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LAS216 - Bankruptcy > LAS 261 - Week 3 Notes - Test 1 > Flashcards

LAS 261 - Week 3 Notes - Test 1 Flashcards

1
Q

American bankruptcy law is derived from (1). Power is vested in (2) to enact bankruptcy laws; this power was first exercised in (3). Before bankruptcy laws were in place, the penatly was (4). Not paying debts was considered (5) before 1700.

A
  1. English bankruptcy law
  2. Congress
  3. 1800
  4. debtor’s prison
  5. immoral
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2
Q

The Bankruptcy Act of 1800 was enacted in response to (1) caused by (2) in land, stock and script. It applied only to (3). It wasdue to (4) but was instead (5) before then.

A
  1. financial panics
  2. speculation
  3. merchants
  4. expires
  5. repealed
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3
Q

The Bankruptcy Reform Act of 1841 was enacted in response to (1) due to the (2) of 1837. It provided bankruptcy proceedings for (3) whose debts were less than (4). It was (5).

A
  1. poor economic conditions
  2. panic
  3. non-merchant debtors
  4. $2,000 (now 2 mil.)
  5. repealed
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4
Q

The Bankruptcy Act of 1867 was enacted after the (1) in response to an (2). It was the first one designed to be (3). It allowed for the filing of both (4) and (5). It was (6).

A
  1. Civil War
  2. economic crisis
  3. permanent
  4. volunary petitions
  5. involuntary petitions
  6. repealed
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5
Q

The Bankruptcy Act of 1898 is also know as the (1). It is divided into (2) and includes (3) as well as (4) petitions of both (5) and (6). This Act also saw the adoption of (7) and the creation of (8) with primary responsibility given to (9) who delegated the administration to (10) on case-by-case bases. This Act used the word (11) to descibe the creditors’ elected representative.

A
  1. “Act”
  2. 14 chapters
  3. voluntary
  4. involuntary
  5. merchant
  6. non-merchant debtors
  7. state exemptions
  8. Bankruptcy Courts
  9. District Court judges
  10. referee (BK-savvy lawyers)(became judges in 1973)
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6
Q

QUIZ: The Bankruptcy Reform Act of 1978 is commonly referred to as (1). It was originally divided into (2) with only (3).

A
  1. The “Code”
  2. 8 chapters
  3. odd numbers
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7
Q

QUIZ: Chapters 1, 2, and 3 are the (1) and they deal with (2), (3), (4), (5) and (6)

A
  1. Universal chapters (administrative)
  2. general provisions
  3. case administration
  4. debtor
  5. estate
  6. creditors
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8
Q

Federal judges serve for (1). Bankruptcy judges serve for (2).

A
  1. a lifetime

2. 14 years

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9
Q

QUIZ: Chapters 7, 9, 11, and 13 are the (1) and each deal with a different type of (2(

A
  1. operative chapters

2. bankruptcy case

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10
Q

QUIZ: Chapter 15 was the (1) and was moved to the (2) when it became permanent.

A
  1. pilot United States Trustee program

2. U.S.C.A.

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11
Q

QUIZ: Chapter 12 was created in an (1) and relates to (2)

A
  1. amendment to the Code (1986)

2. family farmers/fishermen

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12
Q

3 objectives of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

A

1 prevent individual debto abuse of the BK process by imposing stricter Chapter 7 eligibility standards (e.g., means test)

  1. eliminate the sunset provision for Chapter 12 + add fishers
  2. add Chapter 15
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13
Q

Chapter 15 is for (1) and pertains to (2)

A
  1. Ancillary/Cross-Border Cases

2. for companies incorporated outside the US but still doing substantial business in the US

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14
Q

2 ways bankruptcy is a remedy

A
  1. debtors - fresh start

2. creditors - equitable distribution from liquidated assets

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15
Q

2 objectives of the debtor

A
  1. to be discharged from as many debts as possible

2. to preserve ownership of as much property as free from debt as possible

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16
Q

3 objectives of the case trustee and creditors

A
  1. maximize distribution to creditors
  2. ensure debtor does not receive a discharge unless one is justified
  3. to make sure nondischargeable debts are not discharged
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17
Q

5 main reasons for individual bankruptcy filings

A
  1. catastrophic illness
  2. death in the family
  3. divorce
  4. unanticipated unemployment
  5. excessive credit card debt
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18
Q

7 common reasons for business bankruptcy filings

A
  1. obsolete products
  2. failure to compete
  3. mismanagement (of funds, etc,)
  4. sudden catastrophe
  5. insider disputes
  6. fraud
  7. a poor general economy
19
Q

Legal authority can be (1), which is mandatory or persuasive, or (2), which is useful in understanding primary authority1

A
  1. primary

2. secondary

20
Q

4 examples of sources of primary authority

A
  1. Federal/State Constitutions
  2. Federal/State statutes
  3. Federal/State administrative agency rules and regulations issued pursuant to statutory authority
  4. Federal/State case law
21
Q

Chapter 1 of the Bankruptcy Code is (1) and includes (2)

A
  1. general provisions

2. bankruptcy Code definitions

22
Q

Chapter 3 of the BK Code is (1) and regards (2), (3), (4) and (5)

A
  1. Case Administration
  2. commencement of a case
  3. officers
  4. administration
  5. administrative powers
23
Q

Chapter 5 of the BK Code is (1) and involves (2), (3), and (4)

A
  1. Creditors, Debtors and the Estate
  2. Creditors and claims
  3. debtors’ duties and benefits
  4. the estate (created by filing the petition)
24
Q

Chapter 7 of the BK Code is (1) and is available to (2) and (3). This is the majority of filings. This is the only operative chapter with no (4). A (5) is automatically appointed.

