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bankruptcy > Final Exam > Flashcards

Final Exam Flashcards

1
Q

a deed instrument in which a mortgagor conveys all interest in a real property to the mortgagee to satisfy a loan that is in default and avoid foreclosure proceedings

A

Deed-in-lieu of Foreclosure

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2
Q

mandatory counseling to provide basic education on financial management and help the creditor avoid bankruptcy

A

Credit Counseling Requirement

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3
Q

Execution

A

the carrying out of some act or course of conduct to its completion

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4
Q

the deadline set for creditors in a case to file proof of claims. Claims not filed by the bar date may be disallowed or subordinated to other claims

A

Claims Bar Date

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5
Q

When would a court consider appointing a trustee instead of having a debtor-in-possession?

A

The court would appoint a trustee if the debtor has previous fraud, if it is in the interest of the creditors, or as an alternative to converting to a Chapter 7 liquidation case

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6
Q

a loan that is not protected by collateral

A

Unsecured Debt

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7
Q

where two or more bankruptcy cases involving affiliated debtors are ordered to be administered jointly to save administrative costs

A

Joint Administration

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8
Q

three-party contingent liability agreement under which a third-party agrees to be directly or collaterally responsible for the obligation of a first-party to a second-party in case the first-party defaults

A

Guaranty Agreement

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9
Q

Liquidation Proceeding

A

proceeding in which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor’s creditors in satisfaction of their claims

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10
Q

What does a Chapter 13 case do?

A

Reorganizes and adjusts debt

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11
Q

What does a Chapter 9 do?

A

Adjusts debts for a municipality

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12
Q

something pledged as security for repayment of a loan, to be forfeited in the event of a default

A

Collateral

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13
Q

Unsecured Debt

A

a loan that is not protected by collateral

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14
Q

an agreement between a lender and a borrower to give the property to a neutral third party who will serve as a trustee

A

Deed of Trust

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15
Q

additional steps required to be taken in relation to a security interest in order to make it effective against third parties or to retain its effectiveness in the event of default by the grantor of the security interest

A

Perfection

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16
Q

bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code

A

Chapter 7

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17
Q

Purchase Money Security

A

security interest or claim on property that enables a lender who provides financing for the acquisition of goods or equipment to obtain priority ranking ahead of other secured creditors

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18
Q

What is the liquidation test or best interests of the creditors test in reorganization proceedings and how does it work?

A

It is one of thirteen requirements that a plan proponent must satisfy in order to obtain confirmation of its plan of reorganization, guaranteeing that unless it otherwise agrees, each creditor or interest holder will receive at least as much under the plan as it would in a liquidation of the debtor in a chapter 7 case.

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19
Q

a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s)

A

Meeting of Creditors

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20
Q

What is a cramdown/modification of a secured debt?

A

A cramdown can lower the loan balance secured by the collateral and a reduction in the interest rate to be paid

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21
Q

a document filed in a specialized federal court to commence a proceeding to provide a means by which a debtor who is unwilling or financially unable to pay personal debts will satisfy the claims of his or her creditors as they come due

A

Petition

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22
Q

a right to keep possession of property belonging to another person until a debt owed by that person is discharged

A

Lien

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23
Q

an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full

A

Deficiency Judgment

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24
Q

Promissory Note

A

a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand

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25
Q

agreement with a creditor to pay the creditor a debt that could have been discharged in bankruptcy

A

Reaffirm Debt

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26
Q

an unsecured claim entitled to a certain order of preferment and payment under section 507

A

Priority Claims

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27
Q

the writing that a creditor submits as evidence of its claim against the estate

A

Proof of Claim

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28
Q

a document that provides a lender a security interest in a specified asset or property that is pledged as collateral

A

Security Agreement

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29
Q

a court order directing that money or property of a third party be seized to satisfy a debt owed by a debtor to a plaintiff creditor

A

Garnishment

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30
Q

a person appointed by the United States Trustee, an officer of Department of Justice, to represent the debtor’s estate in a bankruptcy proceeding

A

Bankruptcy Trustee

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31
Q

the order in which a debtor should pay an unsecured claim

A

Priority

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32
Q

Priority

A

the order in which a debtor should pay an unsecured claim

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33
Q

Writ of Fieri Facias

A

a writ of execution after judgment obtained in a legal action for debt or damages for the sheriff to levy on goods of the judgment debtor

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34
Q

Insolvency

A

An incapacity to pay debts upon the date when they become due in the ordinary course of business

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35
Q

Judicial lien

A

lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding

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36
Q

Debtor

A

person liable for a debt

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37
Q

Balloon Note

A

a name given to a promissory note in which repayment involves a balloon payment

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38
Q

An incapacity to pay debts upon the date when they become due in the ordinary course of business

