Bankruptcy

Question 1

What’s included in Debtor’s estate

Answer 1

1) Tangible & intangible property 2) All property acquired w/in 180 days following bankruptcy

Question 2

Distribution priorities (10) in order

Answer 2

1) Secured parties 2) Child support & alimony 3) Adm. costs 4) Ordinary course of business after petition is filed but before order of relief 5) Employee wages 12,475 max, 180 days preceding petition 6) Contribution to benefit plans 12,475 max, 180 days preceding petition 7) Raising storage or grain 6,325 max 8) Consumer deposit 2,850 max 9) Taxes 10) Unsecured creditors

Question 3

Who can seek chapter 7 bankruptcy

Answer 3

Any person or company. Exception would be an insurance company

Question 4

What is a writ of garnishment

Answer 4

Allows a creditor to collect money from a debtor’s wages if ordered by a court. Can’t take more than 25% of take-home pay & SS is exempt

Question 5

Who is not eligible for chapter 7 bankruptcy

Answer 5

Railroads, insurance companies, savings bank, savings & loan, cooperative banks and SBA entities

Question 6

List the nondischargable debts

Answer 6

1) Taxes w/in 3 years of filing 2) Fraud 3) Willful & malicious injuries 4) Debts incurred by DWI 5) Alimony & child support 6) Unscheduled debts 7) Fraud as fiduciary (embezzlement) 8) Student loans 9) Prior bankruptcy 10) Consumer debt w/in 90 days of filing