it served the purpose of preserving native interests in the land, native customs and native laws. This preservation was strengthened by the creation of Aboriginal reserves by the Queensland Government, Deane J., denotes.
32 The doctrine of domestic law in Queensland and that of New South Wales, as well as the common law of England, provides for the preservation and protection of pre-existing native interests in the land at the time of the annexation of the Murray Islands to the Colony of Queensland. Deane J., justified these statements by reference to the applicable section of the Land Act 1962(Q). 33 Section 5, Land Act 1962(Q). states that land reserved for use by the public, is not Crown land. For the purpose of this Act, land preserved for public purposes includes Aboriginal reserves. 34 In 1912, the Murray Islands were permanently reserved by the Governor in Council for the use of the native inhabitants of the State.
35 Deane J., therefore was satisfied that although radical title to the land was vested in the Crown, that entitlement however, does not confer beneficial ownership of the land to the Crown, but to the indigenous inhabitants with reference to native laws and customs, and were protected under common law.
8
Dawson J.
On the other hand, Dawson J., towed a different line in contrast to Deane’s view. 36 Dawson was satisfied that by the virtue of Crown assertion of sovereignty over the Colony, and the creation of reserves that this excluded native title and resulted in extinguishments of any usufructuary rights that may have existed before annexation.
37 Moreover, he suggested that native title does not exist in the absence of any recognizable system of land ownership that is consonant with the European model. The argument that there were no recognizable laws in the Colony prior to the British settlement in Australia appears the opposite of the conclusion reached by Justice Burton of the New South Wales Supreme Court in 1836. Justice Burton “concluded that prior to settlement the Aborigines were entitled to be regarded as a free and independent people”. 38
Could it be that the “free and independent” native people lost independence upon assertion of dominion by the Crown?
39 The creation of reserves, Dawson argues, was to further Crown’s dominion over the land, and therefore would not be interpreted as a concession of native title to land, or as a recognition that such title exits.
40 In other words it does not follow from the decision of other Justices that the Crown, upon assertion of sovereignty does not gain beneficial ownership of the land, but radical title. In fact, it can be strongly argued that Dawson is of the opinion that the Crown did acquire beneficial ownership as well as radical title over the land under English law that it brought with it. 41 Beneficial ownership of the land, Dawson J., said, could be ascertained through the deeds of the Crown, for example, assertion of sovereignty over the Colony. This on its own recognized no native title, Dawson declared. 42 Dawson argued that lands reserved for the use of the native inhabitants was only a good will, a permissive occupancy by the Crown that allowed the indigenous population to use the land. 43 He argued that from the onset, the Crown through legislated schemes that appear to be inconsistent with any native or communal rights to land controlled the native reserves.
9
It goes to show that Dawson considered that native title to land does not subsist at all, and that the native inhabitants of the land have no right to remain on the land in virtue of inheritance if the Crown elects to alienate the land for other purposes. Dawson stated, as opposed to the consideration of Deane, that the reserves created for the use of the indigenous people should not be misinterpreted as an intention of the Crown to preserve native rights that do not subsist.
44 The fact that the Murray Islanders were allowed to remain on the land by the Crown, similar to the permission given by the Crown to other indigenous people all over the Colony to remain on the land, removes any ambiguity that these reservations may have created. 45 The permission, Dawson argues, was consistent as a matter of the Crown’s assertion of uninterrupted dominion over the land, but was incompatible with any claim that native title was preserved through the creation of reserves. Dawson conflicted with the Racial Discrimination Act 1975 (Cth) in which the plaintiffs based some of their arguments that they have been discriminated against, on the basis of their ethnic origin. 45 He considered the Act to have no application in this matter given that s.334 (4) of the Land Act 1962(Q). provides that the Governor in Council may annul any Crown land that has been set-aside for public purpose. In view of the fact that Aborigines reserves were set-aside for the aforementioned purpose, Dawson J., argues, the plaintiffs’ claim of racial discrimination is baseless.
46 Dawson J., was not satisfied by the argument of the plaintiffs that their human rights or fundamental freedoms to own or inherit property would be rescinded or damaged by the Crown’s action. In light of this line of argument, Dawson J., argued that any proprietary right that the plaintiffs may have had in land had been extinguished by the Crown upon annexation.
47 Dawson J., therefore refused to grant any of the declarations sought by the plaintiffs for the reasons that he expressed in the present case, more importantly, that the plaintiffs, and those that lived before them since annexation, lost any interest that they might have had on the land, but were permitted to remain on the land not on basis that native title were recognized by the Crown, but because of the reserves created by the Crown in pursuant to legislation.
10
Conclusion
In conclusion, the judgment in Mabo v Queensland has set an important turning point in Australian jurisprudence, in the sense that the idea that the Crown possess beneficial title to the land has been seriously wounded. More importantly, the principle that Australia was a terra nullius prior to 1788 settlement by Britain has been voided by the Mabo case. The view of the High Court that native title to land survived annexation by the Crown would indicate that independence of Australian indigenous people might have survived annexation. As stated by Justice Burton in 1836, Aborigines were free and independent people prior to the acquisition of sovereignty by the Crown, therefore their entitlement to land that they inhabited prior to the Crown claim of dominion should not be abrogated by a mere annexation of the territories.