A

Insolvency

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39
Q

Perfection

A

additional steps required to be taken in relation to a security interest in order to make it effective against third parties or to retain its effectiveness in the event of default by the grantor of the security interest

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40
Q

a bankruptcy case in which the debtor is an individual with primarily consumer debts

A

Consumer Bankruptcy Case

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41
Q

Meeting of Creditors

A

a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s)

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42
Q

Consolidation

A

the joining together of two or more bankruptcy cases involving interrelated debtors into one case for joint administration

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43
Q

Proof of Claim

A

the writing that a creditor submits as evidence of its claim against the estate

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44
Q

person liable for a debt

A

Debtor

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45
Q

Petition

A

a document filed in a specialized federal court to commence a proceeding to provide a means by which a debtor who is unwilling or financially unable to pay personal debts will satisfy the claims of his or her creditors as they come due

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46
Q

the rearrangement of a debtor’s finances under a court-approved plan as an alternative to liquidation

A

Reorganization Proceeding

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47
Q

Fair Debt Collection Practice Act; FDCPA regulates debt collectors

A

What is the FDCPA and what type of conduct does it govern?

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48
Q

Lien

A

a right to keep possession of property belonging to another person until a debt owed by that person is discharged

49
Q

Collateral

A

something pledged as security for repayment of a loan, to be forfeited in the event of a default

50
Q

What does FDCPA mean?

A

Fair Debt Collection Practices Act

51
Q

Mechanic’s/Materialman’s Lien

A

security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property

52
Q

a loan that is guaranteed by collateral

A

Secured Debt

53
Q

Reorganization Proceeding

A

the rearrangement of a debtor’s finances under a court-approved plan as an alternative to liquidation

54
Q

Mortgage

A

The consensual security interest in real property granted by a debtor to a creditor that entitles the creditor upon default to take possession of and sell the realty and apply the proceeds to the balance owed

55
Q

Short Sale

A

a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property

56
Q

What does a Chapter 12 do?

A

Reorganizes debt for farmers or fisherman with regular annual income

57
Q

a source or amount of income exempted from taxation

A

Exemption

58
Q

Credit Counseling Requirement

A

mandatory counseling to provide basic education on financial management and help the creditor avoid bankruptcy

59
Q

Guaranty Agreement

A

three-party contingent liability agreement under which a third-party agrees to be directly or collaterally responsible for the obligation of a first-party to a second-party in case the first-party defaults

60
Q

Priority Claims

A

an unsecured claim entitled to a certain order of preferment and payment under section 507

61
Q

Deficiency Judgment

A

an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full

62
Q

Chapter 7

A

bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code

63
Q

Disinterested Person

A

person that is not a creditor

64
Q

proceeding in which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor’s creditors in satisfaction of their claims

A

Liquidation Proceeding

65
Q

enforceable claim or lien created by a security agreement, or by the operation of law, that secures the fulfillment of a pledge

A

Security Interest

66
Q

What is the purpose, terms and application for the means test?

A

The purpose of the means test is to see if the debtor makes under the state median income for the family size and to see if they need to file a Chapter 13 instead

67
Q

What does a Chapter 11 do?

A

Reorganizes or liquidates for businesses

68
Q

Security Agreement

A

a document that provides a lender a security interest in a specified asset or property that is pledged as collateral

69
Q

Bankruptcy Trustee

A

a person appointed by the United States Trustee, an officer of Department of Justice, to represent the debtor’s estate in a bankruptcy proceeding

70
Q

Consumer Bankruptcy Case

A

a bankruptcy case in which the debtor is an individual with primarily consumer debts

71
Q

a mortgage or other charge on property or assets

A

Encumbrance

72
Q

Why is there a Chapter 11 debtor-in-possession?

A

There is a debtor-in-possession for chapter 11 because a business has a lot of inventory and assets that have to be gone through in a certain amount of time

73
Q

lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding

A

Judicial lien

74
Q

Repossession

A

the action of retaking possession of something, in particular when a buyer defaults on payments

75
Q

Foreclosure

A

the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments

76
Q

What is a Chapter 11 debtor-in-possession?

A

The legal status given a debtor filing a Chapter 11 and the debtor retains possession and control of its assets while reorganizing as well as the right to continue operating the business

77
Q

the prohibition on creditors continuing collection efforts against a debtor that arises automatically upon the debtor’s filing of a bankruptcy petition

A

Automatic Stay

78
Q

Surrender

A

the act of relinquishing property to another

79
Q

Security Interest

A

enforceable claim or lien created by a security agreement, or by the operation of law, that secures the fulfillment of a pledge

80
Q

What is the applicable commitment period for a Chapter 13 debtor and what decides which commitment period governs?

