Exam 39: Bankruptcy

Margaret has $3,200 cash after selling off her television, stereo, and personal computer.She has debts of $4,800 owing to the following creditors: Anna - $900 Bob's Shop - $1500 Hyatt's - $2100 Jones - $300 If they all agree to a composition agreement, how much will Hyatt's be able to collect?

MATCHING Part VIII Matching Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. -composition

Miriam files for bankruptcy on March 18.On August 14 she receives $10,000 as beneficiary of a life insurance policy.This $10,000 will not be included in her bankruptcy estate.

MATCHING Part VIII Matching Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. -collateral

More than 99 percent of all bankruptcy petitions are filed voluntarily.

An employee of a bankrupt company could be able to receive up to $10,950 in unpaid wages and up to $10,950 in contributions to employee benefit plans, for a total of $21,900 before any money is paid to a consumer to compensate for deposits paid to the company for goods which were never delivered because of the company's going bankrupt.

In a Chapter 11 or 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

A Chapter 13 plan may be modified after confirmation only at the request of the debtor.

Chapter 7 applies to all debtors, with the exception of railroads, insurance companies, banks, savings and loan associations, homestead associations, and credit unions.

Bankruptcy legislation serves a dual purpose.What are these purposes?

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include:

MATCHING Part VIII Matching Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. -secured claim

United States trustees:

All of the following are dischargeable in bankruptcy EXCEPT:

Garnishment is only a post-judgment remedy.

Under exemptions in the Bankruptcy Code, a debtor may keep both $20,200 in equity in a residence and $3,225 in equity in a motor vehicle.

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have?

Under Chapter 11, a class that is not impaired under a plan is deemed to have accepted the plan.