The fact that there were indigenous inhabitants on the Colony prior to settlement and subsequent annexation is good enough to satisfy any doubts or argument, and would demonstrate that those who inhabit the land first are entitled against the whole of the world to possess, use, occupy and enjoy the land. Although the High Court ruled against the Queensland Coast Islands Declaratory Act 1985 with reference to inconsistency with the Racial Discrimination Act, the same High Court confirmed that native title could still be extinguished through consistent, and unambiguous legislation. It would appear that native title is therefore liable to extinguishments. In view of this risk of extinguishments, every effort should be made to protect the rights of those whose interests to their land may be extinguished by the Crown through legislation. As the Court confirmed the sovereignty of the Crown, it is imperative that the government receive with a sense of responsibility, fiduciary obligation to ensure that in any dealing, where native title may be threatened, that the interest of the titleholders are at best, protected.
Dawson J., who dissented with the opinion of the other Justices in the present case, was of the view that native title did not survive annexation. He argued that any interests to the land that the indigenous population may had had was destroyed by the Crown’s assertion of sovereignty. It followed that he did not consider as inalienable, the right to own or to inherit property, as he argued that those rights even if they previously existed, as the plaintiffs claimed, was lost at the moment of annexation of the Murray Islands. These rights are fundamental human rights, as well as legal rights and were confirmed as inalienable by the other Justices of the High Court who adjudicated along side Dawson J., in the present case.
Bibliography:
Brennan, Gerard, ‘ Aboriginal Land Claims- an Australian Perspective’ (1995)
Charles Sturt University, ‘Indigenous Australian Case Study: Torres Strait Mer (Murray Island) and Eddie ‘Koiki’ Mabo’
Crommelin, Michael, ‘ Mabo: The Decision and the Debate’
Delgamuukw v Her Majesty the Queen in Right of the Province of British Columbia and the Attorney –General of Canada (1987)
Koppenol G J, ‘ The Evolution of Native Title in The High Court of Australia’ (2003)
Mabo v Queensland (1992) 107 ALR 1
Moore, Penelope’ Land, Rights, Law: Issues of Native Title’ (1998)
Reynolds, Henry,’ After Mabo, What About Aboriginal Sovereignty?’(1996) Australian
Humanities Review
Rush, Stuart, ‘Aboriginal Title and The State’s of Fiduciary Obligations’ (1999)
Saunders, Cheryl ‘ Blurring Distinctions., A review of Henry Reynolds’s Aboriginal Sovereignty’ (1996) Australian Humanities Review
Sell and Rent Back
Dec
22
Understanding The Law. Defacto, Divorce And Family Law
Posted by: | CommentsThe following Q&A’s have been provided to help you better understand Family Law.
Q. I recently divorced my husband who has left me with the four children and he has suggested that as we have no assets he will give me half of his superannuation. What should I do as I am unemployed and on a single mother’s supporting pension and he does not pay child support?
A. Unfortunately you are being very badly treated as your entitlements would include spousal maintenance, child support (see the child support agency) and access to at least 50% of his superannuation. You need to seek urgent legal assistance and perhaps legal aid is where you should look first.
Q. I have been divorced from my former husband for over seven years and although I am in employment he has been on the dole throughout and has a history of violence. Recently he approached me and suggested that as he was now in a stable relationship he would like to have contact with our son. What should I do?
A. In all cases involving children it always gets back to what is in the best interests of the child. Should your ex-husband have a history of violence involving both yourself and the child, custody would not be an issue and supervised contact is probably what would be allowed. This always gets back to working out a program which will be acceptable to both parties provided that the child will not suffer as a result.
Q. I am currently involved in a de-facto relationship and my partner has excluded me from the home by locking me out. What can I do as she has become personally violent towards me and we need to sell the house so we can go our separate ways?
A. In regard to the property you should ask your solicitor to write to your ex-partner indicating that you wish to have the property sold and if they do not comply then you can always approach the Equity Division of the Supreme Court for relief.
Q. Do you think it advisable for me to enter into a financial agreement with my intended defacto partner as I have all the assets and she has very little?
A. Yes. There are a number of reasons for doing this but principally you need to ensure you are fully protected given your age and if the relationship breaks down then you have a level of protection which would not otherwise be available to you.
Q. I have been involved in a same-sex relationship with another person for over 20 years and I have retained a firm of solicitors who seem reluctant to push my case as strongly as I would like. The other side is making mincemeat out of my representative who does not seem to know what to do to counter their attacks. What do I do in the circumstances?
A. If you are unhappy with the type of representation you are receiving and the service is falling well short of your expectations then you need to consider whether or not it is in your best interests to move to another lawyer. Same-sex defacto relationships and marriages which fail all require representatives who possess skills appropriate to best represent their client’s interests. If counselling, mediation and conciliation has not worked for you such that you find you are under constant attack and need to take a more forceful approach then perhaps it is time for you to consider changing lawyers to one who can better represent your interests as a 5-10% swing in entitlements from one party to another may mean that legal fees become irrelevant in this context as you will need to fully protect your interests in these circumstances.
Q. I have just broken up with my defacto partner and everything was in her name, although I did a lot of building work to improve the property and paid the mortgage instalments whilst we were together. Am I entitled to be recompensed for my contribution to the relationship?
