Bankruptcy Flashcards

Question

What can limit the Texas Homestead?

Answer 1

1). If the debtor is convicted of a felony showing that the filing of the bankruptcy was an abuse or the debt is from violating a law, fraud as a fiduciary, RICO, or any criminal act, willful tort, or reckless conduct resulting in physical injury limits the homestead to 155,675$.2). If the debtor hasn't had the homestead more than 3.3 years, then it's limited to 155,675$, but the previous homestead amount can still be rolled into the new homestead.3). If the debtor converts non-exempt assets into the homestead to defraud or hinder a creditor in the previous 10 years, that amount is not Homesteaded

Answer 2

It's determined on whether the secured creditor creates and perfects before the lien is created (or levied?)

Answer 3

1). hypothetical lien creditor2). hypothetical bona fide purchaser of real estate3). Claiming rights over other creditors4). Power over fraudulent transfers.

Answer 4

The truste is treated as having a hypothetical judicial lien on the date of the bankruptcy filing. He can AVOID any property interest he has priority over, not just gets priority over them. So an unperfected secured creditor become unsecured at the time of bankruptcy.

Answer 5

The trustee is treated like a bona fide purchaser. Like if a mortgage is unrecorded at the time of bankruptcy, then the trustee's rights will trump it.

Answer 6

The trustee can avoid any transfer that would also be voidable under nonbankruptcy law by an actual secured creditor

Answer 7

If a transfer is made with fraudulent intent under state law, then a trustee can avoid it. The trustee can use state fraudulent transfer law or bankruptcy code transfer law, but state s usually have longer SOL's.

Answer 8

One made with actual intent to hinder, delay, or defraud an entity that the debtor was indebted to OR Now made for less than equivalent value ana). the debtor was or became insolvent as a resultb). the debtor was engaged or about to engage in business with a small amount of capitalc). the debtor intended to take on more debts than he could pay, or d). the debtor made the transfer for the benefit of an insider.

Answer 9

they are usually valid against the trustee. (like mechanics, landlords, and garagemen)

Answer 10

This is only available in bankruptcy. It is available when1). there is a transfer to or for the benefit of a creditor (like cash or a security interest)2). The debtor is insolvent (with a presumption that he is insolvent for the 90 days prior to the bankruptcy)3). There is an antecedent debt in existence befoer the transfer (unless the perfection of the security interest occurs within 30 days of the initial grant, then it is not an antecedent debt)4). Within 90 days of filing a bankruptcy petition, or 1 year if the transfer is to an insider5). The creditor receives more than he would be in bankruptcy. Tip: fully secured creditors will never have a preference, while undersecured creditors can.

Answer 11

1). The transfer is intended as a contemporaneous exchange for new value2). PMSI in new value perfected within 30 days3). Statutory liens4). Domestic support obligations5). transfers by consumer debtors less than 600$, 6,225 for non-consumer debts6). transfers made as part of an alternative repayment schedule

Answer 12

The trustee has the power to assume, reject, or assign executory contracts upon approval of the bankruptcy courts despite contractual clauses prohibiting them. It may reject the contract when it is a hindrance to an effective reorganization plan It can assign when there is adequate asssurance that the assignee can give adequate assurance of future performance

Answer 13

First secured creditors, then some priority unsecured claims, then general unsecured claims

Answer 14

1). Domestic support obligation2). Administrative expenses3). Claims accuring after filing but before the order for relief4). Wage claims earned within 180 days of the petition and up to 12,475$5). Contributions to employee benefit plans within 180 days of filing and up to 12,475$6). Claims against operators of grain or fish storage up to 6,125$7). Consumer deposits to a seller of things for consumer use8). Tax claims9). Insured Federal depository Institutions for deficiencies in the amount of capital the debtor should maintain10) personal injuries or death caused by drugs or alcohol

Answer 15

On a pro rata share of all the remaining assets

Answer 16

An offense by the debtor that will prevent the discharge of any of his obligations. They include:1) the debtor is not an individual (entities dissolve rather than receive a discharge)2). Fraudulent trnsfers or concealment of property within one year prior to the bankruptcy with the intent to hinder, defraud, or delay creditors3). Failure to keep books and records4). Bankruptcy crime (making a false oath or account, using a false claim, giving or receiving a bribe, or withholding documents)5). Failure to explain a loss of assets6) Refusal to obey or answer questions7). Improper conduct in an insider's case.8). A prior discharge from Chapter 7 or 11 within the last 8 years9). A prior Chapter 13 discharge within the last 6 years unless he plans to do at least 70% of the prior case's claims.10). Not completing personal financial management after filing11). Written waiver of relief12). Bad acts under the Homested exemption.

Answer 17

These are specify debts that won't be discharged:1). Tax claims entitiled to priority2). debts obtained by fraud (like lying on a loan app)3). luxury goods obtained with over 650$ total to a single debtor within 90 days of the filing4). Unscheduled (unlisted) debts5). Debts for embezzlement, larceny, and fiduciary's fraud6). domestic support obligations7). Wilfull, malicious property/persons8). Liability for death or personal injury for drunken or drugged operation of a motor vehicle9). Fines to government10). Student loans11). Debts from third parties to pay taxes12). Property settlement from divorce or separation13). HOA fees14). Restitution for a federal crime15). Debts from violation of a state or federal securities law...

Answer 18

The debtor can choose to reaffirm the debts even though they would have been discharged. 1). The reaffirmation must be done before the granting of the discharge,2).The creditor must give prescribed disclosures including the ability to rescind for 60 days3). File the agreement with the court4). A reaffirmation hearing with the court where the court5). If a consumer debtor doesn't have counsel, there is no undue hardship and it is in the debtor's best interests.