chap 5 bankruptcy

Question 1

creditors

Answer 1

the bankruptcy code defines a creditor as any entity having a claim (right to payment) against the debtor that arose at the time or of before the order for relief

Question 2

proofs of claim

Answer 2

must be filed in a timely manner
the following claims are not allowed: it is unenforceable against the debtor or his property, it is for an unmatured interest, it may be offset by a debt owed the debtor, or it is for inside/attorney services that are overvalued

Question 3

secured claims

Answer 3

banked by a lien on the debtors property

Question 4

priority of claims

Answer 4

all secured claims are paid first, with the remaining assets distributed among creditors with unsecured claims according to their priority

Question 5

order of priority

Answer 5

1. domestic support obligations owed to a spouse, former spouse or child of the debtor
2. expenses of administration of the debtors estate (court fees, lawyer fees)
3. gap creditors (arising in the ordinary course of business after commencement of the case but before either the earlier of appointment to the trustee or the order for relief) **doesnt apply for voluntary bankruptcy
4. wages, salaries, or commissions earned within 180 days of filing or date of cessation of business, which ever comes first, up to $12,475 per employee
5. contributions to employee benefit plan up to $12,475 per employee
6. grain farmers or fisherman claims against a debtor who operates a storage facility or a fish produce storage or processing facility up to $6,150
7. consumer deposits up to $2775 (money deposited for living expenses or products or services for personal, family or household use)
8. most tax claims
9. personal injury and death claims arising from intoxicated driving/operation of a motor vehicle, aircraft or vessel

Question 6

non priority claims

Answer 6

any money left after satisfying secured creditors and the 9 priority claims is used t satisfy claims of general unsecured creditors that timely filed their claims

Question 7

debtors duties

Answer 7

under the bankruptcy code, the debtor must file a list of creditors, a schedule of assets and liabilities, and a statement of financial affairs.

in any case in which a trustee is serving, the debtor must cooperate with the trustee and surrender to the trustee all property of the estate and all records relating to property of the estate

Question 8

debtors exemptions

Answer 8

certain property is exempt from bankruptcy proceedings

1. 22975 equity in a residence
2. 3675 equity in one car
3. 575 for any particular household furnishings, household goods, wearing apparel, appliances, books, animals, crops or musical instruments used primarily for personal, family o household use
4. jewelry up to 1550
5. any property up to 1225 plus 11500 of any unused amount of the first exemption
6. tools of a trade or professional books up to 2300
7. unmatured life insurance contracts with an value, in accrued dividends or interest, up to 12250
8. professionally prescribed health aids
9. social security, veterans and disability benefits
10. unemployment compensation
11. alimony and support payments, including child support
12. payments from pension, profit sharing and annuity plans
13. payments from an award under a crime victims reparation law, a wrongful death award and up to 22975, not including compensation for actual pecuniary loss, from personal injury award
14. tax exempt retirement accounts (iras and roth iras capped a 1245475 per person)

Question 9

discharge

Answer 9

is granted, a discharge relieves the debtor from liability for dischargeable debts. several things are not dischargeable

luxury goods
taxes
debts incurred by fraud
student loans
undisclosed debts