A. Yes. Effectively where two people are in a defacto relationship and one makes all the financial contributions to it whilst the other takes the benefits even though they may own the principal asset the court will look to the nature and extent of the financial contributions you have made and the assets will split based on this after accounts have been taken.
Q. My boyfriend has a couple of children to an ex-girlfriend who has packed up, moved on and not told anyone where she has gone. Is there anything my boyfriend can do?
A. Yes. He can approach the court for orders which means that anybody who has any knowledge of those children’s whereabouts has to deliver up information so that their current location can be discovered so the court can make orders for their return.
Q. I am a grandmother - do I have any rights to see my grandchildren?
A. Yes. You fit within a particular class of important individuals which the court considers important to the development of your children and therefore you would be entitled to see them after you have approached the court for orders.
Q. What effect with the new changes in the family law system have on children?
A. All children will have a right to know both their parents and to be protected from harm.
Q. What impact will the new changes have on parents?
A. Parenting is regarded as a responsibility which should be shared equally. This may not mean equal time; it could mean substantial or significant time spent by both parents with the child.
Q. Is it true that these new family law changes mainly focus on children?
A. Yes. These changes in the law are all about putting the needs and best interests of children first.
Q. What are the responsibilities of parents in this regard?
A. Parents bear the responsibility for their children’s physical and emotional wellbeing which should be share equally between parents provided they are not subjected to abuse or violence. Co-operation between separating or separated parents is an essential part of these reforms.
Q. Do these reforms mean that children will spent equal amounts of time with each parent?
A. No. The focus is both parents will have an equal role in making decisions about important issues such as schooling and health care.
Q. How do parenting plans and parenting orders sit with each other?
A. Basically it means that both the parents and the court need to have the best interests of the child in mind at all times when making decisions affecting the child’s wellbeing.
Q. How will the courts determine how much time the child spends with each parent?
A. Courts will determine this by reference to what is in the best interests of the child and other practical considerations. Time can mean equal time or substantial or significant time with both parents which may include day to day routine time not just weekends and holidays.
Q. When will these changes which focus on cooperatively resolving disputes come into operation?
A. It is expected they will start on 1st July 2007 when parents will be required to attend family disputes resolution sessions and be expected to make a genuine effort to resolve issues and disputes before taking a parenting matter to court.
Q. How does the court system accommodate these changes?
A. In parenting cases there will be change to a case-management approach with the focus being on the early detection and dealing with of violence and abuse.
Q. What will happen where there has been a breach of parenting orders?
A. The court will have wider powers to deal with people who breach parenting orders.
Q. What will happen where parents fail to fulfil their responsibilities?
A. Where parents fail to fulfil their major parenting responsibilities the courts will be able to take these matters into account.
Q. At what stage will this disputes resolution mechanism come into play?
A. Separating parents will be required to undertake some form of disputes resolution for parenting disagreements before proceeding to court. Parents will have access to the new family relationship centres or may attend another accredited service or practitioner in this regard.
Q. Will it be compulsory for separating couples to attend a family relationship centre?
A. No, but the law will require separating parents to attempt disputes resolution before taking a parenting dispute to court.
Q. What does the court bear in mind when considering what is in the best interests of the child?
A. That the children know both their parents and to be protected from harm each being given equal weight.
Q. Are there any other considerations which are taken into account?
A. Yes. Additional consideration is given to views expressed by the child, the nature of the child’s relationship with his/her parents and other important persons such as grandparents, relatives and extended family members as well as the practical difficulties of a child having contact with a parent(s).
Q. Are children entitled to independent legal advice where a matter proceeds to court?
A. Yes. The court may order an independent lawyer be engaged to represent the best interests of the child and to inform the court of their independent view in this connection.
Q. What is a parenting plan?
A. A parenting plan is an agreement worked out between a child’s separating parents which can take any form provided it sets out the parenting arrangements for children. It must be produced in writing and dated and signed by both parents.
Q. Can a parenting plan be changed at any time?
A. Yes, as it is voluntary it needs to have the agreement of both parents. It should be borne in mind that parenting plans are not legally enforceable.
Q. Will the court have any regard to parenting plans if they are not legally enforceable?
A. When the court is making a parenting order in relation to a child they are required to consider the terms of the most recent parenting plan and to consider the extent to which both parents have complied with their obligations in relation to the child.
Q. Where a court has made a parenting order with respect to parenting arrangements can the parents change it without having to go back to court?
A. Yes provided the court order does not prohibit this.
Q. Although it is expected that family disputes resolution to new parenting cases will apply from mid-2007 when will it apply to all parenting cases?
A. The final date is expected to be mid-2008 but it will not apply in cases of family violence or child abuse.
Q. Will family disputes resolution apply in all cases?
A. No. It will only apply to parents who want to go to court over a parenting issue where it is compulsory unless they fit within the listed exceptions or where they have already agreed on parenting arrangements.
Q. How does the court know that compulsory family disputes resolution has already taken place?
A. This is because a certificate is required from an accredited family disputes resolution practitioner before the court can hear an application for a parenting order. Basically the certificate states that family disputes resolution did not work for a number of reasons.
