Chapter 36 - Bankruptcy Law Flashcards
1
Q
Intent of Bankruptcy
A
- To give the debtor a fresh start.
2
Q
Constitutional Provision
A
- Federal Gov’t has power over writing bankruptcy law.
- Some things determined by the states.
3
Q
Bankruptcy Petition
A
- Where the bankruptcy starts.
4
Q
Voluntary
A
- Person files bankruptcy on their own.
5
Q
Involuntary
A
- Creditors can force the debtor into bankruptcy.
6
Q
Bankruptcy Estate
A
- Includes any assets the debtor owns non-exempt.
7
Q
Trustee
A
- Oversees the estate.
- Independent 3rd Party
- Job is to follow orders from the judge, sell assets, and collect money.
8
Q
Automatic Stay
A
- Once the bankruptcy is filed, creditors have to stop trying to collect from the debtor.
9
Q
Schedules
A
- Debtor lists all of the debtor’s assets, creditors, and how much is owed to creditors.
10
Q
Exemptions
A
- Debtor’s aggregate interest no toe exceed 21,625 in value as residence.
- 3450 a car
- 55- item or 115252 in household goods
- 1450 jewelry
11
Q
In re Richard E Jackson v. Angela J. Shelton
A
- Jackson & Shelton sued employer for getting fired and they settle with the employer ($80000.00 owed by er).
- They file for bankruptcy.
- Jackson & Shelton said it wasn’t part of the estate, but creditors said it was.
- Court said that nearly all of the money was included in the estate.
12
Q
Fraudulent Transfers
A
- If I’m going to file today, I get rid of all my property with the intent to get it back.
- Law says that the judge can repossess all the fraudulently transferred assets.
- Transfer property in contemplation of filing bankruptcy.
13
Q
Preferential Transfers
A
- A debtor pays certain creditors in full, but doesn’t pay other creditors at all.
- Not legal in contemplation of bankruptcy.
- Court has money come back into the estate & then pro-ration it among creditors.
14
Q
Priorities
A
- Debtor owes fed and state taxes, alimony and child support, mortgage. Who gets paid first?
- Fed law establishes the list.
- Debtor’s lawyer is paid first.
- Mortgage and Child Support before tax.
- Creditors are placed in priority of who gets paid.
15
Q
In re Longview Aluminum, LLC
A
- LLC in tough economic times.
- LLC on verge of bankruptcy.
- Transferred money in LLC to one owner.
- Creditors later said the transfer made to the owner should be in estate because it was a preferential estate.
- Court ruled it needed to be part of the estate because of timing.
