Legal and Practical Aspects of Islamic Securitisation Essay

Legal and Practical Aspects of Islamic Securitisation - Essay Example The term â€Å"Islamic finance† is a recent invention having only appeared in the middle of the 1980s. Previously, any commercial activities that complied with Islam was referred to as â€Å"interest free† or â€Å"Islamic banking†. The impetus for establishing Islamic financial systems grew out of perceptions on the part of many Muslims that they existed in an essentially hostile â€Å"non-Muslim environment.† Spurred by the increase in rich oil resources during the 1973 – 1974 after a global oil crisis, oil producing Muslim countries were encouraged to implement innovative financial tools that closely resembled those used by Western businesses. In more recent times, Islamic Banking and Finance initiatives have expanded at a rapid rate throughout Muslim countries and in non-Muslim countries with large Muslim populations. As a result, Islamic Banking and Finance is gaining currency in significant Western businesses. This is an interesting and unique development given that Islamic finance is governed by the Shariah and as such is not a universal concept. The fact is the Shariah or Islamic law governs all daily activities of Muslims. From a financial perspective, the Shariah governs not only how capital can be acquired but also how it can be discharged. While wealth may be acquired, it may only be acquired by methods that are fair to all participants.

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act Essay

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act - Essay Example The act implemented ways to make the process of filing for bankruptcy very long and costly in order to reduce the number of people filing for bankruptcy. People filing for bankruptcy undergo credit counselling intended to change their minds on filing for bankruptcy (Scott 2005). Later, those proceed to file for bankruptcy undergo means test to evaluate and determine their need and eligibility to file for bankruptcy. The establishment of this act has therefore worked to improve the cases filed on bankruptcy. This is because anyone who puts any file on a bankruptcy gets an opportunity to undergo credit counselling. With this counselling companies and individuals are able to have a clear analysis of their budges to avoid bankruptcy (Scott 2005). In that case, when individuals have critically well analysed and established budgets, they will be a position to have an insight of their ability to file for bankruptcy. This therefore eliminates the filing of bankruptcy by consumers without clear understanding of their ability to pay back their debts. Provision for counselling also helps people to plan on the options they have on paying their debts. These also provide a consideration of the available methods of paying back debts which can either be the priority of debts subject to the prevailing rate of interest or the consolidation of debts (Carroll 2007). After all this analysis, individuals will then be at their own free will to whether to file for the bankruptcy as they initially intended or to avoid it completely. On most cases, people who file for bankruptcy are very desperate for money. In that case, taking them through bankruptcy does not amount to any use at all. Individuals go ahead to file for bankruptcy in a financial state of dire need. After the counselling they proceed to file for the bankruptcy. This therefore is almost