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13 Cards in this Set
- Front
- Back
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Federal Bankruptcy Act of 1978
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Fair distribution to Creditors;
Protection of Creditors against actions by debtor that would hurt them; Relief to debtors from demands for payment, and ultimately a “fresh start.” This Act was significantly amended in 2005 with the primary purpose to make it more difficult for individuals to file for Chapter 7 liquidation. |
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Debtors who earn more than the median income in their state and who can repay $6,000 of their debt over 5 years must file Chapter 13.
Requirements for Credit Counseling prior to filing for bankruptcy. Attorney Certification that he/she has no knowledge information filed is incorrect. |
Means Test
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bankruptcy petition must include:
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List of secured and unsecured creditors and addresses and amount of money owed.
List of all property owned including property claimed. Detail of current income and expenses |
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halting all creditor action against a debtor or the property, including:
Beginning or continuing judicial proceedings against the debtor Actions to repossess the debtor’s property; Actions to create, perfect, or enforce a lien against the debtor’s property. |
automatic stay
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Sets aside property a debtor may keep
Takes possession of debtor’s property and has it appraised Examines creditor claims, objecting if necessary Separates unsecured property from the secured and otherwise exempt property |
trustee
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Any defense that could have been used by the debtor can also be used by the trustee to void the transaction.
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Voidable Rights.
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Debtor cannot transfer property for pre-existing debt within 90 days of filing the petition
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Voidable Preferences
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Trustee can avoid some statutory liens.
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Liens on Debtor’s Property
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If a debtor transfers property or incurs an obligation within two years or with the intent to hinder, delay, or defraud creditors, the transfer is voidable.
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Fraudulent Transfers
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What makes up property of the “estate"?
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-legal (nonexempt) propety
-avoidable (nullified) transactions -after-aquired property after filing (within 180 days) -profits/proceeds from all above |
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Certain types of debts are nonetheless non-dischargeable
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Fraud on part of Debtor
DWI Judgments Failure to list Creditor name Government Taxes, Fines, Penalties Domestic Support Payments Student loans Exceptions for “undue hardship.” |
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In some cases a Debtor may wish to pay a debt notwithstanding the debt could be discharged in bankruptcy.
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Reaffirmation” of Debt
-must now be filed with court. -Debtor can also rescind (to invalidate an act, measure, etc.by a later action or a higher authority.) agreement at any time. |
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Chapter 7 -Straight Bankruptcy, Liquidation
Chapter 11- Reorganizations Chapter 13- Consumer Debt Adjustments |
Yep
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