A

The commitment period is 3-5 years and the debtor must complete the Official Form 122C-1 to determine the applicable commitment period

81
Q

Reaffirm Debt

A

agreement with a creditor to pay the creditor a debt that could have been discharged in bankruptcy

82
Q

a chapter 7 liquidation case in which there are no assets available for distribution to creditors

A

No-asset Case

83
Q

security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property

A

Mechanic’s/Materialman’s Lien

84
Q

Discharge

A

release from the payment of debts by a person who is bankrupt

85
Q

security interest or claim on property that enables a lender who provides financing for the acquisition of goods or equipment to obtain priority ranking ahead of other secured creditors

A

Purchase Money Security

86
Q

a name given to a promissory note in which repayment involves a balloon payment

A

Balloon Note

87
Q

Exemption

A

a source or amount of income exempted from taxation

88
Q

the carrying out of some act or course of conduct to its completion

A

Execution

89
Q

an amount of credit extended to a borrower

A

Line of Credit

90
Q

Joint Administration

A

where two or more bankruptcy cases involving affiliated debtors are ordered to be administered jointly to save administrative costs

91
Q

Line of Credit

A

an amount of credit extended to a borrower

92
Q

Business Bankruptcy Case

A

a bankruptcy case in which the debtor is an entity or individual with primarily business debts

93
Q

a debtor’s right to buy back property that has been repossessed or foreclosed on

A

Redeem Property

94
Q

The consensual security interest in real property granted by a debtor to a creditor that entitles the creditor upon default to take possession of and sell the realty and apply the proceeds to the balance owed

A

Mortgage

95
Q

person that is not a creditor

A

Disinterested Person

96
Q

Encumbrance

A

a mortgage or other charge on property or assets

97
Q

Deed of Trust

A

an agreement between a lender and a borrower to give the property to a neutral third party who will serve as a trustee

98
Q

appointed official in federal districts responsible for appointment and supervision of bankruptcy trustees and general oversight of bankruptcy cases in that district

A

U.S. Trustee

99
Q

Claims Bar Date

A

the deadline set for creditors in a case to file proof of claims. Claims not filed by the bar date may be disallowed or subordinated to other claims

100
Q

the action of retaking possession of something, in particular when a buyer defaults on payments

A

Repossession

101
Q

the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments

A

Foreclosure

102
Q

Deed-in-lieu of Foreclosure

A

a deed instrument in which a mortgagor conveys all interest in a real property to the mortgagee to satisfy a loan that is in default and avoid foreclosure proceedings

103
Q

a bankruptcy case in which the debtor is an entity or individual with primarily business debts

A

Business Bankruptcy Case

104
Q

Automatic Stay

A

the prohibition on creditors continuing collection efforts against a debtor that arises automatically upon the debtor’s filing of a bankruptcy petition

105
Q

release from the payment of debts by a person who is bankrupt

A

Discharge

106
Q

No-asset Case

A

a chapter 7 liquidation case in which there are no assets available for distribution to creditors

107
Q

certain disputes defined by Bankruptcy Rule 7001 that arise in a bankruptcy case and are resolved by the procedures governing s formal lawsuit

A

Adversary Proceeding

108
Q

Secured Debt

A

a loan that is guaranteed by collateral

109
Q

a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property

A

Short Sale

110
Q

Liquidation proceeding and no asset cases

A

What is a Chapter 7 do?

111
Q

Garnishment

A

a court order directing that money or property of a third party be seized to satisfy a debt owed by a debtor to a plaintiff creditor

112
Q

Adversary Proceeding

A

certain disputes defined by Bankruptcy Rule 7001 that arise in a bankruptcy case and are resolved by the procedures governing s formal lawsuit

113
Q

a writ of execution after judgment obtained in a legal action for debt or damages for the sheriff to levy on goods of the judgment debtor

A

Writ of Fieri Facias

114
Q

a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand

A

Promissory Note

115
Q

What debts are not dischargeable?

A

tax debt, student loans, domestic support obligations, fines owed to govt, unlisted debts, debts from fraud, last minute purchace of luxury goods

116
Q

the joining together of two or more bankruptcy cases involving interrelated debtors into one case for joint administration

A

Consolidation

117
Q

Redeem Property

A

a debtor’s right to buy back property that has been repossessed or foreclosed on

118
Q

U.S. Trustee

A

appointed official in federal districts responsible for appointment and supervision of bankruptcy trustees and general oversight of bankruptcy cases in that district

119
Q

the act of relinquishing property to another

A

Surrender

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