01-06 - Basic Bankruptcy Law for Paralegals Seventh Edition...

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Basic Bankruptcy Law for Paralegals Seventh Edition David L. Buchbinder
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Chapter One. A Short History of Bankruptcy After reading this chapter, you will be able to: Define bankruptcy Understand why the United States Bankruptcy Code emphasizes notions of both debtor relief and debt collection Understand the foundational terms and concepts necessary to approach a study of the bankruptcy system
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Bankruptcy Systems Methods developed by societies to resolve the effects of financial crisis.
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Common Reasons for Individual Bankruptcy Filings Death in the family Divorce Catastrophic illness Unanticipated unemployment Excessive credit card debt
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Common Reasons for Business Bankruptcy Filings Obsolete products Failure to compete in the industry Mismanagement Sudden catastrophe Insider disputes Fraud A poor general economy
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Debt Collection The primary focus of the debt collection features of bankruptcy systems has always been to formulated a body of rules to provide for the collection of assets of a debtor and the equitable distribution of the proceeds of those assets among multiple creditors.
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Debtor Relief The primary focus of the debtor relief features of bankruptcy systems has vacillated throughout history from the extremes of punishment to forgiveness.
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Discharge Legal relief from debt
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Exemption Statutorily defined property that an individual debtor may protect from administration by a bankruptcy estate. Exempt property is not available for liquidation to pay a dividend to creditors. Exemptions are a primary element of debtor relief.
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Liquidation The sale of an estates assets to repay creditors.
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Composition Agreement An agreement between a debtor and multiple creditors for the repayment of debt.
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Chapter Two. Introduction to the Bankruptcy Code After reading this chapter, you will be able to: Provide an organizational overview of the Bankruptcy Code Define basic bankruptcy terms, including creditor, debtor, and trustee Understand the two basic types of bankruptcy proceedings: liquidations and reorganizations List alternatives to bankruptcy
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Bankruptcy Code The name of the bankruptcy laws in effect in the United States since October 1, 1979. This code has been significantly amended four times, in 1984, 1986, 1994, and 2005.
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Creditors and Debtors Creditor : An entity with a claim arising before the filing of a bankruptcy petition. Claim : A right to payment of any kind or a right to performance that may be compensated by damages. Debtor : An entity that owes a debt (a liability upon a claim). The entity filing a voluntary bankruptcy proceeding or against whom an order for relief is entered in an involuntary bankruptcy is known as the debtor.
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Trustee An independent third party who liquidates the estate’s assets and distributes dividends to the creditors.
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To the extent that a specific provision of Chapters 7, 11, 12 or 13 conflict with a
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This note was uploaded on 01/06/2012 for the course PARA 093 taught by Professor Ferrill during the Spring '08 term at DeAnza College.

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01-06 - Basic Bankruptcy Law for Paralegals Seventh Edition...

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