Deck 31 Flashcards

1
Q

What chapters of bankruptcy may be voluntary or involuntary?

A

Chapter 7 or 11 (Ch. 13 is voluntary only)

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2
Q

What chapter of bankruptcy is voluntary only?

A

ch. 13

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3
Q

Under voluntary cases, who files?

A

The debtor files; automatic order for relief

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4
Q

Under involuntary cases, who files?

A

Unsecured creditor; does not constitute an order for relief

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5
Q

Who may petition a debtor involuntarily into bankruptcy? (Kind of creditor and amount)

A

Unsecured, undisputed debt; Creditors must owe at least $15,325

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6
Q

Power of fraudulent transfer

A

Trustee can set aside set aside fraudulent transfers made within 2 years of the filing date

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7
Q

Preferential payment in Bankruptcy is (purpose to prevent one creditor being preferred over other):

A

1) Transfer made to or for the benefit of a creditor; 2) on account for an antecedent debt; 3) made within 90 days of filing the petition; 4) creditor receives more than the creditor would have received under the bankruptcy code

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8
Q

Something not considered a preference

A

Payment to a fully secured creditor

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9
Q

What debts will not be discharged by a bankruptcy? (WAFTED)

A

Willful and malicious injury, Alimony, Fraud, Taxes, Educational Loans, and Debts undisclosed

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10
Q

Assets of an estate are distributed in the following order:

A

1) secured creditors; 2) priority creditors; and 3) general creditors who filed on time

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11
Q

Taxes that can be claimed as itemized deductions include:

A

Real estate tax, income tax, and personal property tax (ad valorem tax on car)

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12
Q

Education loan interest is what kind of adjustment?

A

Adjustment for AGI limited to $2500

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13
Q

Treatment for Municipal bond income

A

Not included in gross income

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14
Q

Statute of limitations for fraud or filing false tax returns

A

No limitation

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15
Q

Rights that a surety has against the principal debtor

A

Exoneration, subrogation (step into the shoes of the debtor), and reimbursement

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16
Q

Defenses of a Surety (CPRS)

A

Creditor acts in bad faith; payment and tender of payment; release of principal debtor; and surety’s incapacity or bankruptcy

17
Q

No defense situations for a surety

A

Principal’s fraud or duress upon surety; incapacity of principal; and bankruptcy of principal

18
Q

Creditors’ composition

A

Agreement between the debtor and at least 2 creditors that the debtor pays the creditors less than their full claims in full satisfaction of their claims

19
Q

Judicial lien

A

Property in the hands of the debtor

20
Q

Garnishment

A

Property in the hands of a third party