Flashcards in Debtor - Creditor Relationships - Bankruptcy - Bankruptcy Process Deck (16):
Describe the first creditors' meeting.
Called by the U.S. Trustee on behalf of the Court.
List the basic duties of a bankruptcy trustee.
1.Collect property and reduce it to money;
2.Be accountable for property and make a final report;
3.Investigate financial affairs of debtor and creditor's claims;
4.Furnish information and reports to interested parties and domestic-support creditors;
5.Review all filings by debtor and a statement whether the filing is an abuse under the means income test.
List the duties of the debtor.
1.List all creditors;
2.Schedule of assets;
3.Schedule of income;
4.Other required financial information.
An individual or business which has a close relationship with the debtor.
What is the role of debtor at creditor's meeting?
Appear to testify about assets and debts.
List the voidable preferences in bankruptcy.
1.Property transferred by fraud, duress, undue influence, mistake;
3.Transfers to insiders;
4.Transfer in the 90 days preceding the bankruptcy;
5.Transfers to creditors while insolvent (presumed insolvent for 90 days prior to filing). Also applies to security interests granted.
What is the time limit for including inheritances in a bankrupt's estate?
The bankrupt must have the right to receive the inheritance before the bankruptcy or within 180 days of declaration.
Who can claim exemptions in a bankruptcy?
Only individuals, not partnerships or corporations, can claim exemptions.
Define "automatic stay."
Order issued by court that stops creditors from collecting debt once a petition is filed.
List the actions not stayed by a bankruptcy petition.
1.Criminal prosecution of the debtor;
2.Collection of child support and/or alimony;
4.HUD's right to foreclose under National Housing Act;
5.Investigations by a securities regulatory agency.
Define debtor's estate.
All property held at commencement (and for 180 days after) plus appreciation (except employee benefit contributions) and property reacquired by trustee (voidable transfers).
Describe the federal homestead exemption for bankruptcy.
2.Debtor must have domiciled in the state for two years;
3.Applies to property acquired within 3.5 years of filing for bankruptcy.
What are the special responsibilities of consumers?
1.Must have had credit counseling;
2.Must meet the means test;
3.Dismissal of petition for abuse if consumer debtor has the means to pay according to code calculations of income.
What are the end results of a creditor knowingly violating a stay?
1.Constitutes a Crime;
2.Creditor liable for costs, actual and possibly punitive damages, attorney fees.
List the exceptions to voidable preferences.
1.Contemporaneous bills: utilities, rent;
2.Ordinary course payments: monthly installment payments (mortgages; vehicle payments).