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LAS216 - Bankruptcy > LAS261 - Week 5-6 Notes - Test 2 (Chapter 7) > Flashcards

LAS261 - Week 5-6 Notes - Test 2 (Chapter 7) Flashcards

1
Q

Bankruptcy fraud automatically triggers the (1). Advise client not to (2).

A
  1. US Attorney’s Office

2. switch property within 1-2 years of BK, especially the last 90 days

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2
Q

Chapter 7: The paralegal may set up the (1), acquire a list of (2) (including relatives and friends–need names and addresses!) and initiate a (3). It’s important to make sure the attorney is not representing (4), and that )5)

A
  1. client file
  2. creditors
  3. conflict of interest check
  4. both sides
  5. the client doesn’t owe money to the attorney at discharge
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3
Q

The paralegal may inform an (1) debtor that within (2) days of filing the BK petition, the debto must be briefed by a (3)

A
  1. individual
  2. 180
  3. approved nonprofit budget and credit counseling agency
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4
Q

The paralegal may give the debtor a questionnaire so the debtor can itemize (1), (2), (3) and (4)

A
  1. assets
  2. liabilities
  3. monthly income
  4. monthly expenses
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5
Q

The paralegal may provide the debtor with a list of (1) to return to the paralegal. She may have a (2) run a report on the debtor. She may heck for (3), (4) and (5)

A
  1. document
  2. credit bureau
  3. tax liens
  4. judgments
  5. lawsuits
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6
Q

The atorney may advise the client (1) and (2)

A
  1. whether to file for BK

2. under which chapter

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7
Q

The attorney explains the (1) to the debtor, discusses (2), (3) and other provisions in the attorney-client contract.

A
  1. bankruptcy process
  2. fees
  3. costs
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8
Q

The paralegal, under the attorney’s supervision, completes the (1), the (2), (3) and (4)

A
  1. petition
  2. list of creditors
  3. statements
  4. schedules
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9
Q

The attorney and paralegal meet with the debtor so he can (1); then the paralegal (2) the appropriate documents

A
  1. review and sign the documents

2. electronically files

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10
Q

Must be given to an INDIVIDUAL debtor by the attorney BEFORE the petition is file

A

Notice to Individual Debtor with Primarily Consumer Debts

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11
Q

Document filed by debtors to commence the case

A

Voluntary Petition

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12
Q

2 documents that must be filed WITH the petition by an INDIVIDUAL debtor

A
  1. Statement of Social-Security Number or Individual Taxpayer-Identification Number (not electronically filed)
  2. Individual Debtor’s Statement of Compliance with the Credit Counseling Requirement
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13
Q

2 documents that must be filed WITH the petition by a CORPORATE debtor

A
  1. Corporate Resolution Authorizing the Filing of the Chapter 7 Petition
  2. Corporate Ownership Statement
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14
Q

3 docs that must be filed with the petition by ALL debtors

A
  1. Names and addresses of all creditors
  2. Declaration and Signature of Non-Attorney Bankruptcy Petition Preparer
  3. Dosclosure of Compensation of BK Petition Preparer (stat. limit is $200)
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15
Q

If the list of creditors accompanies the petition, 5 items that must be filed by an INDIVIDUAL debtor with the petition or within 14 days

A
  1. Certficiation that Notice to an Indiividual Debtor with Primarily Consumer Debts has been Given before the Petition was Filed
  2. Certificate of Credit Counseling and Debt Repayment Loan
  3. Statement of Current Monthly Income and Means Test Calculation
  4. Copies of all payment advices or other evidence of payment received by the debtor from any employer within 60 days prior to the filing of the petition
  5. Statement disclosing any reasonably anticipated increase in income or expenditures over the 12-month period following the date of the filing of the petition
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16
Q

5 things that must be filed by ALL DEBTORS within 14 days of filing the petition if accompanied by the list of creditors

A
  1. Schedules of Assets and Liabilities
  2. Schedule of Executory Contracts and Unexpired Leases
  3. Schedule of Current invome of Individual Debtors
  4. Schedule of Currents Expenditures o Individual Debtors
  5. Statement of Financial Affairs (money spent recently)
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17
Q

Must be filed by all debtors if represented by an attorney, within 14 days of filing the petition

A
  1. Statement Disclosing Compensation of Attorney for the Debtor
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18
Q

