Chapter 1

Question 1

which bankruptcy chapter is a straight liquidation?

Answer 1

chapter 7

Question 2

what is the DR’s objective in filing a chapter 7?

Answer 2

be free of debt and get fresh start

Question 3

what are the Ch 7 TT’s 3 main roles?

Answer 3

1. collect nonexempt property of the estate
2. liquidate such property
3. use proceeds to pay expenses and CR claims

Question 4

who usually files chapter 11’s?

Answer 4

businesses

Question 5

are individuals eligible for chapter 11’s?

Answer 5

yes but they are expensive which is why they are usually filed by businesses

Question 6

does a chapter 11 BK usually have a TT?

Answer 6

no, there is usually a DR in possession

Question 7

what is the philosophy behind a chapter 12 and a chapter 13?

Answer 7

balance forgiveness of the debt w/ repayment of the debt

Question 8

who is eligible for chapter 12?

Answer 8

family farmers or fishermen

Question 9

which bankruptcy is for individuals only?

Answer 9

chapter 13

Question 10

does a chapter 13 have a TT or debtor in possession?

Answer 10

standing TT

Question 11

what does the standing TT deal w/ in a chapter 13 in terms of the bankruptcy estate?

Answer 11

the earnings of the DR

Question 12

who does bankruptcy in general largely focus on?

Answer 12

the consumer

Question 13

which bankruptcy features the fresh start policy?

Answer 13

chapter 7

Question 14

T/F: everyone is eligible for a fresh start under chapter 7

Answer 14

false; means test under which a can pay DR must file chapter 13

Question 15

in the very beginning, what happens immediately upon filing BK?

Answer 15

the automatic stay

Question 16

what section discusses the automatic stay?

Answer 16

362

Question 17

what affects the scope of the automatic stay?

Answer 17

what constitutes property of the estate

Question 18

what happens at the meeting of creditors?

Answer 18

the creditors examine the DR about his/her debts

Question 19

is the DR required to attend the meeting of creditors?

Answer 19

yes

Question 20

what is a proof of claim?

Answer 20

A written statement setting forth a CR’s claim that is usually filed by the CR

Question 21

generally speaking, what type of claim can be paid by the BK estate?

Answer 21

an allowed claim

Question 22

what does it mean to say a claim is allowed?

Answer 22

it means that the claim will be paid b/c the BK court recognized the claim is valid in the amount claimed

Question 23

in general, what is the role of a TT?

Answer 23

represent creditors as a group

Question 24

which part of the constitution limits BK law?

Answer 24

the DP clause

Question 25

what is a judgment lien?

Answer 25

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)

Question 26

what are the 2 types of unsecured creditors?

Answer 26

1. priority unsecured creditors

2. non-priority unsecured creditors

Question 27

what is the priority scheme?

Answer 27

SCR > priority unsecured creditors > non-prority unsecured creditors