bule Exam 4 SG

bule Exam 4 SG - Goal of Bankruptcy provide fresh start by...

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Goal of Bankruptcy Bankruptcy Courts under authority of federal US District Court - judges part of federal judiciary appointed for 14 yr terms Constitutional Authority congress has power to establish uniform laws on bankruptcy pursuant Chapter 7 Liquidation available to individuals, partnership, corp, railroads, insurance, bank, savings, loans, credit union, SBA not eligible / is voluntarily/forced Chapter 11 Reorganizations keep financially troubled business in operation in the absence of fraud, incompetence, gross mismanagement, debtor & creditors create a plan under which debtor pays portion of debts, discharged from rest & continues business - voluntary/not Chapter 13 Debt Readjustment permits qualified individuals to file a repayment plan which if approved, will discharge them from most of debts Voluntary Petition list both secured/un creditors add. & amt owed, statement of debtor financial affairs, property debtor own, property debtor claims as exempt, debtor current income & expenses, need not be insolvent for voluntary bankruptcy Involuntary Petition debtor's creditors attempt to force debtor into bankruptcy, not available against farmer/charities, 12/more creditors = 3+ unsecured creditors must sign petition w/ claims of $12,300+, less 12 creditors = 1 creditor w/ unsecured claim of $12,300+ may sign force Stay filing voluntary/not restrain all creditors from initiating new/continuing efforts to collect existing claims against debtor Trustee use, sell, lease, deposit/invest money property of estate; employ attorneys, accountants as needed; assume/reject executory contract/unexpired lease, avoid fraudulent conveyances & preferential transfers / CH 7 trustee elected by creditors - CH11/13 by court Fraudulent Conveyance transfer of ownership of asset made by debtor for "significantly less" than FV & intent to perpetrate fraud on creditors Preferential Transfer made to benefit creditor, made on account of antecedent debt owed b4 transfer made, made while debtor was insolvent, made within 90 days b4 bankruptcy petition, creditor receive more than would have otherwise received under bankruptcy proceedings Exemptable Assets up to $ 20,200 equity in residence & burial plot, motor vehicle up to $3,225, jewelry up to $,1350, tools of trade up to $2,025, Personal injury awards up to $20,200, household goods, animals, appliance, books, apparel, $525 per item up to $10,775 , SS, alimony - $0 Priority of Claims 1) Secured Priority of Claims 2) Unsecured : order of priority paid in 1st category b4 other categories: Domestic, Admin, Wages, Benefit plans, tax, DUI, Gen. Non-Dischargeable Debts, Claims For:
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This note was uploaded on 10/28/2011 for the course BULE 301 taught by Professor Stanoff during the Spring '11 term at NYU.

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bule Exam 4 SG - Goal of Bankruptcy provide fresh start by...

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