Term
|
Definition
| Liquidation; applies to individuals or businesses. IE Going out of business sign, it means that bus.is dying or dead |
|
|
Term
|
Definition
| Reorganization; applies to most businesses, but not individuals. |
|
|
Term
|
Definition
| Reorganization; applies to family farms |
|
|
Term
|
Definition
| Wage Earner plan; applies to individuals |
|
|
Term
|
Definition
| Spouses may file proceedings together under 7 or 13 |
|
|
Term
|
Definition
| designed to fund a business tat is fundemantelly sound, but has created a short term problem and if it clears up, it will be good in the long term. IE: recent times: Airlines, motor companies. Ch 11 allows you to void any contract, not just voidable. |
|
|
Term
|
Definition
| the filing of a petition begins jurisdiction in the bankruptcy court. |
|
|
Term
|
Definition
| How does bankruptcy start |
|
|
Term
|
Definition
| available to any debtor even if solvent; consumer debtor must receive credit counseling before filing. |
|
|
Term
|
Definition
| may be filed only under Chapter 7 or 11 if the debtor is generally not paying his debts as they become due; debtor may answer the petition. |
|
|
Term
|
Definition
The following must be included in this
1.Identify the debtor
2.Schedule of assets and debts
3.Id of creditors
Anything not listed or ID’d, you won’t get bankruptcy relief to that ind. |
|
|
Term
|
Definition
| This is bad for the debtor; It means their bankruptcy plea is being dismissed and won’t be able to file again for at least another 8 years or so |
|
|
Term
|
Definition
| Most businesses want to file an 11, but if they go through reorganization, then it eventually becomes a chapter... |
|
|
Term
|
Definition
| a Chapter 7 case may be ___________ to a Chapter 11 or 13 case in certain circumstances, and vice versa. The most common __________, in the case of a business, is from a Chapter 11 to a Chapter 7. |
|
|
Term
|
Definition
| everything freezes in place. If a creditor violates this, you have a contempt of court. IE a bank that takes back the car even though the debtor goes in bankruptcy and bank is aware of this, the bank has commited a crime of contempt of court. |
|
|
Term
|
Definition
| In a case, every bankruptcy proceeding is required to have this for the individual to show up |
|
|
Term
|
Definition
| if assets exist, creditors given opportunity to file claim |
|
|
Term
|
Definition
| any entity that has a claim against the debtor |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Collateral; claim with a lien on property of the debtor. |
|
|
Term
|
Definition
| Uncollateral; portion of a claim that exceeds the value of any property securing that claim. |
|
|
Term
|
Definition
| the right of certain claims to be paid before claims of lesser rank. |
|
|
Term
|
Definition
| How many types of claims? |
|
|
Term
|
Definition
| Top priority claim; it's a collateral claim, but only to the extent of the collateral. |
|
|
Term
| #2. Unsecured Priority Claim |
|
Definition
|
|
Term
| #3. Unsecured non-priority claim |
|
Definition
| Third in-line; they usually get nothing. |
|
|
Term
|
Definition
| relief from liability for all debts except those the Bankruptcy Code specifies as not ____________ |
|
|
Term
|
Definition
| You file a bankruptcy to get a _______; it is why you go to bankruptcy, It wipes out many kinds of debt |
|
|
Term
|
Definition
| Your assets that are subject to bankruptcy proceedings. |
|
|
Term
|
Definition
| When a bankruptcy case is filed, all legal and equitable interests of the debtor in nonexempt property become property of the _______ |
|
|
Term
|
Definition
Creditors are generally limited to satisfaction of their debts from the estate, not the debtor.
The estate is treated as a separate legal entity, distinct from the debtor. |
|
|
Term
|
Definition
| a third party that supervises the bankruptcy case and can control disposition of assets; he gains the rights and powers of creditor with judicial lien |
|
|
Term
| FL exemption: Homestead Real Estate |
|
Definition
Outside city, up to 160 acres, no value cap – FL only
Outside city, up to 160 acres, no value cap – FL only |
|
|
Term
| Priority of Claims - the right of certain claims to be paid before claims of lesser rank. |
|
Definition
1.Domestic support obligations
2.Expenses of administration of debtor’s estate
3.Gap creditors (incurred between filing of claim and order for relief)
4.Taxes |
|
|
Term
|
Definition
| Debt that was owed before, and it wasn’t made in ordinary course of business, you must pay that to the bankruptcy court |
|
|
Term
|
Definition
| Bankruptcy Code invalidates certain preferential transfers made before the date of bankruptcy from the debtor to favored creditors. |
|
|
Term
|
Definition
*Trustee may “avoid” (set aside) “fraudulent” transfers made on or within one year before the date of bankruptcy. A fraudulent transfer is one intended to hide or protect assets.
IE: Transferring your moneys to your family, etc. |
|
|
Term
|
Definition
| Bankruptcy Code invalidates certain preferential transfers made before the date of bankruptcy from the debtor to favored creditors. |
|
|
Term
|
Definition
*Trustee may “avoid” (set aside) “fraudulent” transfers made on or within one year before the date of bankruptcy. A fraudulent transfer is one intended to hide or protect assets.
IE: Transferring your moneys to your family, etc. |
|
|
Term
|
Definition
| terminating the business of the debtor (if applicable), distributing his nonexempt assets, and, discharging all dischargeable debts |
|
|
Term
|
Definition
| A court may dismiss a Ch. 7 case if it would be an abuse of the provisions of Chapter 7. Abuse may be found if the debtor filed in bad faith or if the debtor’s income is greater than the state median income (by using the means test |
|
|
Term
| Distribution of Estate (part of Liquidation from ch7) |
|
Definition
| (1) secured creditors, (2) creditors entitled to a priority, (3) unsecured creditors, (4) fines & interest, and (5) the debtor. |
|
|
Term
|
Definition
| to preserve a distressed entity and its value as a going concern |
|
|
Term
| Proceedings of Reorganization (ch11) |
|
Definition
| debtor usually remains in possession and management of the property of the estate. Debtor usually serves as trustee, under the direction of a committee of creditors. |
|
|
Term
| Confirmation of Reorganization Plan |
|
Definition
| requires (1)good faith, (2)feasibility, (3)cash payments to some creditors, and usually (4)acceptance by creditors |
|
|
Term
|
Definition
| Some effects of confirmation plan of reorg.: - binds debtor and creditors and discharges the debtor (after plan payments are made.) |
|
|
Term
| Adjustment of Debts of Individuals |
|
Definition
| to permit an individual debtor to file a repayment plan (called a “wage-earner’s plan) to discharge most debts. |
|
|
Term
| Confirmation Plan of Adjustment of Individuals's debts |
|
Definition
| Confirmation of Plan of _____________ - requires (1) good faith, (2) that the value of property distributed to creditors be not less than the amount to be paid them under Chapter 7, (3) that secured creditors accept the plan, and (4) that the debtor be able to make all payments and comply with the plan. |
|
|
Term
| Binds the debtor and all creditors. |
|
Definition
| Effect of Confirmation Adjustment of Debts of Individuals—Ch. 13? |
|
|
Term
|
Definition
| gives the debtor more time to pay, either in full or reduced. |
|
|
Term
| Assignment for Benefit of Creditors |
|
Definition
| voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all the debtor's debts. |
|
|
