blaw final - Powers of Trustee Trustee Can take away any...

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Powers of Trustee - Trustee Can take away any action the debtor could have taken to recover money or valuable property - This includes fraud, duress, incapacity, and mutual mistake The Automatic Stay - a court ordered stop - applies to all chapters of bankruptcy - one of the most important features of the bankruptcy code o goes into effect as soon as a petition is filed o creditors must stop pointing on doors o no more harassing or filing law suits exception: PMSA creditor has 30 days to protect you don’t get stopped from automatic stay within a 30 day window Alimony and child support continues (no court ordered stop) If you are in the process of getting evicted, the landlord can still evict you o a creditor may obtain a relief from the stay don’t like the idea of the debtor continuing to use ad depreciate the collateral without making any payments a secured creditor may seek to lift the stay so that it may obtain possession of the collateral if the debt is much bigger than the collateral the stay might be lifted to the creditor call sell the item. o article 9 automatically grants 60 days to lift stay Property of the Estate -All the debtor’s non-exempt assets become property of the bankruptcy estate property acquired after petition date is not part of the estate o under certain circumstances, post petition property may become part of the estate o in most cases, this is to prevent frauds upon the creditors “friendly divorcees” All collateral and real estate mortgages expire in 4 days unless debtor is willing to pay off debt (like car) than it will expire in 45 days Any gifts given to you within 180 days after you file for bankruptcy are included o Divorce settlements o Insurance papers Exemptions The code identifies the property where the debtor may be exempt o These exemptions only belong to natural persons, not partnerships or corporations
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o Ex) clothes or a place to live The code permits states to chose their own exemption statute in place of this for bankruptcy purposes o Can elect to use federal or state petition o PA is lousy so many people use federal Powers of the Trustee has the right of a lien creditor in all of the property as petition date can take any action the debtor could have taken to recover money(or valuable property) o this included fraud, duress, incapacity, and mutual mistake whatever lawsuit debtor filed, trustee gets it considered a Bona Purchaser for Value of the Debtor’s Non-exempt Real Property o This means any unperfected creditor in personal property and unfilled real property mortgages will lose to the bankruptcy trustee Can’t just most, must live in state for 2 years before being considered “domiciled” Can’t just have a ranch house in Texas o (Texas has no state income tax) Resident -people have actual residence there vs. domicile
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This note was uploaded on 04/28/2008 for the course B LAW 444 taught by Professor Sharp,jeffm during the Fall '06 term at Penn State.

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blaw final - Powers of Trustee Trustee Can take away any...

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