Chapter 26 Notes

Chapter 26 Notes - Ch. 26 Bankruptcy Proceedings Two goals:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Bankruptcy Proceedings Two goals: Protect debtor and ensure equitable treatment to creditors Bankruptcy Reform Act of 2005 Types of Bankruptcy Relief o Chapters 1, 3, 5 – general definitions o Chapter 7 – liquidation proceedings o Chapter 9 – adjustment of debts of municipalities o Chapter 11 – reorganizations o Chapter 13 – adjustment of debts of parties with regular income (for individuals) Special treatment of consumer-debtors o Consumer-debtor – an individual whose debts are primarily consumer debts Chapter 7 – Liquidation Remaining debts are usually discharged Individuals and corporations are allowed – not railroads, banks, investment companies Petition in bankruptcy – the document that is filed with the bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately, sworn to under oath, and signed by the debtor Voluntary bankruptcy o U.S. trustee (government official to perform administrative tasks) must approve nonprofit budget and counseling agencies and make a list of approved agencies publicly available. Debtor must attend briefing and provide proof o Chapter 7 Schedules A list of both secured and unsecured creditors, addresses, and amount of debt A statement of the financial affairs of the debtor A list of all property owned by the debtor, including property claimed by the debtor to be exempt A list of current income and expenses A certificate of credit counseling Proof of payments received from employers within 60 days prior to filing A statement of the amount of monthly income, itemized to show how the amount is calculated A copy of the debtor’s federal income tax return for the most recent year ending immediately before the filing of the petition o Substantial abuse: Means test Used to determine eligibility for Chapter 7 Above/below state median? Disposable income less than $ eligibility Order for relief – a court’s grant of assistance to a complainant. Order
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Chapter 26 Notes - Ch. 26 Bankruptcy Proceedings Two goals:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online