Chapter 7 Bankruptcy Proceedings

Question 1

Exemptions allowed under Federal Bankruptcy Code include

Answer 1

Some equity in motor vehicle/books tools of ones trade

Various sources of income (Unemployment compensation)

Question 2

A trustee in bankruptcy

Answer 2

has the power to employ court approved professionals (accountants, attorneys) to handle estate matters that require expertise

Question 3

Professionals in a bankruptcy case

Answer 3

has the right to be reimbursed for their services

Question 4

Preferential transfers

Answer 4

are payments made to a creditor for more than they would receive under Chapter 7 liquidation proceeding for the antecedent debt.

Question 5

Exceptions to Preferential transfers are

Answer 5

payments made in the ordinary course of business

Question 6

A trustee may

Answer 6

set aside preferential transfers made to a creditor within 90 prior to filing the petition

Determine if the debtor was insolvent when the transfer was made

Question 7

An exception to the trustee’s power to avoid preferential transfer is

Answer 7

contemporaneous exchange (put one creditor in better position than other creditors)

Question 8

If a Preferential transfer was made to an insider (officer, director, controlling stockholder)

Answer 8

The 90 days limit is extended to 1 year.