Flashcards in Debtor - Creditor Relationships - Bankruptcy - Prebankruptcy Options Deck (24):
What is a chapter 7 bankruptcy?
Straight Bankruptcy or Liquidation.
Action by a creditor for a court-ordered seizure for the taking into custody the debtor's nonexempt property prior to the creditor getting a judgment.
Define artisan's lien.
Lien on personal property for repair, improvement, alteration.
What is a chapter 13 bankruptcy?
Adjustment of Debts of an Individual with Regular Income.
What are the requirements for filing voluntary bankruptcy?
Any individual, partnership, corporation can file. Consumers must undergo credit counseling with nonprofit within 180 days of filing. Need not be insolvent - there are tests for determining eligibility for bankruptcy but insolvency is not required.
List the different types of liens.
Define mechanic's lien.
Lien for work or materials provided on real property.
What are the requirements for involuntary petition?
If there are 12 or more creditors, then 3 creditors with aggregated unsecured debt owed of $15,325 must file (April 2013 figure - changes every three years).
If less than 12 creditors, then any creditor owed $15,325 may file.
Describe how a lienholder can collect on the amount owed.
Through foreclosure of the lien.
What is a chapter 12 bankruptcy?
Adjustment of Debts of a Family Farmer and Fisherman.
How often are the amounts on filing requirements and exemptions for bankruptcies changed?
The amounts on filing requirements, exemptions etc. are set to automatically increase every three years.
Right of judgment creditor to garnish (take a portion of) debtor's wages through direct filing with employer- federal law limits amount that can be garnished to 25% of take-home pay.
What is a chapter 11 bankruptcy?
List the types of property that can be attached.
Real and personal property as well as accounts and receivables.
List the five types (or chapters) of bankruptcy.
List the types of bankruptcy permitting involuntary petitions.
What can a creditor garnish in order to satisfy a judgment?
Wages of the debtor.
List the types of bankruptcy permitting voluntary petitions.
What is a chapter 9 bankruptcy?
Adjustment of Debts of a Municipality.
What is the federal limit for garnishment of wages?
25% of debtor's wages.
Describe the differences between the various chapters of bankruptcy.
Voluntary 7, 9, 11, 12, 13.
Involuntary 7, 11.
Trustee required 7, 12, 13.
What governs bankruptcy laws?
Federal law administered by bankruptcy courts.
What entities are not allowed to file voluntary bankruptcy?
2.Savings (buildings) and loans;
7.Small businesses under SBA. (Their bankruptcies are handled via other sections of the code or by receiverships.)