Reg mod30 Flashcards
The trustee can obtain the assets that were preferentially transferred by the debtor prior to filing for bankruptcy if __________.
(TANIM)
T: Transfer of property to benefit a specific creditor
A: Antecedent (old) debt – transfer was to pay for an old debt
N: 90 days – transfer was made within 90 days of filing
I: Insolvent – transfer must have been made when the debtor was insolvent
M: More – the creditor receives more than he would have as a result of bankruptcy
Describe the basic characteristics of Chapter 7 bankruptcy.
Voluntary or Involuntary
Liquidation of assets
Cannot File Chapter 7: Railroads, Insurance companies, Banks (RIB)
What is a ‘Cram Down”?
This refers to the power of the bankruptcy court to approve a Reorganization plan that has not been approved by both the creditors committee and the stockholders.
Who must approve the reorganization plan in Chapter 11 bankruptcy?
More than half of the creditors of each creditor committee and at least two thirds of the stockholders.
If a debtor receives property from an inheritance after having filed for Chapter 7 bankruptcy, is the inheritance included in the estate?
It depends. If the inheritance is received within 180 days of filing it must be included. Property obtained from a divorce or the receipt of insurance proceeds, if received within 180 days of filing are also included in the estate.
If an individual has 12 or more unsecured creditors, how many creditors must file in order to bring the debtor into involuntary bankruptcy?
A minimum of three unsecured creditors must file and the claims must be greater than or equal to $14,425.
Debtors that fail to keep adequate records or debtors that are dishonest are generally denied bankruptcy. True / False
TRUE
Describe the basic characteristics of Chapter 11 bankruptcy.
Voluntary or Involuntary
Business Reorganization
Cannot File Chapter 11: Insurance Companies & Banks (Note: railroads may file under Chapter 11)
What debts may not be discharged in bankruptcy?
Taxes, Alimony, Child Support, Liabilities arising from theft, debt obtained fraudulently, amounts owed due to intentional torts, Student Loans (in general), and Government fines and penalties. Note: this list does not include all debts that may not be discharged – just the most notable.
Is a business required to shut down when going through Chapter 11 bankruptcy?
No, the business may continue to operate.
What businesses cannot file Chapter 7 Bankruptcy? Chapter 11?
Ch 7: RIB
Railroads
Insurance companies
Banks
Ch 11: Banks & Insurance Cos.