Q. How will family violence and child abuse be dealt with under the current changes?
A. Family violence and child abuse will not be tolerated. This is the fundamental principle of the new reforms. Family violence includes actions or threats by a person against any family member or their property including witnessing such actions or threats. Fear and the apprehension of violence are addressed. A person must reasonably fear for or be apprehensive about their personal wellbeing or safety. The courts are required to act promptly in cases of violence or abuse. State and territory agencies are expected to investigate allegations of violence and abuse without delay.
Q. My de-facto partner and I recently separated and it is proposed that we split the assets 50:50. What should I do?
A. If there are no children then it is purely and simply a question of splitting the assets but it should be remembered that de-facto couples are not treated as generously as married couples. It really gets down to taking accounts and the extent of financial contribution made by each partner.
Rent Back
Dec
21
Massachusetts Foreclosure Process
Posted by: | CommentsMassachusetts foreclosures are usually performed by using two (2) methods at the same time: (1) Entry and Possession and (2) exercising the Power of Sale given in the mortgage document. The reason that both methods are used is to protect the bank and its representatives from any procedural defect in the Power of Sale foreclosure. By using the Entry and Possession method, the right of redemption will still be foreclosed upon after three years after entry is made.
In order to meet the conveyancing standards in Massachusetts, the lender needs to file a petition to foreclose either in the Superior Court or the Land Court. This court procedure is necessary under the Federal Soldiers and Sailors Relief Act which was originally passed to protect the possible interest of servicemen in property during World War II.
NOTICE OF INTENTION TO FORECLOSE (breach letter)
If the lender wants to chase the homeowner for any loss suffered as a result of the auctioning of the property at less than the amount owed on the mortgage, it must send the breach letter described in the previous chapter. This notice must be sent together with a warning of liability for the deficiency in a form similar to what is given in General Law chapter 244 section 17B. The notice must be sent not less than twenty-one days before the date of the sale. Then the bank must complete an affidavit sworn to, within thirty days after the foreclosure sale, indicating the sales price.
FILING A COMPLAINT TO FORECLOSE
A majority of the complaints to foreclose a mortgage in Massachusetts are filed in the Massachusetts Land Court. The other courts that have jurisdiction in Massachusetts are the Supreme Court and the Massachusetts Superior Courts. The petition should recite the facts of the mortgage, referring to the book and page of the registry record and the fact that the mortgage has been breached. The only issue that the Massachusetts courts are to decide is whether the borrower is entitled to the benefits of the Sailors and Soldiers Relief Act. The form of the complaint is given to the attorney by the Land Court. Upon filing of the complaint, the court will assign the lender an order of notice which the lender is required to publish in a specific newspaper in the county that the property is located. The order of notice must identify the name of the borrowers, the name of the lender, the date, book and page number of the mortgage and the return date.
ORDER OF NOTICE
Massachusetts requires that the order of notice must be published once not less than twenty-one days before the return day in a newspaper designated by the court. The order of notice must also be mailed to all interested persons not less than fourteen days before the return date. Finally, the order of notice must be recorded in the registry of deeds where the property lies prior to the return date or a time further allowed by the court. The time from the order of notice to the return date is six (6) weeks. When the attorney mails back his order of notice he will also forward a military affidavit and a motion to have the bill confessed.
The motion and the affidavit are formalities that are required for the lender to have a proper judgment.
JUDGMENT
If the work was performed properly the court will grant an interlocutory decree approving a sale the day after the return date. There is then a seven-day wait for the judgment to become final. This judgment is then mailed to the attorney and there is a thirty day appeal period in which the lender can move forward with its sale of the property. The lender should hold the sale within six months of the date of the judgment.
PROCEDURE FOR THE FORECLOSURE SALE
The lender or its representative will hire an auctioneer, set the sale date, time and place, and publicize the auction. The lender is required under Massachusetts’s law to publish the sale once a week for three consecutive weeks with the first date of publication being at least twenty-one days before the sale date. This notice will be found in the legal notices of most newspapers in Massachusetts.
LENDER’S DUTY AT THE FORECLOSURE SALE
Massachusetts requires that the lender act in good faith and with reasonable diligence. There have been many cases that have been argued and decided in Massachusetts, which have attempted to define the lender’s duty. The courts have held time and again that the inadequacy of the price at the foreclosure sale is not enough to set aside a foreclosure. In essence, the lenders had a duty to exercise good faith and diligence when holding a foreclosure sale. The lender must protect the rights of the borrower under the foreclosure sale.
This means that the lender must advertise the sale and attempt to get the highest possible bid at the sale. The failure to advertise the sale will not cause the investor any problems but will have a substantial result on the pocket book of the bank.
If all of the documents are filed correctly, an auction will be held and the property will be sold to the highest bidder.
Rent Back
Dec
20
How Is a Rent and Profits (Real Estate) Receivership Case Operated?
Posted by: | CommentsSeveral specific duties are outlined and required of a rents and profits receiver, and these are typically included in the operating clauses of the form order issued by the granting court. Of course, there are some challenges that can be expected while carrying out these duties as well.
First, the receiver must take possession of the property at issue and collect all pertinent documents, records and leases (including on-site equipment leases). Bank account information of the defendants should be gathered and overseen, and any security deposits paid by tenants are acquired.
Next, the receiver will obtain the defendant’s tax identification number (TIN) if needed, serve a demand letter on the defendant and current operator, and give notice to any and all tenants regarding the receivership.
