Final Exam Flashcards
Bankruptcy purpose
Return debtor back to the position where he earns more than he owes
Chapter 3 case administration
How to file for bankruptcy
Debtor ask court for permission to file for bankruptcy
Chapter 3
Voluntary petition
Available to any debtor (on your own will)
Chapter 3
Involuntary petition
Filled only under chapter 7 or 11, if debtor is not paying bills
Chapter 3
Dismissal
Court may dismiss case for
Chapter 5
Creditor
Entity that has claim against debtor
Chapter 5
Creditor
Claim
A right to payment
Chapter 5
Creditor
Secured claim
Claim with lien on property, debtor defaults, creditor takes property to sell and get money back.ex. Mortgage
Chapter 5
Creditor
Unsecured claim
Claim with no lien on property, debtor defaults creditor loses everything. Ex. Credit cards
Chapter 5
Property of claims
Right of some claims to be paid before claims of lesser rank
Chapter 5
Debtor duties
debtor file specified information, cooperate and surrender all property
Make sure you include everything that you owe.
Chapter 5
Debtor exemptions
Certain assets are left out of the bankruptcy process for low or sentimental value ex. Wedding band or 50 dollar watch
Chapter 5
Discharge
Relief from liability unless those not dischargeable, ex. Taxes, student loans or child support
Chapter 5
The estate
Legal interest in nonexempt property. Estate sues for your property
Chapter 5
Voidable preferences
Invalidates transfer made before date of bankruptcy from the debtor to favored creditors
Chapter 5
Fraudulent transfers
Avoid transfers made on ore within a year of date of bankruptcy.
Transfer your money so you save it instead of paying back
Chapter 7- liquidation
Purpose
Sell qualified asset and distribute to creditors
Chapter 7- liquidation
Proceedings
Trustee takes possession of property and conducts the sale of qualified assets
Chapter 7- liquidation
Payment to creditor
Creditors who became creditors after bankruptcy file
Secured creditors
General creditors
Stockholders
Who is chapter 7 for?
Companies and individuals
Non asset liquidation?
An individual has no qualified assets to sell and walks away without paying his debt
How long does a liquidation take?
6 months
What happened to a company when they file for chapter 7?
Goes out of existence
Chapter 11
Purpose
Preserve or distressed entity
Keep a company in trouble
Chapter 11
Proceedings
Debtor remains in possession of property
Chapter 11
Plan
Must present to his creditors a plan that requires their approval, must show the increased come and decrease expenditure
Chapter 11
What is Chapter 11 bankruptcy for
For companies only
How long does chapter 11 take
It takes 3 to 5 years
Chapter 13 adjustment of individuals
Purpose
To permit individual to file a repayment plan
Disadvantage of bankruptcy
Stays for 10 years
Cannot apply for bankruptcy for another 7 years
Lowers credit score
Loans are difficult to obtain or have high interest rate.
Alternatives to bankruptcy
Composition
Agreement b/w debtor and two or more of creditors that each will take portion of his claim as full payment
Trade secrets
Valuable secret information
Trade secrets
Protection
May obtain damages, or injunctive relief when secret is wrongfully used by employee or competitors
Trade symbols
Mark that must be distinctive, not immoral deceptive or scandalous
Trade symbols
Infringement
Person without having authorization uses a indistinguishable mark that causes confusion mistake of deception
Trade symbols
Remedies
Injunctive relief, profits, damages my destruction or infringing articles, cost and attorney fees
Types of trade symbols
Trademark
Distinctive symbol or work to identify manufacture
Trade names
Name used to identify business vocation or occupation
Trade names
Protection
Infringement is prohibited
Trade names
Remedies
Damages and injunctions
Copy right
Anything that you write, for authors life plus 70 years
Copyrights
Procedure
Registration provides additional remedies
Copy right
Rights
- Reproduce copyrighted work
- Prepare derivative works (movie)
- Distribute copies
- Perform work publicly
Copyright
Ownership
Author is owner and may be transferred in whole or part
Copyright
Infringement
When someone exercises copyright without authorization
Patents
Right to an invention for twenty years for utility
And Plant patents - fourteen years
Renew patents every 20 years
Patents
Patent ability
- Novel
- Useful
- Not obvious
Patents procedure
Patents issued by US patent and Trademark office