Bankruptcy

Question 1

Secured Transactions

Answer 1

A transaction whereby a Creditor acquires and
maintains an interest in collateral belonging to
Debtor.

Question 2

Types of Collateral:

Answer 2

1. Tangible (Goods)
2. Quasi Tangible (notes, instruments and the like)
3. Intangible

Question 3

Liquidation

Answer 3

The Debtor’s nonexempt property is sold for
cash, the cash is distributed to the creditors
and any unpaid debts are discharged.

Question 4

Automatically Stay

Answer 4

The moment the petition is filed, there exists an
automatic stay or suspension of almost all
litigation and other actions by unsecured
creditors.

Question 5

Chapter 13 Bankruptcy

Answer 5

repay a portion of their debts (high income)

Question 6

Chapter 7 Bankruptcy

Answer 6

wipe out their debts altogether.

Question 7

Pay Advice

Answer 7

any document that provides written evidence of your income

Question 8

The Right to Seize Secured Collateral

Answer 8

In the event of default, the secured party is entitled to take the collateral from the debtor.

Question 9

When is repossession granted?

Answer 9

If taking the collateral cannot be done without causing a breach of the peace, the secured party must use court action.

Question 10

Nondischargeable Debt

Answer 10

type of debt that cannot be eliminated through bankruptcy proceeding. (student loans, most federal, state and local taxes, money borrowed on a credit card to pay those taxes, and child support and alimony)

Question 11

Discharge

Answer 11

After nonexempt property is liquidated and
distributed, the remaining unpaid claims are
discharged and the Debtor gets a fresh start.