Filed re: secured property within 39 days of petition or by date set for 341 meeting

A

Debtor’s Statemetn of Intention (Regarding Secured Property and Unexpired Leases) (regards the property the debtor intends and is entitled to keep)

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19
Q

If the debtor fails to file all the required materials, the case will be automatically dismissed within (1) days from the petition. This is called (2) and does not require the debtor to (3). The lawyer simply has to file a (4). A (5) tells the debtor what needs to be filed

A
  1. 45
  2. administrative dismissal
  3. wait before re-filing
  4. motion to re-open the case
  5. deficiency memo
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20
Q

8 things that must be filed within 45 days to avoid auto-dismissal

A
  1. list of creditors
  2. schedule of assets & liabilities
  3. schedule of current income and current expenditures
  4. statement of financial affairs
  5. Certificate by attorney/petition preparer OR signed certificate by debtor that debtor received notice
  6. copies of all payment advices or other evidence of payment received by the debtor from an employer within 60 days of petition
  7. statement of monthly net income(with itemization)
  8. statement of reasonably anticipated increases in income/spending for 12 months after petition
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21
Q

Required to be sent to the trustee and any creditor who requests within 7 days before first date set for 341 meeting

A
  1. Debtor’s Federal income tax return for most recent year ending before petition was filed
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22
Q

Required to be filed by an individual debtor 60 days after te frist date set for 341 meeting

A

Debtor’s Certification of Completion of Instructional Course Concerning Financial Management

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23
Q

The Petition and other docs are filed with the (1). Nearly all BK courts require the petition and other docs to be filed (2)

A
  1. clerk of the BK court

2. electronically

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24
Q

3 things that happen with the filing of the petition

A
  1. the bankruptcy estate is created
  2. the atuomatic stay goes into effect
  3. the Chapter 7 case trustee is appointed (interim, in case there is a conflict)
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25
Q

The Bankruptcy estate includes all (1) and (2)(3) of the debtor as of the date of (4). (with minor exceptions)

A
  1. legal
  2. equitable
  3. interests
  4. filing
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26
Q

2 ways property can get removed from the estate

A
  1. debtor claims exemption

2. trustee abandons

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27
Q

The trustee represents the (1) and is paid by the (2)

A
  1. estate

2. court

28
Q

Property acquired (1) the petition is not part of the estate, with a few exceptions related to property acquired by certain means within 180 days of filing the petition: (1), (2) and (3)

A
  1. after
  2. property acquired by behest, devise or inheritance
    3 property acquired as a result of a property settlement with the debtor’s spouse, or of an interlocutory or final divorce decree
  3. property acquired as a beneficiary of a life insurance policy or a death benefit plan
29
Q

The US BK Court in which the a case is filed has (1) over property, regardless of (2)

A
  1. exclusive jurisdiction

2. where the property is located

30
Q

Exemptions may be (1) ior (2)

A
  1. in specie (a car)

2. a specified dollar amount (up to $3,000 in a car)

31
Q

The debtor may choose between (1) and (2) exemptions

A
  1. state exeptions and federal nonbankruptcy exemptions

2. federal bankruptcy exemptions (NOT AZ–can only use state)

32
Q

The BK Code permits states to (1). It is silent on whether debtors may convert (2)

A
  1. opt out of allowing debtors to choose federal exemptions

2. nonexempt property to exempt property

33
Q

5 things the automatic stay does not stop

A
  1. criminal actions
  2. actions to establish paternity
  3. actions to establish or modify domestic support obligations
  4. actions concerning child custody or visitation
  5. actions relating to the enforcement of child support
34
Q

At the time of filing, the (1) is appoonted from the (2), and becomes permanent at the (3) unless another trustee is (4). The primary role of the trustee is to (5)

A
  1. interim case trustee
  2. Chapter 7 panel
  3. 341 meeting
  4. elected
  5. adminster the estate by reducing to caseh the property of the estate that is not budensom, exempt or fully secured
35
Q