Proper property management and/or financial controls are also implemented by a receiver. The receiver will need to collect rental income from the property’s tenants, open bank accounts for the deposit of these funds and pay for necessary expenses, and verify or obtain insurance on the property.
If the defendant has the information regarding insurance, the receiver can request these records, or verify insurance details with the lender. If insurance does exist, the agent must add the receiver as additional insured party; if no insurance is evident, a new policy should be secured by the receiver.
Locks may need to be changed, and an inventory of the property must be prepared and filed with the court. Empty buildings may be leased out by the receiver, but consent must be obtained from the court for any leases exceeding one year or more.
Monthly accounting reports will be submitted to all parties involved in the litigation – the plaintiff and defendant, as well as the court, depending on what requirements exist in the local rules of the court. Employment decisions must also be made by the receiver. Existing employees at the property will be screened, but may be terminated and new personnel hired to take their place. Additional personnel may be needed to conduct and administer the receivership, including accounting professionals or property managers.
Other challenges faced by a receiver include the need to remedy health code violations and to cure deferred maintenance, with court approval. In addition, in residential properties, the existence of mold and asbestos may create the potential for liability and the receiver must employ legal remediation methods to abate these potentially dangerous conditions.
Rent Back
Dec
16
The Tribunalization of Justice: the Constitutional Validity of the National Tax Tribunal
Posted by: | CommentsIntroduction:
The passing of the Forty Second Amendment to the Constitution of India in 1976, tribunals became key dramatis personae in the justice delivery system. In order to achieve the objectives of the amendment, which was to ensure speedy disposal of cases, an array of tribunals were set up. These included the Administrative Tribunals, the Rent Control Tribunals and also Tax Tribunals. The constitution and functioning of these tribunals have been controversial and intensely debated. The Constitution of the National Tax Tribunals, through the passing of the National Tax Tribunal Act, 2005 in pursuance of Article 323-B (1) (a). The Act provides a machinery for the adjudication by the National Tax Tribunal of disputes with respect to levy, assessment, collection and enforcement of direct taxes and also to provide for the adjudication by that Tribunal of disputes with respect to the determination of the rates of duties of customs and central excise on goods and the valuation of goods for the purposes of assessment of such duties as well as in matters relating to levy of tax on service. The Act is bound to raise constitutional issues of immense significance as to validity of conferral of the power and functions of the Tribunal, the exercise of such powers and functions, and the concept of judicial review under the Constitution.
The Edict Machinery of Tribunals in India:
The concept and the constitution and functioning of the Tribunals established under Administrative Tribunals Act. The exclusive jurisdiction hitherto have the benefit of by the Tribunals in service matter and distinguish the High Courts was put at stop partially by the Supreme Court of India in its landmark judgment in ‘L.Chandra Kumar Vs.Union of India and others. The Supreme Court diversified and re-distributed the jurisdiction of service matters etc in between these Tribunals for which purpose they have been established and High Courts as per the spirit of the Constitutional mandate enunciated by the framers of the Constitution, keeping in
view the ‘Basic Structure Theory’ and the provisions contained under Article 226,227, 32 and Articles 323 A and 323 B of the Constitution of India.
The salient feature of our Constitutional system that whenever new legislations or enactments are passed, either by Parliament or Legislative Assemblies, it is generally found that, they, being tested in courts of law, either on their validity as a whole or certain provisions of such acts if they are offending any provisions of Constitution, any public policy or established legal principles. Therefore, no exception was shown to the ‘Administrative Tribunals Act, 1985, enacted in terms of Article 323 –A of the Constitution of India. Consequent upon the establishment of service Tribunals in the country ‘under the Administrative Tribunals Act, 1985, a string of litigation had erupted before the High Courts of several States and also in Supreme Court, questioning the validity of certain provisions of the Act and also ultra vires of Articles 323-A and 323-B. Firstly, the ‘Apex Court’ by a Five Judge Constitution Bench, headed by the then Hon’ble Chief Justice, Justice P.N. Bhagwati, examined the constitutional validity of Article 323-A and its provisions in S.P. Sampath Kumar Vs. Union of India and others3 said Bench while upholding the validity of Article 323-A, held that the Service Tribunals created under Article 323-A are substitutes to the High Courts and the exclusion of the jurisdiction of High Courts is legal. Thereafter, a seven Judge Constitution Bench of the Supreme Court in ‘L. Chandra Kumar case’ while dealing with power of judicial review vested in High Courts and Supreme Court under Articles 226,227 and 32 respectively vis-a-vis Articles 323-A and 323-B not only deviated from the earlier discussion of the Supreme Court in ‘S.P. Sampath Kumar’s case’, but also held that, the Tribunals are supplementary in their role and the power of ‘Judicial Review’ vested in High Courts and Supreme Court under Articles 226, 227 and 32 is an inviolable basic structure of the Constitution and struck down clause 2(d) of Article 323-A and clause 3(d) of Article 323-B of the Constitution of India to the extent they exclude the jurisdiction of High Courts and Supreme Court under Articles 226/227 and 32 as unconstitutional and also Section 28 of the
