Chap 3 bankruptcy

Question 1

chap 3 of the bankruptcy code

Answer 1

contains provisions dealing with the commencement of the case, the meetings of creditors, the officers who administer the case and the officers administrative powers

Question 2

commencement if the case voluntary petitions

Answer 2

any eligible person may file a voluntary petition for bankruptcy which must list all creditors, property owned, list of exempt property, and a statement of the debtors affairs

filing constitutes an automatic order for relief which simply means that the case may proceed unless a court orders otherwise. insolvency is not required in order to file a voluntary petition

Question 3

involuntary petitions

Answer 3

a debtor with 12 or more creditors may be forced into involuntary bankruptcy ( 7 or 11) if the petition is filed by 3 or more creditors with unsecured claims in the aggregate of $15,325 or more, or if thee are fewer than 12 creditors and one of them has unsecured claims of $15,325 or more

Question 4

farmers and banking, insurance, or not for profit corporations

Answer 4

cannot be forced into involuntary bankrupt

Question 5

if the involuntary petition is not contested

Answer 5

the court will enter an order for relief against the debtor

creditors must show that the debtor generally is not paying his debts when they come due

Question 6

automatic stays

Answer 6

following the filing of a voluntary or involuntary petition an order of relief is issued: all creditors are precluded from taking legal action against the debtor

Question 7

automatic stays do not apply to

Answer 7

criminal proceedings, paternity suits, or proceedings brought to establish child and or spousal support

Question 8

trustees are appointed

Answer 8

for chaps 7 and 13

Question 9

the trustee of an estate

Answer 9

may be selected by the creditors (chap 7, or, if the court orders a trustee, in chap 11) or appointer, (chap 12 and 13).

under chap 7, the trustee is responsible for collecting, liquidating and distributing the debtors estate

Question 10

meeting of creditors

Answer 10

within a reasonable time after the relief is ordered, a meeting of creditors must be held

thought the court may not attend this meeting, the debtor must appear and submit to an examination of his financial situation by the creditors and trustee

in a proceeding under chap 7, qualified creditors at this meeting elect a permanent trustee

Question 11

chap 7 vs chap 11

Answer 11

chap 7 is liquidation, chap 11 is reorganization

Question 12

what is a voluntary petition

Answer 12

you put your self in bankruptcy

Question 13

is insolvency a requirement to file for bankruptcy?

Answer 13

no

Question 14

what does chap 13 do?

Answer 14

just gives you more time to pay