Bankruptcy 3 of 3 (49)

Question 1

Priority Claims

Answer 1

laims that will be paid, in order and subject to certain limitations, prior to the claims of remaining unsecured (General) creditors, including (STOP-IT-Drunk driver):

• Support and alimony payments;
• Trustee, attorney and other costs of administering the bankruptcy;
• Claims of creditors Owed after the filing of the bankruptcy petition;
• Payroll costs up to certain limits;
• Individual consumer deposits up to certain limits;
• Taxes for which the statute of limitations has not expired (3 years); and
• Drunk driver injury claims.

Question 2

Exceptions to Discharge

Answer 2

Debts that are not discharged as a result of bankruptcy and remain obligations of the debtor, including obligations for alimony or child support; credit card purchases of luxury goods, large cash advances, and auto loans; student loans; loans obtained through false representation; debts that were omitted by the debtor when disclosing all obligations; taxes; obligations resulting from violations of securities laws under Sarbanes-Oxley; and drunk driver injury claims.

Question 3

Denial of Discharge

Answer 3

The debtor not receiving relief and remaining liable for all obligations as a result of inadequate books and records, including the destruction of records; refusal to provide information as to the location of assets; committing a bankruptcy offense, such as withholding records or refusing to obey a court order; having received a discharge within a specified period of time; or a fraudulent transfer.