A
  1. liquidation
  2. individuals
  3. businesses (corporations)
  4. plan (straight liquidation/distribution)
  5. case trustee
25
Q

Chapter 9 of the BK Code is (1)

A
  1. Adjustment of Debts of a Municipality
26
Q

Chapter 11 of the BK Code is (1). There is no (2) automatically appointed and if there isn’t, there is a (3). This chapter is ususally used by (4) but is also for (5). This chapter allows the debtor to (6) or (7).

A
  1. Reorganization
  2. trustee
  3. debtor in possession (DIP)
  4. businesses
  5. individuals who exceed the Chapter 7/13 debt limit
  6. reorganize
  7. liquidate
27
Q

Chapter 12 of the BK Code is (1). It was added in (2).

A
  1. Adjustment of Debts of a Family Farmer or Fisher with Regular Annual Income
  2. 2005
28
Q

Chapter 13 of te BK Code is (1). It is available only to (2), which includes (3). It requires the formation of a (4). The regular income can be things other than (5).

A
  1. Adjustment of Debts of an Individual with Regular Income
  2. individuals (+spouses)
  3. sole proprietorships
  4. 3-5 year plan
  5. wages (trusts, etc. are ok)
29
Q

Chapter 15 is (1). It was added in (2).

A
  1. Ancillary and Other Cross-Border Cases

2. 2005

30
Q

(1) cannot file bankruptcy–only municipalities such as (2), (3) or (4) can.

A
  1. States
  2. cities
  3. towns
  4. counties
31
Q

The (1) are based on Rules of Civil Procedure. They are issued by the (2), are (3) authority, and apply to (4)

A
  1. Federal Rules of Bankruptcy Procedure
  2. US Supreme Court
  3. primary
  4. all jurisdictions
32
Q

QUIZ: Part I of the FRBP involves (1), (2) and (3)

A
  1. commencement of the case
  2. proceedings related to the petition
  3. Order for Relief (aka Petition, which creates automatic stay)
33
Q

QUIZ: Part II of the FRBP involves (1), (2), (3), (4), (5), (6), (7)

A
  1. Officers and Administration
  2. Notices
  3. Meetings
  4. Examinations (prelim. Evidentiary hearings, depos)
  5. Elections
  6. Attorneys (fees)
  7. Accountants
34
Q

Part III of the FRBP involves (1) and (2)

A
  1. Claims and Distribution to Creditors and Equity Interest Holders
  2. Plans (except for Chapter 7)
35
Q

Part IV of the FRBP involves (1) and (2)

A
  1. Debtors’ duties (attend 341 meeting or case auto-dismissed)
  2. Debtors’ benefits
36
Q

Part V of the FRBP involves (1)

A
  1. BK Courts and Clerks
37
Q

Part VI of the FRBP involves (1)

A
  1. Collection and Liquidation of the Estate
38
Q

Part VIIof the FRBP involves (1), which follow the (2) and apply to (3). These have a (4) form the bankruptcy case and are commenced by (5). If instead it is part of the bankruptcy, this is called a (6) and is commeced by (7).

A
  1. Adversary proceedings
  2. Federal Rules of Civil Procedure
  3. lawsuits in bankruptcy court
  4. separate number
  5. complaint
  6. contested matter
  7. motion
39
Q

Part VIII of the FRBP involves (1) which are (2), but one can elect to have the (3) hear it. A BK Appellate Panel consists of (4)

A
  1. Appeals
  2. automatically deferred to Bankruptcy Appellate Panel
  3. District Cour
  4. 3 BK judges from the 9th circuit
40
Q

Official BK Forms are prescribed by the (1) and revised periodically. They are located at (2) and include (3).

A
  1. Judicial Conference of the United States
  2. www.uscourts.gov
  3. instructions
41
Q

Many DCs have adopted (1) concerning bankruptcy cases and proceedings, which include (2) and (3) and (4). Each BK Court has its own rules.

A
  1. local rules
  2. referral of cases (between DC and BK Court)
  3. review of BK Court decisions and appeals
  4. Judges’ procedures (each is different)
42
Q

The vast majority of BK case law is from the (1)

A
  1. federal courts
43
Q

8 examples of secondary authority

A
  1. Legislative history
  2. digests
  3. loose-leaf services
  4. treatises
  5. legal periodicals
  6. ALR
  7. Legal encyclos
  8. Internet resources

LAS216 - Bankruptcy (6 decks)

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