Under the federal Bankruptcy Code, is a trustee required for Ch 7, 11, and 13?
A trustee is required for Ch 7 and 13.
A trustee is not required for Ch 11.
What two groups may file voluntary bankruptcy, but may not be the subject of involuntary bankruptcy?
- Nonprofit chartiable organizations
How many creditors must join in filing a petition to commence an involuntary bankruptcy case:
- If the debtor has 12 or more creditors?
- If the debtor has fewer than 12 creditors?
- If the debtor has 12 or more creditors, at least 3 creditors with aggregated unsecured claims of at least $15,325 must join in the petition
- If the debtor has fewer than 12 creditors, any one creditor with an unsecured claim of at least $15,325 may file the petition alone.
What is the automatic stay?
- when bankruptcy proceedings commence, a creditor may not pursue remedies against the debtor or his assets
- the automatic stay goes into effect the moment a bankruptchy petition is filed
Under the federal Bankruptcy Code, what elements are necessary to establish a preferential payment?
A preferential payment is:
- a transfer made to or for the benefit of a creditor
- on account of an antecedent debt of the debtor
- made within 90 days prior to the filing (one year if the creditor is an insider, such as an officer of the debtor organization or a close relative of the debtor)
- made while the debtor was insolvent, and
- results in the creditor receiving more than the creditor would have received under the Bankruptcy Code
Certain debts of an individual are not discharged under Chapter 7 and 11. Give Examples
- Willful and malicious injury
- Alimony, Maintenance, Support and Settlement from Marital Separation
- Debts incurred by Fraud
- Fines and Penalties
- Taxes due within 3 years of filing
- Embezzlement, Larceny, and Fiduciary's Fraud
- Educational Loans
- Debts undisclosed in the bankruptcy petition
What is the hierarchy for paying unsecured priority claims in a bankruptcy proceeding?
SAG WEG CTI
- Support obligations to spouse and children
- Admin fees
- Gap creditors
- Wages up to $12,475 if earned within 180 days
- Employee benefit plan payments up to $12,475 (reduced by wage claims) if earned within 180 days
- Grain farmers' and fishermen's claims against storage/processing facilities up to $6,150
- Consumer deposits up to $2,775
- Injuries caused by intoxicated driving
What is Chapter 7 Bankruptcy?
What is Chapter 11 Bankruptcy?
What is Chapter 13 Bankruptcy?
Adjustment of Debts of Individuals with Regular Income
In a Chapter 11 reorganization, is a trustee usually appointed?
No, the debtor usually remains in possession of the estate's assets.
The order for preliminary relief is the principal door to bankruptcy proceedings for a foreign door. True or False?
False, The main door is a petition for recognition, which is filed by the foreign representative.
List at least six grounds for denial of discharge.