Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LAS216 - Bankruptcy > LAS 261 - Week 4 Notes - Test 1 > Flashcards

LAS 261 - Week 4 Notes - Test 1 Flashcards

1
Q

4 parts to initiating a BK for the debtor-client

A
  1. Information gathering
  2. Analysis
  3. Counseling
  4. Drafting
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

One piece of info to gather is who is the debtor? This means the (1) and will also require the (2) which is not e-filed. It also includes the debtor’s (3). There is no such thing as (4) in Arizona and (5) are not recognized.

A
  1. legal name
  2. social security
  3. spouse
  4. common law marriage
  5. gay marriages
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

More info to gather: Where does the debtor currently (1)? What is the debtor’s (2) situation?

A
  1. live

2. employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

It’s important to ask what caused the debtor’s (1), which will illuminate alternatives (chapter, etc.). Also important for alternatives is the debtor’s (2).

A
  1. financial difficulties

2. financial condition (income, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

More info to gather: What are the debtor’s (1) that are legally owned? Where are they (2). It is important to determine current (3) and even if the assets are in another state, they must be (4).

A
  1. assets
  2. located
  3. title
  4. disclosed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

It’s important to find out the creditors’ (1) and (2). Even if there is a (3) they must be disclosed, especially because they might (4). Relevant to creditors is whether the debtor has (5).

A
  1. names
  2. addresses
  3. $0 balance
  4. dispute the debt
  5. tried a non-bankruptcy workout (may open the door for negotiation)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

It’s important to find out whether the debtor is subject to pending (1) both in Arizona and elsewhere!

A
  1. lawsuits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Are the debts the (1)? Are they (2) on anyone else’s? What are the debtor’s (3) and (4)? How will (5) be paid?

A
  1. debtor’s debts
  2. co-signers
  3. goals
  4. expectations
  5. fees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

3 things the debtor’s attorney will do

A
  1. evaluate the info gathered
  2. consider altneratives to bankruptcy
  3. determine whether to recommend BK to the client & formulate a course of action
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

3 advantages to non-bankruptcy solutions

A
  1. can be less expensive
  2. better received by creditors
  3. less stigma
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

4 non-bankruptcy solutions

A
  1. negotiation
  2. consolidation loan
  3. credit counseling
  4. assignment for the benefit of creditors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Negotiation may involve discussions with the (1) or the (2) and the creditor whereby the creditor alters the (3). The debtor may receive an (4), a (5) or a combination of both. The debtor must be able to (6). A negotiated agreement is governed by (7)

A
  1. debtor
  2. debtor’s attorney
  3. terms of the original agreement
  4. extension of time
  5. debt reduction
  6. make some payment towards the debt
  7. contract law
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

3 features of a consolidated loan

A
  1. does not lower the total debt
  2. reduces the number of payments a debtor makes each month
  3. may take longer to pay off and be at a higher interest rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Credit counseling centers analyze the debtor’s (1) and negotiate with creditors for a (2) the debtor can handle, which is usually (3). They do not (4)–they (5)

A
  1. obligations
  2. payment schedule
  3. less than what is owed
  4. lend money
  5. distribute the debtor’s money to creditors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Assignment for the benefit of creditors is used by (1) in both Chapter (2) and (3) cases. It involves transfer of assets to a (4) to ensure (5). It gives creditors a higher (6) than liquidation and avoids (7). It is covered by (8).

A
  1. businesses
  2. 7
  3. 11
  4. third party
  5. payment of obligations
  6. return
  7. bankruptcy
  8. state statute
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

(1) is the most popular bankruptcy

A
  1. Chapter 7
17
Q

(1) cannot file Chapter 7 Bankruptcy

A

Railroads

18
Q

A trustee is (1) to all Chapter 7 cases and distributes assets according to the (2). Debtors receive a (3) from their (4) debts. Corporations and partnerships (5). Trustees may choose to (6) certain property, such as timeshares

A
  1. auto-appointed
  2. Bankruptcy Code
  3. discharge
  4. dischargeable debts
  5. go out of business
  6. abandon
19
Q

Chapter 9 is limited to municipalities–(1), (2) or (3). It is not available to (4).

