Chapter 1 Flashcards
which bankruptcy chapter is a straight liquidation?
chapter 7
what is the DR’s objective in filing a chapter 7?
be free of debt and get fresh start
what are the Ch 7 TT’s 3 main roles?
- collect nonexempt property of the estate
- liquidate such property
- use proceeds to pay expenses and CR claims
who usually files chapter 11’s?
businesses
are individuals eligible for chapter 11’s?
yes but they are expensive which is why they are usually filed by businesses
does a chapter 11 BK usually have a TT?
no, there is usually a DR in possession
what is the philosophy behind a chapter 12 and a chapter 13?
balance forgiveness of the debt w/ repayment of the debt
who is eligible for chapter 12?
family farmers or fishermen
which bankruptcy is for individuals only?
chapter 13
does a chapter 13 have a TT or debtor in possession?
standing TT
what does the standing TT deal w/ in a chapter 13 in terms of the bankruptcy estate?
the earnings of the DR
who does bankruptcy in general largely focus on?
the consumer
which bankruptcy features the fresh start policy?
chapter 7
T/F: everyone is eligible for a fresh start under chapter 7
false; means test under which a can pay DR must file chapter 13
in the very beginning, what happens immediately upon filing BK?
the automatic stay
what section discusses the automatic stay?
362
what affects the scope of the automatic stay?
what constitutes property of the estate
what happens at the meeting of creditors?
the creditors examine the DR about his/her debts
is the DR required to attend the meeting of creditors?
yes
what is a proof of claim?
A written statement setting forth a CR’s claim that is usually filed by the CR
generally speaking, what type of claim can be paid by the BK estate?
an allowed claim
what does it mean to say a claim is allowed?
it means that the claim will be paid b/c the BK court recognized the claim is valid in the amount claimed
in general, what is the role of a TT?
represent creditors as a group
which part of the constitution limits BK law?
the DP clause
what is a judgment lien?
where a DR defaults on an unsecured debt and the UCR obtains a judgment for the amount of the loan from state court, UCR then dockets this judgment in the county where DR has property, and this docketing creates a lien, which the UCR can now enforce against DR (and can collect deficiency if amount left over after selling the collateral)
what are the 2 types of unsecured creditors?
- priority unsecured creditors
2. non-priority unsecured creditors
what is the priority scheme?
SCR > priority unsecured creditors > non-prority unsecured creditors
