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
Patent
Infringement
Anyone without permission makes , uses or sells an patent invention
Patent
Remedies
- Injunctive
- Damages
- Treble damages
- Attorneys
- Cost
Freehold estates
Fee estates
Right to possession for indefinite time
Freehold estates
Few simple
Absolute ownership of property
Freehold estates
Qualified fee
Ownership taken away upon happening of an event
Freehold estates
Life estate
Ownership for the life of a designated person
What do they call the person who gets the proper of a life estate ?
A remainder
Freehold estates
Future interest
Reversion
When A transfer life estate to B. In the future land goes back to A.
Freehold estates
Future interest
Remainders
Obtain land after persons interest is no longer in effect
Leasehold estates
Lease
- Contract for use and possession
2. Grant of estate in land
Leasehold estates
Landlord
Owner of land who retains a reversion interest
Leasehold estates
Tenant
Possessor of the leasehold interest in the land
Duration of lease
Definite term
Automatically expires at end of term
Duration of lease
Periodic tenancy
Specific term that continue and in indefinite secession
Duration of lease
Tenancy at will
Lease terminable at any time
Duration of lease
Tenancy of sufferance
Possession of property without a lease
Month to month basis
Duration of lease
Holdover tenancy
Please has expired tenant remains on the premises
Transfer of tenants interest
Assignment
Transfer of all the tenants interest and has no more obligations to the landlord
Transfer of tenants interest
Sublease
Transfer of less than all tenants interest and remains to the landlord
Concurrent ownership
Owned property with others
Concurrent ownership
Tenancy in common
Co-ownership we are tenants homes an undivided interest with no rights of survivorship
Undivided interest- each tenant own property
No rights of survivorship- when one tenant dies his interest is not go to the other tenants
Concurrent ownership
Joint tenancy
Co-ownership each tenant holds divided interest with the rights of survivorship
Concurrent ownership
Tenant by entireties
Co-ownership by spouses where neither conveys interest during life
Concurrent ownership
Condominium
Separate ownership in a unit where tenancy in common with respect to common areas
Concurrent ownership
Cooperative
Corporate owner leases units to shareholders as tenants
Non possessory interest
Easement
Limited right to use land of another in a specified Manor
Non possessory interest
Profit A’prendre
Right to remove produce from the land of another
Produce - agriculture products
Non possessory interest
License
Permission to use land of another
Contract of sale
Formation
Contracts to transfer land must be in writing to be enforceable
Contract of sale
Marketable title
Setter must transfer marketable title that is a title free from defects or encumbrances
Contract of sale
Common-law rule
Seller is not liable for any undiscovered defects
What should the buyer do to protect himself?
Must hire a title company that will discovered all unpaid loan and the building engineer
Contract of sale
Implied warranty of habitability
Builder /seller promises house has no major defects
Deeds
Document transferring any type of interest in land
Types of deeds
Warranty deed
Bargain and sale deed
Quit claim deed
Deeds
Warranty deed
The grantor promises she has bad the title to the property
Promises that the ownership is yours
Deeds
Bargain and sale deed
Grantor implies to have interest in property but offers no warranties of title to the grantee
Deeds
Quit claim deed
Seller transfers interest that she has in the property
used and transfer that are not sales
Recordation
Protect the buyers interest against third parties
And delivery of the to the appropriate recorders office
Secured transactions
Takes out a loan it’s called a mortgage. Signs security agreement and if buyer defaults lender has a right to ask for property
Adverse possession
Acquisition of title (open)without hiding, (continuous)without break in occupancy and (adversely occupancy) occupying land without permission from the owner
What is the prescribed period Of adverse possession
10 years
Public and private control of property
Zoning
Power of government to dictate types of activity in private property
Public and private control of property
Eminent domain
Power of government to take private land for public use with compensation
Public and private control of property
Restrictive covenant
Restrictions placed on the buyer by seller in relations to how the land can be used
Trust
Title to property held by one or more parties for use of enjoyment
Who is the person who creates the trust
Settlor
Types of trust
Express trust
testamentary trust
inter vivos trust
implied trust
Express trust
Trust established by voluntary action usually in writing or oral
Testamentary trust
Naturist in a will that becomes effective after death
Inter vivos trust
Trust established during the settlers lifetime
Implied trust
Created by operation of law
Implied trust
Constructive trust
Trust to rectify fraud prevent unjust enrichment
Termination of a trust
Just cannot be terminated unless instrument says it can
Wills
A written instrument executed by statute after a person dies to disturb you their property
What are the three things a will must have to be nonvoidable
- writing
- signed
- attested by witnesses
Testament Terry capacity
The testator must be sufficiently competent to intend document
Conduct and validating a will
A will that is the product of duress, undue influence or fraud
Revocation of a will
The will is no longer in effect
Bankruptcy cause
Debtor owe more than he earns
The will can be revoked by the ?
By testator under operation of law
Revocation
Destruction or alteration
Revokes a will
Revocation
Codicil
Addition to or revision of will
Revocation
Marriage
Revokes a will executed before marriage
Revocation
Birth of a child
Revokes a will as far as child is concerned
Revocation
Renunciation by surviving spouse
Spouse may elect under laws of decent
Intestate
Person who dies without a will
Course of decent
Property passes in equal share to each child after the widows rights have been settled
Administration of estate
Probate
Permission to carry out instructions in will. Gives permission in form of letters testamentary
Administration of estates
Executor
Person named in the will. Responsible of collecting assets and distributing
Administration of estates
Estate administration
Application to settle the estate of someone who died without a will. Court gives permission in form of letters of administration
Administration of estate
Administrator
Appointed by court when there is no will or person in will fails to qualify
