Bankruptcy

Question 1

Provides for the general administration of debtor’s assets by a court applointee (a receiver) for benefit of all parties

Answer 1

Receivership

Question 2

Provides a method for protecting creditors’ rights and granting the debtor relief from his/her indebtedness

Answer 2

Bankruptcy

Question 3

The process of turning the majority of the debtor’s assets into cash to pay debts

Answer 3

Liquidation

Question 4

Bankruptcy filing in which debtor liquidates assets, except exempt assets, to pay creditors

Answer 4

Chapter 7 (a.k.a. “liquidation” or “straight bankruptcy”)

Question 5

Bankruptcy in which the debtor reorganizes debts to pay creditors that is primarily used by businesses

Answer 5

Chapter 11

Question 6

Bankruptcy in which debtor reorganizes debts to pay creditors that is primarily used by individuals

Answer 6

Chapter 13

Question 7

A bankruptcy petition that is a formal request by the debtor for an order of relief

Answer 7

voluntary bankruptcy

Question 8

Bankruptcy filing in which a petition is filed by creditors requesting an order for relief

Answer 8

Involuntary bankruptcy

Question 9

Property either presently owned by the debtor as of the filing date or owed to the debtor by third parties that can be recovered by trustee

Answer 9

Property of the estate

Question 10

Property that does not go to the estate in a bankruptcy filing (i.e. are not exempt frm paying these)

Answer 10

Exempt property

Question 11

1.legal claim on somebody’s property: the legal right to keep or sell somebody else’s property as security for a debt

Answer 11

Lien

Question 12

A claim against specific property by a person claiming it ot be his/hers–generally turned over to claimant

Answer 12

Reclamation

Question 13

Claims made by a beneficiary for trust property whenthe trustee is bankrupt

Answer 13

Trust claim

Question 14

Act set forth to amend various partys of the US Bankruptcy Code including consumer and business bankruptcies

Answer 14

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Question 15

A group of unsecured creditors who essentially function as teh bankruptcy trustee in chapter 11 cases

Answer 15

Creditor committee

Question 16

After debtor completes bankruptcy, debtor is relieved of all previous debt except debts that are nondischargeable; allows debtor to get a fresh start

Answer 16

Discharge

Question 17

The debtor’s assets that re used to pay the creditors

Answer 17

Estate

Question 18

A party who has a close relationship with the debtor–transactions with these people are examined by the trustee for 1 year prior to filing to see if preferential transfers

Answer 18

Insiders

Question 19

Granted, in most cases, to the debtor upon the filing of hte bankruptcy petition; allows debtors to stop paying creditors until the bankruptcy can be finalized

Answer 19

Order for relief

Question 20

When the debtor provides payment or security to a creditor, which would allow creditor to collect more than the creditor wold have collected under Chapter 7 bankruptcy; if such a transfer took place 90 days prior to filing, the trustee may set the transaction aside to assure all creditors are treated fairly

Answer 20

Preferential transfer

Question 21

When a debtor voluntarily chooses to repay a debt that otherwise would be fully discharged under the Bankruptcy Code

Answer 21

Reaffirmation

Question 22

A debtor retains assets, as opposed to liquidating the assets, and agrees to pay creditors out of future earnings under Chapters 11 or 12 of the Bankruptcy Dode

Answer 22

Reorgabnization/ rehabilitation

Question 23

A court order that prevents further collection actions by creditors; is issued upon the filing of the bankruptcy petition, but does not apply to family law issues

Answer 23

Stay

Question 24

Individual who preside sover the bankruptcy estate and organizes the estate for the court–determines what hte assets and liabilities of the estate are

Answer 24

Trustee