‘Administrative Tribunals Act, 1985′ which excludes the jurisdiction of High Courts. The Supreme Court in the above case further held that: “The Tribunals created under Article 323-A and 323-B of the Constitution are possessed of the competence to test the constitutional validity of statutory provisions and rules. All decisions of these Tribunals will, however, be subject to scrutiny before a ‘Division Bench’ of the High Court within whose jurisdiction the concerned Tribunal falls. The Tribunal will, nevertheless, continue to act like Courts of ‘first instance’ in respect of the areas of law for which they have been constituted. It will not, therefore, be open or litigants to directly approach the High Courts even in cases where they question the vires of statutory legislations (except where the legislation which creates the particular Tribunal is challenged) by overlooking the jurisdiction of the concerned Tribunal.” In the same case, when an argument was advanced for the superintendence over the Tribunals by the concerned High Courts, the Supreme Court categorically held as follows: “To this end, it is suggested that the Tribunals be made subject to the supervisory jurisdiction of the High Court within whose territorial jurisdiction they fall. We are, however, of the view that this may not be the best way of solving the problem. We do not think that our Constitutional scheme requires that all adjudicating bodies which fall within the territorial jurisdiction of the High Courts should be subject to their supervisory jurisdiction. If the idea is to divest the High Courts of their onerous burdens, then adding to their supervisory functions cannot in any manner, be of assistance to them”. Therefore, in view of the law laid down by the Supreme Court in ‘Chandra Kumar’s case’(emphasis furnished supra) this Tribunal is now functioning as a ‘Court of first instance’ like any other Tribunal in the country established under Article 323-A of the Constitution of India. It is also to be noted that the ‘Judicial Review’ propounded by the Supreme court in ‘Chandra Kumar’s case cannot be treated/equated with an ‘Appeal’ in as much as the constitutional exercise by way of ‘Judicial Review’ displayed by the High Courts originated from the ‘Basic Structure Theory’ read with Articles 226 and 227 of the Constitution of India.
Appellate provisions under the direct and indirect tax enactments
Aforementioned to National Tax Tribunal, under the direct and indirect tax enactments, appeals on substantial questions of law from the decisions of tribunals such as the Income Tax Appellate Tribunal and the Customs, Excise and Service Tax Appellate Tribunal lies to the High Court.
The Income Tax Appellate Tribunal Under Section 252 of the Income Tax Act, 1961 an appellate tribunal known as Income Tax Appellate Tribunal has been set up which consists of both judicial members as well as Accountant members. This tribunal hears appeals against orders passed by the Deputy Commissioner of Appeals or the Commissioner of Appeals, as specified in Section 253 of the Act on questions of law as well as questions of fact. Under the direct tax regime, Income Tax Appellate Tribunal is the final authority as regards determination of questions of fact. Under Section 260 A of the same Act, an appeal lies to the High Court, from every order passed by the Income Tax Appellate Tribunal if the High court is satisfied that the case involves a substantial question of law. However, there is also a provision for filing further appeals to the Supreme Court from any judgment of the High Court as specified under Section 261, only if the High Court certifies that the case is fit for appeal to the Supreme Court. In cases where High Court refuses to give such certificate, the aggrieved party has an option to invoke extraordinary jurisdiction of Supreme Court through special leave petition under Article 136 of the Constitution of India. Income Tax Appellate Tribunal, High Courts and the Supreme Court have been given similar powers of hearing appeals in respect of disputes concerning wealth tax under the Wealth Tax Act, 1957. The Customs, Excise and Service Tax Appellate Tribunal Under Section 129 of the Customs Act, 1962 the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has been constituted which consists of Judicial as well as Technical Members. The Tribunal hears appeals against orders passed by the authorities mentioned in Section 129 A of the Customs Act. It also hears appeals against orders passed by the excise authorities as specified in Section 35 B of the Central Excise Act, 1944. Earlier, instead of appeal a reference used to lie regarding questions of law. An appeal lies to the High Court on a substantial question of law against an order passed by the Customs, Excise and Service Tax Appellate Tribunal, under Section 130 of the Customs Act, as substituted by the Finance Bill, 2003. Similar provision has been incorporated in respect of appeals to High Courts under the Central Excise Act, 1944. The tribunal also has appellate jurisdiction in anti-dumping matters and the Special Bench headed by the President of the tribunal hears appeals against orders passed by the designated authority in the Ministry of Commerce. The appeals under the Service Tax are also heard by the tribunal. This tribunal is the appellate authority on matters relating to classification and valuation, with the appeals lying to the Supreme Court in these matters.
The Need for Establishment of National Tax Tribunal in India:
The necessity for uniformity and certainty in the administration of tax laws (both direct and indirect tax laws), appeals or references from the orders of the Income Tax Appellate Tribunal and the Customs, Excise and Service Tax Appellate Tribunal lie with the High Courts, these Courts get flooded with such cases which need considerable time to dispose them. Due to the heavy workload of the High Courts, there is a huge backlog of tax related cases as a result of which huge revenue is blocked in such litigations. This is adversely affecting the national economy. Hence, urgent measures are required to be taken to speed up taxation matters pending
before the High Courts. It may also be noted that there are at present 21 High Courts. Many a time, decisions of the High Courts vary from each other which create uncertainty, delays and problems in the administration of tax matters. Conflict of decisions amongst various High Courts
on the same point of law have the effect of distorting uniformity and give rise to unnecessary appeals to the Supreme Court which results in further delay.
