Business Law 7.0,9.0,11.0,13.0c

Question 1

where does one file for bankruptcy

Answer 1

in bankruptcy court, which is within (but technically aside from) the district court

Question 2

how are funds distributed when you liquidate unnecessary assets after filing for bankruptcy

Answer 2

distributed proportionately to creditors

Question 3

do student loans go away after filing for bankruptcy

Answer 3

no

Question 4

why do people file for bankruptcy

Answer 4

to encourage banks to be more careful about who they lend to and to give people second chances

Question 5

what causes people to file for bankruptcy?

Answer 5

divorce
medical bills
child expenses
accidents / injury

Question 6

can you file for bankruptcy more than once?

Answer 6

yes but you have to wait 7 years in between filing

Question 7

what is reorganization

Answer 7

300k per year but you still cant keep up with your bills? –> a person or company in a bankruptcy reorganization repays their debts over a 60 month period by taking their excess cash flow each month and applying it to their debts proportionally. Whatever debts remain after the 60 month period remain gets wiped and discharged.

Question 8

negotiable instrument

Answer 8

exchanged for money (ie: for money)