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2012 April 16 240 study guide 3

8 paul owes a debt of 250000 arising from a judgment

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8. Paul owes a debt of $250,000 arising from a judgment resulting from a drunken driving accident that disabled a mother of four. Is this debt dischargeable in bankruptcy? Why? No, Liability death or personal injury based upon the debtor’s operation of a motor vehicle, vessel, or aircraft while legally intoxicated. 9. A wants to file for bankruptcy. He owns a house in the Hamptons worth $400,000. To make sure the creditors don’t take it, a year before filing he put the house in his mother’s name. What kind of transfer is this? What is the actual intent of this transfer? What can the trustee do? Fraudulent transfer. The fraudulent transfer consists of the debtor’s transferring property with the actual intent to hinder, delay, or defraud any of her creditors. The trustee may avoid fraudulent transfers made on or within two years before the date of the filing of the petition. 10. What is the principle purpose of the Bankruptcy Code? What kind debtor is the Code intended to help? Fresh start; honest debtor. 11. In a bankruptcy, which creditors are in the best position to recover from the distribution of the estate? Secured creditors. 12. What is the means test? Why is it important? Exam income tests if a person is eligible for chapter 7. 13. What can a business that is facing financial trouble file for? Chapter 11, if failed file chapter7 14. What is reorganization? What is the main objective of the reorganization proceeding? Reorganization is the process of correcting the factors that caused the distress of a business enterprise and thereby preserving both the enterprise and its value as a going concern. To develop and carry out a fair, equitable, and feasible plan of reorganization
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15. Do customers of a company in Chapter 11 get affected by the filing of bankruptcy? No, they might not even know. 16. What are the requirements for the bankruptcy court to confirm the reorganization plan? (1) Good faith (2) Feasibility (3) Cash payment to certain priority creditors (4) Usually acceptance by creditors 17. Which bankruptcy filing allows individuals to adjust their debts? What happens if the debtor fails to make the payments under the repayment plan? Chapter 13, if the debtor fails to make the payments under the repayment plan, the case will be converted to chapter 7 or dismissed. Chapter 42 1. Name three examples of unfair employer practices and unfair union practices. Unfair employer practices: (1) Interfering with right to unionize. (2) Refusing to bargain in good faith. (3) Discriminating against union members. (4) Dominating the union (5) Discriminating against an employee Unfair union practices: (1) Coercing an employee to join the union. (2) Refusing to bargain in good faith. (3) Causing an employee to require recognition of an uncertified union. (4) Engaging in secondary activity.
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