National Tax Tribunal will help in clearing the backlog and mitigating the burden that lie at the doors of High Courts. The constitution of the National Tax Tribunal would relieve the taxpayers from the burden of pursuing the tax disputes for a long period and substantially reduce the workload of different High Courts which could not concentrate and devote as much focus which the complex tax laws presently demand.
Judicial Sovereignty and the National Tax Tribunal
In the Landmark Judgments of the Court in L Chandra Kumar and Sampath Kumar that even if the Tribunals have to play a supplemental role, given the powers that they enjoy, including the power to strike down legislation as ultra vires the constitution, the NTT will have to enjoy Judicial Sovereignty as understood in the Indian constitutional context. Judicial Sovereignty in India always has been a very controversial subject. The judicial pronouncements and the scholastic opinion in this regard, point out different stages at which the independence of the judiciary will have to be assessed. Judicial Sovereignty will include the collective independence of the judiciary from the other branches of the State and also the independence of the individual judges. The first aspect relates to appointment, removal etc whereas, the second aspect relates to matters concerned with security of tenure, salaries and allowance etc. Let us take up these issues in relation to the National Tax Tribunal. The Members and the Chairperson of the National Tax Tribunal are appointed by the Central Government in accordance with the recommendation of a selection committee consisting of the Chief Justice of India or his nominee. Though the other two members in the committee are not from the judiciary, it is submitted that this is sufficient safeguard against executive fiat. In terms of the qualification also sufficient safeguards seem to have been provided. The legislation provides that all members including the Chairperson have sufficient legal qualifications and adequate experience to handle complex matters relating to tax as also maters relating to the vires or otherwise of legislations and administrative actions. More importantly, the method of removal of the member and the Chairperson also has been made sufficiently elaborate to minimize executive interference. Section 11 provides that removal and suspension can take place only in consultation with the Chief Justice and on completion of a formal enquiry. The Chairperson also has been given enough discretion to constitute the benches of the National Tax Tribunal. In terms of salaries and other benefits, the members and the Chairperson have been accorded the same status as that of High Court judges. Also of significance is the fact that these Tribunals have been vested with contempt powers under section 12 of the NTTA, 2005 in addition to certain powers of the Civil Court granted to it in section 16. The legislation also protects actions taken in good faith in the course of discharge of duties by any member, Chairperson or other employee, which also helps in maintaining judicial independence. In all it is submitted that the provisions of the enactment do indeed secure judicial sovereignty.
The Differentiation of National Tax Tribunal and High Courts in India
There is a provision in the Act that may cause adversity to tax-payers. The Act stipulates that an appeal before the NTT can be preferred only if the appellant deposits at least 25 per cent of the tax or duty payable on the basis of the order appealed against. The NTT is also given the discretion to condone this requirement. There is no such stipulation in cases that go before the
high court. Yet another distinction is that no interim order can be passed by the NTT without hearing the other party. No Tribunal constituted under 323A or 323B of the Constitution can ever
oust the jurisdiction of the high court under Articles 226/227 of the Constitution. The writ jurisdiction of the high court will continue, despite the provision that appeals from the NTT will go to the Supreme Court. The NTT will, therefore, be one more forum working along with the
High court.
The Government makes it appear that there is huge pendency before the various high courts involving fiscal disputes. The truth seems to be that the overall pendency does not exceed 30,000 cases, the maximum being around 10,000 in Mumbai and an equal number in Delhi. Probably, constitution of permanent tax benches in these two High Courts will solve the problem for revenue. The NTT will not be governed by the Civil Procedure Code, though rules of natural justice will apply.
Conclusion
There cannot be fault with the intention of the Government, to reduce the backlog of cases, in proposing the National Tax Tribunal, but the way in which the NTT has been setup raises a lot of concern. Apart from creating multiple and simultaneous structure for the resolution of tax disputes, which will obviously lead to a lot of turmoil, the NTT also faces challenges in the form of allowing Chartered Accounts to appear before it. The enactment seems to fair well in terms of securing the independence of the judiciary but fails the Constitution on account of abridging the writ jurisdiction of the High Courts in relation to the transfer of cases. This is a grave blemish that will have to be rectified. Efficiency arguments for and against the Tribunal can be analyzed or answered only if a systematic and scientific study happens in that regard. The Law Commission must come out with official statistics in this regard. More importantly, we will have to decide whether Tribunals are the best way to deliver justice in relation to tax matters or whether mere creation of exclusive tax benches in the High courts would solve the problem. Vacancies in the High Courts are not filled regularly nor is there a concerted effort at the national level to streamline procedures relating to dispose off pending disputes. The Government has not been able to come up with any realistic presentation statistics of existing tribunals nor has it explained tribunalize the tax administration for the justice further. At least in future, efforts like this, to create an alternative forum and working substitute for the Court must be backed with methodical study, more debates and comprehensive planning, in order to guarantee that they do not end up as unproductive outlay at the hands of the exchequer.
Bibliography:
1) Durga Das Basu- Shorter Constitution of India- Thirteenth Edition 2001 Wadhwa Nagpur.
2) H.M.Seervai-Constitutional Law of India: A Critical Commentary- Universal Law Publishers
3) Walter W. Brudno- Taxation in India-Harvard Law School International Program in Taxation.