9 powers of the Chapter 7 trustee

A
  1. demand property held by another to be turned over to the estate
  2. abandon property of the estate
  3. assume or reject executory contrcts and unexpired leases (rejection damages can be filed for by creditors)
  4. avoid claims that an actual creditor could avoid under state law
  5. avoild unperfected security interests
  6. avoid statutory liens that arise on the debtor’s bankruptcy or insolvency
  7. avoid prepetition transfers of property of the estate to creditors that are voidable preferences (preference = paying a certain creditor off before petition)(trustee files preference lawsuit)
  8. avoid transfers of property of the estae that are fraudulent under the BK code (e.g., transferring to another account to shelter it)(adversary proceedings are brought in for fraud)
  9. avoid postpetition transfers of property of the estate unless they are authorized by the BK Code or Court
36
Q

Because the vast majority of Chapter 7 cases are (1), Form B9 includes a statement to creditors not to (2). This notice will give at least (3) for filing proofs of claim or interest. This deadline is (4) unless the creditor is not listed in the BK, in which case they can file a (5).

A
  1. no asset
  2. file a proof of claim unless they receive notice to do so
  3. 90 days
  4. sacrosanct (cannot be broken)
  5. Motion to File Leave for Late Claim
37
Q

A claim may be (1), (2) or (3).

A
  1. contingent (depends on a future event, e.g., pending lawsuit, inheritance)
  2. unliquidated (amount is disputed)
  3. disputed (claim contested by the debtor)
38
Q

A proof of claim or interest is allowed unless (1)

A
  1. objected to by a party in interest
39
Q

A contested matter is intiated by a (1), (2), or (3). An adversary proceeding is a (4) filed in the (5), initiated by a (6) or (7) of a previously filed case in Superior Court or District Court.

A
  1. motion
  2. application
  3. request
  4. lawsuit
  5. Bankruptcy Court
  6. complaiint
  7. notice of removal (allows proceeding to continue–i.e., not be stayed)
40
Q

5 motions by the debtor

A
  1. Motion to convert
  2. Motion to Dismiss the case
  3. Motion for a change of venue
  4. Motion to Enforce the Automatic Stay (if creditor continues to pursue debtor)
  5. Motion to Avoid a Judicial Lien
41
Q

6 Motions by a party in interest

A
  1. Motion for Relief from Automatic Stay
  2. Motion to Dismiss the Case
  3. Motion for Abstention by the Court (ask judge to recuse self)
  4. Motion for a Change in Venue
  5. Motion for Disallowance of a Claim (e.g., inappropriate victims in a lawsuit)
  6. Motion for Examination of any entity (credit feels debtor is not being forthcoming)
42
Q

3 reasons U.S. Trustee might move to dismiss the case

A
  1. failure to file Schedules and SOFA
  2. abuse of provisions of Chapter 7
  3. administrative reasons (filed within 8 yrs., do not pass means test, make sufficient wages)
43
Q

3 reasons BK Court may move to dismiss the case

A
  1. unreasonable delay (not providing paperwork asked for)
  2. failure to pay an installment of the filing fee
  3. abuse of Chapter 7 provisions
44
Q

After every motion, there is a (1) and then a (2)

A
  1. preliminary hearing

2. evidentiary hearing

45
Q

2 Complaints by the creditor

A
  1. Complaint objecting to Debtor’s Discharge
  2. Complaint objecting to the Dischargeability of a debt (more common–object to discharge of the specific debt owed to them)
46
Q

2 complaint by the Chapter 7 trustee

A
  1. complaint objecting to Debtor’s discharge
  2. Complaint to avoid prepetition and postpetition transfers (postpetition = transfer of estate property. Lawsuit against debtor and person transferred to)
47
Q

The U.S. trustee oversees the (1) and the (2)

A
  1. debtor

2. case trustee

48
Q

Complaint filed by debtor

A
  1. Complaint to Determine the Dischargeability of a Debt (e.g., whether something was exempt)
49
Q

A debtor cannot file another Ch. 7 petition within (1) of (2)

A
  1. 8 years

2. discharge

50
Q

The Clerk of the BK court notifies the (1), (2), (3) and (4) of the 341 meeting, which must be held (5) days after the order for relief.

A
  1. debtor
  2. case trustee
  3. all creditors
  4. all indenture trustees
  5. 21-40
51
Q

A creditor may object to a debtor’s claimed (1), and must do so within (2) days after the 341 meeting or after an amendment/supplement is filed. Otherwise the exemption is (3) even if it lacks valid basis

A
  1. exemption
  2. 30
  3. allowed
52
Q

An adversary proceeding is a (1) with a different (2) and (3) than the administrative case

A
  1. lawsuit
  2. case number
  3. timeline
53
Q

The U.S. Trustee must call a meeting of (1) and may call a meeting of (2).

