Bill: Rejected Bankrupcy Act October 2021

[1950Minecrafter]

A
Bill To

Legislate on Bankrupcy​

The people of Democracy Craft, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment

(1) This Act may be cited as the "Bankrupcy Act October 2021"
(2) This act shall take effect upon signage
(3) This act is co-sponsored by ReinausPrinzzip

2 - Reasons
There's no procedure for when bankrupcy is declared and it is something that should be codified in order to prevent any misunderstandings and problems in the future.

1. Bankruptcy
   1. Who can be announced bankrupt: Companies, Charities, Government entities, Political parties, a Person/Player
   2. Every entity that’s listed in point A needs to announce bankruptcy when they can’t pay the sum/bill. The entity is obligated to follow the procedure explained in point II.
2. Procedure when announced bankruptcy
   1. The entity has to come forward in the Courts to announce their bankruptcy. The Court will set the DEC on the case and will seize all the possessions of the entity.
   2. Every person in possession of something previously owned by the entity (shares, cars, money, goods, etc) needs to present themselves and claim in front of Court to be a Creditor.
   3. The DEC will sell everything and with all the money received, will the DEC pay the Creditors, following the order that is presented in point E, as much as possible.
   4. What about the rest of the money the Creditors lost: They can ask each one their part of the total money up to 5k dollars to the player who announced bankruptcy. They have 6 months to pay the Creditors back.
   5. Order of the people who get the payment (within every category the remaining of the money needs to be split evenly.) :
      1. The people who owned a good (example: A car). Proof is mandatory. You can’t prove it is your money. Money has no earmark so you will have to present yourself as a Creditor who can’t prove it.
      2. The people who sold the entity something and didn’t receive the money. (Example they bought a car and they would have paid within 2 weeks)
      3. The people who worked for the entity and didn’t receive their wage
      4. The shareholders of the Company
      5. The people who can’t prove they owned the good.
   6. When completed the DEC delivers a report to the Court of the Bankruptcy in detail so they can accept it when everything went following the procedure and no fraud was committed.
3. Bankruptcy at companies
   1. At a limited company the debt stays at the company and won’t move on to the management. They are protected from the Creditors. They won’t inherit the debt of the entity.
   2. At a Private Company the debt moves on to the management following the rule II.D
4. Government
   1. The entity can be bankrupt but will never lay his debt on the officials. The Government will have to follow a debt mediation ordered by the Courts and followed up by the Chief of Justice or an appointed Auditor by the Courts, at the Courts discretion.
5. Political Parties and Charities
   1. Management is protected for the Creditors. When all the possessions are sold the Creditors will have to leave even if the full sum is not returned.
   2. The name of both entities can’t be used again after bankruptcy
6. Person/Player
   1. The Person will follow the procedure of bankruptcy.

1950minecrafter
Representative​