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Unformatted text preview: igate the financial affairs of the debtor; If a purpose would be served, to examine proofs of claims and object to any that are improper; Unless the court orders otherwise, to furnish information concerning the estate and the estate's administration as requested by a party in interest; If the debtor's business is authorized to continue operating, to file with the court appropriate reports and summaries, including a statement of receipts and disbursements; and To file a final account of the administration of the estate with the United States Trustee and the court. Bankruptcy Liquidation: Bankruptcy Liquidation: Priority of Claims 1. 2. 3. 4. 5. 6. 7. 8. 9. Administration expenses associated with liquidation. Unsecured claims arising after the filing of an involuntary bankruptcy petition. Wages earned within 90 days before the filing date, not to exceed $2,000 per claimant. Contributions to employee benefit plans arising with 180 days before the filing date. Consumer claims, not exceeding $900. Tax claims. Secured and unsecured creditors’ claims. Preferred stockholders’ claims. Common stockholders’ claims. 33 Secured and unsecured Claims Secured and unsecured Claims A secured claim is one that gives the creditor an interest in property as assurance of payment. Two common examples of secured debt are mortgages given to secure the repayment of amounts owed for a home purchase, and security interests in cars or trucks to secure repayment of these purchases. In these cases, the lenders or banks providing the loan for the home, car, or truck purchase are said to be “secured creditors,” as they will have rights in the home or vehicles if payment is not made. These rights will come before other creditors (referred to as unsecured creditors) in the event 34 Secured and unsecured Claims Secured and unsecured Claims The holder of an unsecured claim can’t look to any specific property of the debtor for payment, but the Bankruptcy Code gives some unsecured claims priority over others....
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This note was uploaded on 02/11/2014 for the course MANA 2028 taught by Professor Sisterennis during the Winter '12 term at Marquette.

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