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10 Cards in this Set
- Front
- Back
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Bankruptcy
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Bankruptcy
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What are the requirements for filing under Chapter 13 (indiv. reorg)?
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- plan to repay creditors over time (3-5 years)
- must pass best interest of creditors test (each C must get as much as liquidation under chapter 7) - only individuals, liq. unsecured debt < $336,900, liq. secured debt < $1,010,650 |
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What are the requirements for filing Chapter 11 (biz or indiv. reorg)?
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- all businesses
- individuals with debts > requirements of chapter 13 - more burdensome than chapter 13 because requires approval of bankruptcy plan by creditors |
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What is Chapter 7?
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- debtor's non-exempt assets are liquidated and debts discharged
- means test: court looks at median income of families size of debtors in state. - if income not over media, debtor can file Chapter 7. |
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What must a person file to declare bankrupcty?
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Petition containing:
1. list of creditors 2. schedule of assets and liabilities 3. schedule of current income and expenditures |
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What happens when bankruptcy is filed?
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Automatic stay for duration of bankruptcy halts collection activity, except:
1. domestic support ob. 2. civil action for paternity 3. child custody/visitation 4. divorce 5. re: domestic violence |
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What is exempt from bankruptcy?
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Personal property: $60k family, $30k individual
Homestead: debtor keeps home w/o regard to value |
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A bankruptcy trustee has what powers?
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1. hypothetical lien creditor
2. hypothetical BFP of real estate 3. can claim rights of other creditors 4. can avoid fraudulent transfers 5. can avoid preferential transfers to creditors |
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What is the order of priority in claim payment?
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1. secured claims and secured judicial lien creditors
2. priority claims in following order: dom. support rights, admin expenses, inv. gap claim, wage claims, cont to emp ben plan, claims against grain/fish storage fac., consumer deposits, tax claims, ins. fed. deps, PI or death caused by drugs/alcohol |
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What debts are not dischargeable?
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1. tax claims
2. debts incurred by fraud 3. luxury goods ($550+ on credit w/in 90 days of filing) 4. cash advances ($825+ w/in 70 days) 5. unscheduled debts 6. debts for embezzlement, larceny, fid. fraud 7. dom supp. ob 8. liab for mal. will. injury 9. student loans 10. condo/HOA fees 11. rest. for fed crime |
