Deck 31 Flashcards Preview

Regulation > Deck 31 > Flashcards

Flashcards in Deck 31 Deck (20):
1

What chapters of bankruptcy may be voluntary or involuntary?

Chapter 7 or 11 (Ch. 13 is voluntary only)

2

What chapter of bankruptcy is voluntary only?

ch. 13

3

Under voluntary cases, who files?

The debtor files; automatic order for relief

4

Under involuntary cases, who files?

Unsecured creditor; does not constitute an order for relief

5

Who may petition a debtor involuntarily into bankruptcy? (Kind of creditor and amount)

Unsecured, undisputed debt; Creditors must owe at least $15,325

6

Power of fraudulent transfer

Trustee can set aside set aside fraudulent transfers made within 2 years of the filing date

7

Preferential payment in Bankruptcy is (purpose to prevent one creditor being preferred over other):

1) Transfer made to or for the benefit of a creditor; 2) on account for an antecedent debt; 3) made within 90 days of filing the petition; 4) creditor receives more than the creditor would have received under the bankruptcy code

8

Something not considered a preference

Payment to a fully secured creditor

9

What debts will not be discharged by a bankruptcy? (WAFTED)

Willful and malicious injury, Alimony, Fraud, Taxes, Educational Loans, and Debts undisclosed

10

Assets of an estate are distributed in the following order:

1) secured creditors; 2) priority creditors; and 3) general creditors who filed on time

11

Taxes that can be claimed as itemized deductions include:

Real estate tax, income tax, and personal property tax (ad valorem tax on car)

12

Education loan interest is what kind of adjustment?

Adjustment for AGI limited to $2500

13

Treatment for Municipal bond income

Not included in gross income

14

Statute of limitations for fraud or filing false tax returns

No limitation

15

Rights that a surety has against the principal debtor

Exoneration, subrogation (step into the shoes of the debtor), and reimbursement

16

Defenses of a Surety (CPRS)

Creditor acts in bad faith; payment and tender of payment; release of principal debtor; and surety's incapacity or bankruptcy

17

No defense situations for a surety

Principal's fraud or duress upon surety; incapacity of principal; and bankruptcy of principal

18

Creditors' composition

Agreement between the debtor and at least 2 creditors that the debtor pays the creditors less than their full claims in full satisfaction of their claims

19

Judicial lien

Property in the hands of the debtor

20

Garnishment

Property in the hands of a third party