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Final Exam Flashcards

1
Q

a deed instrument in which a mortgagor conveys all interest in a real property to the mortgagee to satisfy a loan that is in default and avoid foreclosure proceedings

A

Deed-in-lieu of Foreclosure

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2
Q

mandatory counseling to provide basic education on financial management and help the creditor avoid bankruptcy

A

Credit Counseling Requirement

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3
Q

Execution

A

the carrying out of some act or course of conduct to its completion

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4
Q

the deadline set for creditors in a case to file proof of claims. Claims not filed by the bar date may be disallowed or subordinated to other claims

A

Claims Bar Date

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5
Q

When would a court consider appointing a trustee instead of having a debtor-in-possession?

A

The court would appoint a trustee if the debtor has previous fraud, if it is in the interest of the creditors, or as an alternative to converting to a Chapter 7 liquidation case

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6
Q

a loan that is not protected by collateral

A

Unsecured Debt

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7
Q

where two or more bankruptcy cases involving affiliated debtors are ordered to be administered jointly to save administrative costs

A

Joint Administration

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8
Q

three-party contingent liability agreement under which a third-party agrees to be directly or collaterally responsible for the obligation of a first-party to a second-party in case the first-party defaults

A

Guaranty Agreement

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9
Q

Liquidation Proceeding

A

proceeding in which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor’s creditors in satisfaction of their claims

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10
Q

What does a Chapter 13 case do?

A

Reorganizes and adjusts debt

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11
Q

What does a Chapter 9 do?

A

Adjusts debts for a municipality

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12
Q

something pledged as security for repayment of a loan, to be forfeited in the event of a default

A

Collateral

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13
Q

Unsecured Debt

A

a loan that is not protected by collateral

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14
Q

an agreement between a lender and a borrower to give the property to a neutral third party who will serve as a trustee

A

Deed of Trust

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15
Q

additional steps required to be taken in relation to a security interest in order to make it effective against third parties or to retain its effectiveness in the event of default by the grantor of the security interest

A

Perfection

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16
Q

bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code

A

Chapter 7

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17
Q

Purchase Money Security

A

security interest or claim on property that enables a lender who provides financing for the acquisition of goods or equipment to obtain priority ranking ahead of other secured creditors

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18
Q

What is the liquidation test or best interests of the creditors test in reorganization proceedings and how does it work?

A

It is one of thirteen requirements that a plan proponent must satisfy in order to obtain confirmation of its plan of reorganization, guaranteeing that unless it otherwise agrees, each creditor or interest holder will receive at least as much under the plan as it would in a liquidation of the debtor in a chapter 7 case.

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19
Q

a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s)

A

Meeting of Creditors

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20
Q

What is a cramdown/modification of a secured debt?

A

A cramdown can lower the loan balance secured by the collateral and a reduction in the interest rate to be paid

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21
Q

a document filed in a specialized federal court to commence a proceeding to provide a means by which a debtor who is unwilling or financially unable to pay personal debts will satisfy the claims of his or her creditors as they come due

A

Petition

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22
Q

a right to keep possession of property belonging to another person until a debt owed by that person is discharged

