Bankruptcy: Distribution of Debtor's Estate

Question 1

Bankruptcy:

Determining Credtiors

Answer 1

Determining Credtiors

• must file within 90 days (180 for gov & tax)
• all legal obligations of debtor are claims
• not anything illegal
• not unexpired lease of debtor

Question 2

Bankruptcy:

Distribution of Estate

Answer 2

A. Perfected Secured Parties
- right to collateral to cover debt plus fees
- any deficit becomes unsecured
B. Domestic Support Claims
C. Administrative costs
D. Claims in ordinary course of business
E. Employee Wages (current not back wages)
F Contributions to Employee Benefit Plans
- limited amount remainder treated as general creditor
G. Claims of farm producers and fishermen
- limited amount remainder treated as general creditor
H. Consumer Creditors
I. Government for taxes
J. Death or personal injury
K. General unsecured creditors
L. Remainder goes to debtor