4) The National Tax Tribunal Act, 2005- Bharatgazette Government of India.
5) The National Tax Tribunal (Amendment) Act, 2007- Manupatra Bare Act.
Repossession
Dec
15
Purchase Order Financing- Easy Money
Posted by: | CommentsAccording to Dictionary.com, the word easy has about 17 definitions. The most relevant definitions are:
“1. Not hard or difficult; 6. Not burdensome or oppressive; 7. Not difficult to influence or overcome; 11. Not tight or constricting; 14. In commerce it means not difficult to obtain.” As used in this article, easy money is meant to convey the idea that, notwithstanding these very difficult times in 2008 where money is tight and difficult to obtain, under certain circumstances a business that sells products to other businesses can easily obtain money to grow exponentially.
On our planet earth, man did not invent money for thousands of years. As civilizations and nation states developed, man learned how to trade and barter for goods that they needed. Money was invented to solve the problems of bartering. There basically was a timing issue between, for instance, farmers having a crop to trade for what they wanted when they needed it. The invention and acceptance of gold and silver coins helped to overcome this timing mismatch. The farmer could sell crops for gold and trade gold, when needed, for the other things they required.
Paper money was invented for many reasons, not the least of which is to avoid the inconvenience of carrying around a large amount of gold or silver. Paper money is easier to hide. Until the early 1900’s in the United States paper money could actually be redeemed for gold. During the Great Depression, President Roosevelt in 1933 passed laws outlawing the ownership of more that $100 of gold by individuals. By the turn of the century, the U.S. government discovered easy money. No longer restricted by the need for physical gold reserves, the government printing presses churned out however much money as they needed; and the politicians invented schemes such as the sale of government bonds, government loans of various kinds, and control of the money supply through twelve regional Federal Reserve Banks to manage the nation’s economy and money supply.
Our government’s easy money in fact is causing every American a very steep price. As the world economy realizes our money has less worth, we are charged more for imports such as gas, clothes, and food; if we travel abroad, in Europe for instance, we find that it takes about one and a half U.S. dollars to purchase a single Euro, the currency of Europe. In effect, European hotels, restaurants, goods and services cost fifty percent more for Americans because of the weakness in our dollar. Ironically, U.S. musicians make more money in Europe than they can make in America because it costs less to pay them “in dollars”. In spite of this economic situation, many U.S. businesses are innovative, creative and ready to grow at a very rapid pace. Purchase Order Financing can be the easy money solution to rapid growth requirements.
Why does it work? Purchase order financing solves the timing problem to pay a manufacturer for goods before the buyer pays the seller for the product just like paper money and gold solved the barter timing mismatch problem. One real world example is the case of a company that developed popular products for dogs and cats. Most of their customers were small stores. One day they received a huge order from a big box store that would virtually double their business on a monthly basis. The business did not have the cash to fulfill the order. Purchase order financing provided the solution to their cash flow shortage to pay for the manufacture of the products and get the goods shipped to the big box customer.
How does it work? A letter of credit is issued to the manufacturer to guarantee payment. The costs of goods are paid to the manufacturer as soon as the goods are delivered, in the example above, to the big box store. An account receivable financing arrangement is created to pay for the purchase order and letter of credit side of the transaction. When the buyer pays the accounts receivable, the lender, generally a finance company or bank subsidiary, is paid pursuant to the contract and the profits are rebated to the seller.
Why is it easy money? Because the credit of the seller is not the main criteria to secure the financing; the credit of the buyer is used to support the financing. Nevertheless, good character and experience are important to lenders. During the due diligence process lenders need to determine that no prior UCC-1 liens exist with respect to the company. If there are serious credit issues such as bankruptcy, the approval of a bankruptcy court for the debtor in possession would be required. These types of situations would not typically be approved by a Bank, but the financing is still relatively easy to obtain considering the circumstances. And it is available if virtually unlimited amounts of capital. As the business grows so to will the finance facility grow so long as the purchase orders are from solid, creditworthy entities.
In 1959 Barry Gordy, the founder of Motown Records, and Janie Bradford wrote a song called “Money” (That’s What I Want). The song was the first big hit for the record label. It was covered by the Beatles in 1963. Everyone wants easy money. Here are the lyrics:
The best things in life are free
But you can keep ‘em for the birds and bees
Now give me money (that’s what I want)
That’s what I want (that’s what I want)
That’s what I want (that’s what I want), yeah
That’s what I want
Your lovin’ gives me a thrill
But your lovin’ don’t pay my bills
Now give me money (that’s what I want)
That’s what I want (that’s what I want)
That’s what I want (that’s what I want), yeah
That’s what I want
Money don’t get everything, it’s true
What it don’t get, I can’t use
Now give me money (that’s what I want)
That’s what I want (that’s what I want)
That’s what I want (that’s what I want), yeah
That’s what I want
Well, now give me money (that’s what I want)
A lot of money (that’s what I want)
Whoa, yeah, you owe me money (that’s what I want)
Oh, now give me money (that’s what I want)
That’s what I want (that’s what I want), yeah
That’s what I want.
The bottom line: Purchase Order Financing is easy money compared to traditional bank financing. Similar to the government printing presses for paper money, purchase order financing combined with accounts receivable financing, or factoring, can be a source of virtually unlimited cash for your business. Is that what you want?
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