A
  1. creditors (341 meeting)

2. equity security holders

54
Q

6 features of a 341 meeting of creditors

A
  1. debtor myst provide federal income tax return within 7 days before
  2. Chapter 7 trustee presides at the meeting
  3. Creditors allowed to vote under BK Code may request the election of a trustee–otherwise, interim becomes permanent
  4. debtor must attend and answer under oath
  5. case trustee, creditors, indenture trustees and US Trustee may ask the debtor questions
  6. creditor may appear and participate without being represented by attorney
55
Q

The (1) is generally not held becaues the estate will be liquidated`

A
  1. Meeting of Equity Security Holders (shareholders - will not get anything–should understand risk)
56
Q

An individual debtor may redeem certain property (1) that cannot be (2). The debtor must include his (3) on Form B8. The debtor can redeem property under lien by paying the (4) in full, at which point the creditor will (5). Redeeming property requires a (6)

A
  1. unencumbered by a lien
  2. avoided
  3. intention to redeem
  4. value of the collateral (value of the car, often less than the remainder of the loan)
  5. file a claim for the unsecured portion
  6. Motion for Redemption
57
Q

Reaffirmation is a contract between the debtor and a creditor to (1). It can modify the (2). The debtor’s (3) must appear on form B8. If payments are not made according to the reaffirmation, the creditor can (4).

A
  1. allow the debt to survive discharge
  2. terms of the existing agreement (terms, loan amount)
  3. intention to reaffirm
  4. sue for the full amount of the loan (vs. getting paid only for the secured portion, as in redemption)
58
Q

Corporations and partnerships do not receive a (1)–they just (2)

A
  1. discharge

2. cease to exist

59
Q

Discharge may be revoked by filing a complaint before the end of (1) after discharge or the date the (2), whichever is later. The main reason for this is (3)

A
  1. one year
  2. case was closed
  3. fraud (assets not included)
60
Q

Overall priority of distribution after liquidation of the estate

A
  1. secured creditors (holding perfected security interests)
  2. unsecured priority claims
  3. unsecured nonpriority claims
  4. debtor
61
Q

10 unsecured priority claims, in order of priority

A
  1. domestic support obligations
  2. administration expenses (inc. attorney fees)
  3. extension of credit in an involuntary case
  4. wages, salaries, commissions
  5. contributions to employee benefit plans
  6. farmer and fisher claims
  7. consumer deposits
  8. certain governmental tax claims
  9. insured depository institution claims
  10. impaired driving claims
62
Q

4 types of unsecured nonpriority claims

A
  1. timely filed unsubordinated general unsecured claims
  2. late filed unsecured claims with not notice of the BK filing
  3. other late filed unsecured claims
  4. penalty-type claims
  5. interest on priority and nonpriority prepetition claims
63
Q

Closing of the case begins with the Chapter 7 Trustee’s filing of a (1) and (2) submitted to the (3). Once approved this final report is filed along with (4). If it was no-asset case, there is no (5)

A
  1. final report
  2. proposed distribution of assets
  3. U.S. Trustee
  4. fee application
  5. real report–the distribution report is simply a docket entry
64
Q

After final report is filed, the (1) notifies creditors of such. Written objections must be filed within (2). After the (3) reviews everything, the trustee (4).

A
  1. Bankruptcy Court Clerk
  2. 30 days
  3. BK Court
  4. distributes the assets of the estate
65
Q

After the assets have been distributed, the trustee files a (1), requests (2), and requests (3). The trustee is then (4) and the case is closed. The case can be amended without opening if there were (5), or it may be reopened to (6) or to (7)–even so, the (8) remains the same.

A
  1. final account reporting distribution
  2. BK Court to close the case
  3. discharge
  4. discharged
  5. clerical errors
  6. add a creditor
  7. administer a new asset
  8. discharge date
66
Q

If the debtor dies, the (1) is over and creditors must go after the (2). However, (3) continue.

A
  1. bankruptcy
  2. probate
  3. adversary proceedings

LAS216 - Bankruptcy (6 decks)

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