A
  1. political subdivisions
  2. public agencies (school districts, credit unions
  3. instrumentalities of the state
  4. states
20
Q

Chapter 11 is generally filed by (1) but can be used by (2). (3) can file this (unlike Ch. 11). It requires a (4). There is no (5) of a trustee and the debtor remains a (6). A trustee may be appointed if the (7).

A
  1. businesses
  2. individuals who exceed the Ch. 13 limit
  3. Railroads
  4. reorganization plan
  5. automatic appointment
  6. debtor-in-possession
  7. court appoins one (fraud, etc.)
21
Q

Chapter 12 is for (1), which requires the person to have a certain percentage of the debtor’s income (2). This one also requires a (3).

A
  1. Adjustment of Debts of Family Farmer or Family Fisher with Regular Annual Income
  2. come from fishing or farming
  3. plan
22
Q

Chapter 13 is (1). It requires the debtor to be a (2). A (3) is required in this one and debtors/debtor attorneys may negotiate with (4). The (5) distributes according to the plan.

A
  1. Adjustment of Debts of Individual with Regular Income
  2. individual (+spouse, or sole proprietor)
  3. 3-5 year plan
  4. secured creditors (unsecured creditors may get nothing)
  5. trustee
23
Q

Chapter 15 is (1). It is for (2) who do (3), and it is required that the debtor have (4). It incorporates the (5) into the BK Code. This chapter permits a (6) to seek discovery concerning a debtor’s assets, affairs, rights, obligations and liabilities.

A
  1. Ancillary and Other Cross-Border Claims
  2. foreign companies
  3. substantial business in the US
  4. filed for BK in their own country
  5. Model Law on Cross- Border Insolvency
  6. foreign representative
24
Q

Dollar amount increases happen every (1) and are done by the (2)

A
  1. 3 years

2. Administrative Office of the US Courts

25
Q

The counseling session provides an opportunity to (1). The attorney (2), (3) and (4) and should discuss (5) again.

A
  1. gather invormation from the client
  2. reviews with the client the info received
  3. reocommends whether or not to file for BK
  4. gains the debtor’s assent to the recommendations
  5. attorney fees
26
Q

After drafting BK docs, to avoid errors, (1).

A
  1. the client should be present and given ample time to review and approve the docs
27
Q

3 situations in which a creditor may need attorney representation

A
  1. the debtor has not filed for BK (still room for negotiation, try to get the creditor paid)
  2. the debtor has file a voluntary BK petition
  3. creditors have file an involuntary BK petition against the debtor
28
Q

4 steps the representing the creditor

A
  1. Information gathering
  2. Analysis
  3. Counseling
  4. Drafting
29
Q

5 causes of creditor stress

A
  1. creditor observes debtor losing money
  2. debtor is insolvent, regular businessrelationship is terminated
  3. Audits show deficiencies in the debtor’s financial situation
  4. increased administrative costs due to credit problems (attorney fees, staff time)
  5. psychological effect on staff due to credit problems (e.g., change in lending strategies)
30
Q

2 differences between creditor info gathering and debtor info gatherin

A
  1. creditor info gathering is more focused

2. if the creditor is a long-standing client, the attorney will already be in tune with the problem

31
Q

2 things that factor into the strategy a creditor’s attorney will employ

A
  1. what chapter the debtor filed

2. whether the crditor’s claim is secured or unsecured

32
Q

3 types of alternatives the creditor may employ if he debtor has not filed for BK

A
  1. private alternatives (work with debtor or other creditors)
  2. state court alternatives (garnishments, receivership, judgments, orders)
  3. involuntary BK alternatives (7, 11)
33
Q

A copy of everything drafted for a creditor-client should be (1)

A
  1. sent to the creditor-client
34
Q

If a second meeting with the creditor is necessary, the attorney will (1), (2), (3) and (4)

A
  1. review the info received from the creditor
  2. discuss the available alternatives
  3. make a recommedation on how to proceed
  4. gain the creditor’s assent
35
Q

3 alternatives a debtor has in an involuntary petition

A
  1. concede the petition and allow the order for relief to be entered under the chapter noted (will be converted to a voluntary petition)
  2. concede the petition and allow the order for relief to be entered under a different chapter
  3. contest the petition and assert available defenses

LAS216 - Bankruptcy (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions