Exam 28: Bankruptcy and Reorganization

Chapter 13 of the bankruptcy law gives individuals who have a steady source of income the opportunity to:

Which two states were cited in the textbook as having homestead exemptions without an upper dollar limit?

If a debtor is an individual who wants to keep most of his property,has a steady income,and believes he can pay off most of his debts,the best bankruptcy plan for him would probably be:

How far back in time can the trustee look to recover a fraudulent transfer?

Only individuals may file a petition under Chapter 13 of the Bankruptcy Code.

Which of the following is true about exemptions for an individual in a Chapter 7 bankruptcy?

A fraudulent transfer includes:

Homestead exemptions in some "debtor haven" states are huge compared to those allowed under the federal bankruptcy laws.Should states be able to have homestead exemptions much larger than the federal exemptions and those of most other states? Why would a state choose to have a large homestead exemption? What are the advantages and disadvantages to such a state?

If a debtor makes a bona fide payment of a debt for a domestic support obligation,then it will not be considered to be a fraudulent payment.

Mary is considering filing bankruptcy because she is unable to pay her debts as they come due.Mary has a steady job and can pay some of her obligations.Mary is especially worried about losing all her assets,and thus is afraid to file bankruptcy.Generally discuss Mary's situation.

Sixth Bank made a car loan to a corporation that has now filed a liquidation bankruptcy.The original amount of the car loan was $20,000,on a car that cost $24,000 new.The current balance on the loan is $12,000 and the car is worth $10,000.Assuming that Sixth Bank has made all appropriate filings in the corporation's bankruptcy case,Sixth Bank is:

If you are a creditor,your best protection in the event of the debtor's bankruptcy (including protection from the debtor's other creditors)is usually obtained if you had previously received:

One advantage of the Bankruptcy Reform Act of 2005 is that it decreased the number of bankruptcy judges to handle bankruptcy cases,as the number of overall bankruptcy cases has decreased.

An unmatured life insurance policy owned by the debtor is exempt from the bankruptcy estate.

Mike has a retail jewelry business that caters to very wealthy clients.Mike has always been very slow in paying his suppliers because he figured that he might as well use their money interest-free as long as possible.Because Mike purchases large amounts from these suppliers,they grudgingly accepted his slow payment.With his regular customers,Mike was very generous,often giving them gifts that were lavish by most standards.But Mike viewed a gift of a piece of jewelry worth a few thousand as small because these customers often spent well over $100,000 in a year and Mike's cost for these gifts was much less than the retail value.In 2001,Mike's business suddenly dropped sharply.In September,he made three gifts of jewelry worth $4,000 each to his three best customers.In addition,he paid $70,000 to his favorite supplier.Of this amount,$20,000 was for a purchase at the end of August,$10,000 for an item delivered when Mike made payment,and the other $40,000 was from a June purchase.Mike's jewelry business filed bankruptcy on October 1,2001.Can the trustee recover the gifts made to his customers and the payment to his favorite supplier?

Which of the following is not part of the fresh start in bankruptcy?

Why would an individual debtor use a Chapter 13 Consumer Debt Adjustment when a Chapter 7 bankruptcy is available to forgive all indebtedness? Are there any other options that a consumer debtor should consider? What other concerns are there here?

The Bankruptcy Reform Act of 1978 favored creditors,as it made it more difficult for debtors to escape from their debts under federal bankruptcy law.

What is the general concept of the fresh start in bankruptcy?

A party can be petitioned into bankruptcy against that party's will.