LAS 261 - Week 2 Notes - Test 1

Question 1

The person who is filing for bankruptcy is the (1)–NOT the (2).

Answer 1

1. debtor

2. bankrupct

Question 2

A debtor is defined as a (1) or (2), which are two separate entities

Answer 2

1. person

2. municipality

Question 3

A person can be a (1), (2) or (3)

Answer 3

1. individual
2. partnership
3. corporation

Question 4

A person cannot be a debtor under the Bankruptcy Code unless he (1), (2), (3) or (4) in the United States.

Answer 4

1. resides
2. has a domicile
3. place of business
4. property

Question 5

An individual/family farmer cannot be a debtor under the BK Code if he or she has been a debtor in a case pending under the Bankruptcy Code in the preceding (1) days IF: (2) or (3)

Answer 5

1. 180 days
2. the case was administratively dismissed (willful failure to abide by court order or to appear)
3. the case was voluntarily dismissed by the debtor after filing of relief from auto-stay

Question 6

An individual may not be a debtor unless he has received from an instruction from an (1) withint (2) prior to filing. This is a requirement of the (3) and it can be done (4)

Answer 6

1. approved nonprofit budget and credit counseling agency
2. 180 days
3. 2005 BAPCPA
4. online

Question 7

The debtor’s attorney will first determine whether there are (1).

Answer 7

1. alternatives to bankruptcy.

Question 8

4 things the debtor’s attorney will do (if no viable alternatives exist to BK)

Answer 8

1. gather info to file the necessary documents
2. supervise his paralegal
3. file motions as needed
4. represent the debtor at proceedings (including 341 meeting of creditors)

Question 9

3 things the paralegal’s role depends on

Answer 9

1. law firm
2. paralegal’s training and expeirence
3. the client involved

Question 10

2 things the paralegal cannot do

Answer 10

1. advise the client

2. represent the client in judicial proceedings

Question 11

5things the paralegal may do

Answer 11

1. interview the client
2. investiage (pending lawsuits, previous BK cases, liabilities, where lived for the sake of jurisdiction)
3. perform factual and legal research
4. draft documents under the attorney’s supervision (inc. petition, schedules of assets and liabilities, SOFA)
5. brief the client (including that they MUST disclose EVERYTHING! All creditors!)

Question 12

The term of debt relief agency was created by (1). It includes any (2) who provides (3) in return for (4). An (5) is a debt relief agency and must (6). A (7) is not a debt relief agency.

Answer 12

1. 2005 BAPCPA
2. person
3. bankruptcy assistance
4. payment
5. attorney
6. disclose all fees
7. paralegal

Question 13

A bankruptcy petition preparer is a person other than the (1) or (2) who prepares (3) for (4) for (5). He may perform only (6) and may not give (7) and can receive a (8) or worse if it involves intentional fraud/lack of disclosure. Failure to comply with a court order can result in (9)

Answer 13

1. debtor’s attorney
2. someone acting under the supervision of the debtor’s attorney
3. documents
4. compensation
5. filing
6. typing services
7. legal advice
8. $500 penalty
9. license revocation

Question 14

3 basic types of claims a creditor can hold

Answer 14

1. secured claim
2. unsecured priority claim
3. unsecured nonpriority claim

Question 15

Creditors holding a secured claim have a security interest in (1), (2) or (3). The security claim gives the creditor the right to (4). BK stops that process, but a (5) is very common and can get around it.

Answer 15

1. real property
2. personal property
3. fixtures
4. repossess collateral if the debtor defaults
5. Motion for Relief from Automatic Stay

Question 16

3 main categories of unsecured claims (not priority) + (4) the major type of this

Answer 16

1. not secured by collateral
2. balance of a claim after the value of the collateral is deducted from the claim
3. claims that do not qualify as unsecured priority claims
4. credit card debt

Question 17

10 categories of unsecured priority claims (in order of priority)

Answer 17

1. domestic-support obligations (#1 as of BAPCPA)
2. administrative (attorney) expenses
3. extension of credit in an involuntary case
4. wages, salaries, commissions
5. contributions to employee benefit plans
6. certain farmer and fishermen
7. deposits by individuals
8. taxes owed to governmental units
9. commitments to maintain the capital of an insured depository institution (FDIC)
10. personal injury and death claims (impaired driver)

Question 18

Of the “wages, salaries and commissions” unsecured priority claim, this is for a (1). The portion that is priority is wages within (2) of the filing up to (3). Many debtors file strategically so that (4)

Answer 18

1. corporate debtro
2. 180 days
3. 12,475
4. payday is not affected

Question 19

5 other parties in interest (besides creditors)

Answer 19

1. equity security holders
2. indenture trustees
3. statutory lienholders
   4 lessors
4. governmental regulatory authorities

Question 20

7 other character ins the bankruptcy process

Answer 20

1. Administrative Office of the United States Courts (administers the bankruptcy administrators)
2. Bankruptcy Judge/staff
3. Office of Clerk of BK Court
4. United States Trustee/case trustees and examiners (the U.S. Trustee program is administered by the Department of Justice)
5. bankruptcy administrators instead of US Trustees (North Carolina and Alabama) (similar job)

Question 21

Case trustees are automatically appointed in Chapters (1), (2), (3) and are often not paid (as with no-asset cases). Chapter (4) uses private trustees instead who are lawyers posing as trustees.

Answer 21

1. 7
2. 9
3. 13
4. 11