Bankruptcy

Question 1

What documents must be prepared to begin petitioning for Bankruptcy?

Answer 1

Last 2 years of filed Tax Returns
Past 6 months Pay Stubs and Bank Statements
All Debt Statements and Credit Report

Question 2

What information makes up the “Supporting Schedules” in a petition for Bankruptcy?

Answer 2

Debts and Assets

Question 3

What information in a petition for Bankruptcy, falls under the “Statement” heading?

Answer 3

Creditors, Assets, Financial History, Liabilities

Question 4

What does the B22A Form Consist of?

www.uscourts.gov/bkforms/index.html.

Answer 4

Report on Current Monthly Income

Means Test Calculation

Question 5

What is the B22C form?

Answer 5

Means Test Calculation

Question 6

What parties will be present at the 341 Meeting?

Answer 6

US Trustee and Creditors

Question 7

What are two requirements needed to file for Chapter 7 or Chapter 13 Bankruptcy?

Answer 7

Take a Credit Counseling Course

Submit Request for Relief Statement

Question 8

What meeting must one attend at the Bankruptcy Court?

Answer 8

341 Meeting

Question 9

What is the purpose of Form B22A?

Answer 9

To determine whether a presumption of abuse arises.

Question 10

Which bankruptcy laws permit a debtor to claim exemptions?

Answer 10

U.S.C. 522(m)

Question 11

Who administers the Bankruptcy Administrator Program?

Answer 11

The Administrative Office of the United States Courts

Question 12

Who administers the U.S. Trustee program?

Answer 12

The Department of Justice

Question 13

What is the difference between secured and unsecured debts?

Answer 13

Unsecured debts are those for which the extension of credit was based on credit score, whereas Unsecured debts are those for which the extension of credit was based upon the creditor’s right to seize collateral on default, in addition to the debtor’s ability to pay (like school loans, apparently)

Question 14

What is the approximate total household income?

Answer 14

$5040 (2100, 2200, 240, 500)

Question 15

What are the main household expenses

Answer 15

Mortgage (900), Car Loan (375, 275), Daycare (816), Electricity (200), AT&T (100), Gas (300), Food (500), Jeep Insurance (145), Yaris Insurance (120)

Question 16

What is the approximate total household expenses?

Answer 16

$3871

Question 17

What factors are counted in the Means Test?

Answer 17

Disposable Income, Unsecured Debts, Allowable Expenses, Creditor Repayment

Question 18

What are some reasons why the court may deny a debtor ‘discharge’ under the petition for a Chapter 7 Bankruptcy?

Answer 18

Failed to produce adequate books or financial records
Failed to explain adequately any loss of assets
Failed to obey lawful order of the bankruptcy court
Failed to complete an approved instructional course concerning financial management

Question 19

What is the agreement between the debtor and the creditor that can be arranged so that a creditor will not repossess an automobile or other property during a Chapter 7 Bankruptcy, so long as the debtor continues to pay the debt?

Answer 19

Reaffirmation

Question 20

Under what court code must a debtor file Reaffirmation Agreements?

Answer 20

11 U.S.C. 524(c)

Question 21

Under what court code can a debtor find the set of disclosures contained in Reaffirmation Agreements, and what are some of the informational items that it treats?

Answer 21

11 U.S.C. 524(k)
Amount of debt being reaffirmed, how it is calculated
Confirmation that debtor’s liability will not be discharged
Statement of income and expenses

Question 22

What is the purpose of the Statement of Income and Expenses disclosure in a Reaffirmation Agreement?

Answer 22

To show that the balance of income paying expenses is sufficient to pay the reaffirmed debt

Question 23

What happens when a debtor is not represented by an attorney and the balance derived from the Statement of Income and Expenses disclosure in a Reaffirmation Agreement is not sufficient to pay the debt to be reaffirmed?

Answer 23

There will be a presumption of undue hardship, and the court may decide not to approve the reaffirmation agreement; i.e. the Bankruptcy Judge must approve the Reaffirmation Agreement.

Question 24

What must an attorney certify in writing to the court before filing a Reaffirmation Agreement? Under what court code?

Answer 24

That they advised debtor of the legal effect and consequences of the agreement, including default under the agreement, that the debt will not create undue hardship for the debtor or the debtor’s dependents.
11 U.S.C. 524(k)

Question 25

What does the Bankruptcy court code 11 U.S.C. 524(k) require when a debtor files a Reaffirmation Agreement without being represented by an attorney during the negotiation of the agreement?

Answer 25

A Reaffirmation Hearing

Question 26

What are debts that would not be discharged by a Chapter 7 Bankruptcy?

Answer 26

Alimony and Child Support, Educational benefit over-payments, loans guaranteed by a governmental unit