A

Lien

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23
Q

an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full

A

Deficiency Judgment

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24
Q

Promissory Note

A

a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand

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25
agreement with a creditor to pay the creditor a debt that could have been discharged in bankruptcy
Reaffirm Debt
26
an unsecured claim entitled to a certain order of preferment and payment under section 507
Priority Claims
27
the writing that a creditor submits as evidence of its claim against the estate
Proof of Claim
28
a document that provides a lender a security interest in a specified asset or property that is pledged as collateral
Security Agreement
29
a court order directing that money or property of a third party be seized to satisfy a debt owed by a debtor to a plaintiff creditor
Garnishment
30
a person appointed by the United States Trustee, an officer of Department of Justice, to represent the debtor’s estate in a bankruptcy proceeding
Bankruptcy Trustee
31
the order in which a debtor should pay an unsecured claim
Priority
32
Priority
the order in which a debtor should pay an unsecured claim
33
Writ of Fieri Facias
a writ of execution after judgment obtained in a legal action for debt or damages for the sheriff to levy on goods of the judgment debtor
34
Insolvency
An incapacity to pay debts upon the date when they become due in the ordinary course of business
35
Judicial lien
lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding
36
Debtor
person liable for a debt
37
Balloon Note
a name given to a promissory note in which repayment involves a balloon payment
38
An incapacity to pay debts upon the date when they become due in the ordinary course of business
Insolvency
39
Perfection
additional steps required to be taken in relation to a security interest in order to make it effective against third parties or to retain its effectiveness in the event of default by the grantor of the security interest
40
a bankruptcy case in which the debtor is an individual with primarily consumer debts
Consumer Bankruptcy Case
41
Meeting of Creditors
a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s)
42
Consolidation
the joining together of two or more bankruptcy cases involving interrelated debtors into one case for joint administration
43
Proof of Claim
the writing that a creditor submits as evidence of its claim against the estate
44
person liable for a debt
Debtor
45
Petition
a document filed in a specialized federal court to commence a proceeding to provide a means by which a debtor who is unwilling or financially unable to pay personal debts will satisfy the claims of his or her creditors as they come due
46
the rearrangement of a debtor’s finances under a court-approved plan as an alternative to liquidation
Reorganization Proceeding
47
Fair Debt Collection Practice Act; FDCPA regulates debt collectors
What is the FDCPA and what type of conduct does it govern?
48
Lien
a right to keep possession of property belonging to another person until a debt owed by that person is discharged
49
Collateral
something pledged as security for repayment of a loan, to be forfeited in the event of a default
50
What does FDCPA mean?
Fair Debt Collection Practices Act
51
Mechanic’s/Materialman’s Lien
security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property
52
a loan that is guaranteed by collateral
Secured Debt
53
Reorganization Proceeding
the rearrangement of a debtor’s finances under a court-approved plan as an alternative to liquidation
54
Mortgage
The consensual security interest in real property granted by a debtor to a creditor that entitles the creditor upon default to take possession of and sell the realty and apply the proceeds to the balance owed
55
Short Sale
a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property
56
What does a Chapter 12 do?
Reorganizes debt for farmers or fisherman with regular annual income
57
a source or amount of income exempted from taxation
Exemption
58
Credit Counseling Requirement
mandatory counseling to provide basic education on financial management and help the creditor avoid bankruptcy
59
Guaranty Agreement
three-party contingent liability agreement under which a third-party agrees to be directly or collaterally responsible for the obligation of a first-party to a second-party in case the first-party defaults
60
Priority Claims
an unsecured claim entitled to a certain order of preferment and payment under section 507
61
Deficiency Judgment
an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full
62
Chapter 7
bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code
63
Disinterested Person
person that is not a creditor
64
proceeding in which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor’s creditors in satisfaction of their claims
Liquidation Proceeding
65
enforceable claim or lien created by a security agreement, or by the operation of law, that secures the fulfillment of a pledge
Security Interest
66
What is the purpose, terms and application for the means test?
The purpose of the means test is to see if the debtor makes under the state median income for the family size and to see if they need to file a Chapter 13 instead
67
What does a Chapter 11 do?
Reorganizes or liquidates for businesses
68
Security Agreement
a document that provides a lender a security interest in a specified asset or property that is pledged as collateral
69
Bankruptcy Trustee
a person appointed by the United States Trustee, an officer of Department of Justice, to represent the debtor’s estate in a bankruptcy proceeding
70
Consumer Bankruptcy Case
a bankruptcy case in which the debtor is an individual with primarily consumer debts
71
a mortgage or other charge on property or assets
Encumbrance
72
Why is there a Chapter 11 debtor-in-possession?
There is a debtor-in-possession for chapter 11 because a business has a lot of inventory and assets that have to be gone through in a certain amount of time
73
lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding
Judicial lien
74
Repossession
the action of retaking possession of something, in particular when a buyer defaults on payments
75
Foreclosure
the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments
76
What is a Chapter 11 debtor-in-possession?
The legal status given a debtor filing a Chapter 11 and the debtor retains possession and control of its assets while reorganizing as well as the right to continue operating the business
77
the prohibition on creditors continuing collection efforts against a debtor that arises automatically upon the debtor’s filing of a bankruptcy petition
Automatic Stay
78
Surrender
the act of relinquishing property to another
79
Security Interest
enforceable claim or lien created by a security agreement, or by the operation of law, that secures the fulfillment of a pledge
80
What is the applicable commitment period for a Chapter 13 debtor and what decides which commitment period governs?
The commitment period is 3-5 years and the debtor must complete the Official Form 122C-1 to determine the applicable commitment period
81
Reaffirm Debt
agreement with a creditor to pay the creditor a debt that could have been discharged in bankruptcy
82
a chapter 7 liquidation case in which there are no assets available for distribution to creditors
No-asset Case
83
security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property
Mechanic’s/Materialman’s Lien
84
Discharge
release from the payment of debts by a person who is bankrupt
85
security interest or claim on property that enables a lender who provides financing for the acquisition of goods or equipment to obtain priority ranking ahead of other secured creditors
Purchase Money Security
86
a name given to a promissory note in which repayment involves a balloon payment
Balloon Note
87
Exemption
a source or amount of income exempted from taxation
88
the carrying out of some act or course of conduct to its completion
Execution
89
an amount of credit extended to a borrower
Line of Credit
90
Joint Administration
where two or more bankruptcy cases involving affiliated debtors are ordered to be administered jointly to save administrative costs
91
Line of Credit
an amount of credit extended to a borrower
92
Business Bankruptcy Case
a bankruptcy case in which the debtor is an entity or individual with primarily business debts
93
a debtor’s right to buy back property that has been repossessed or foreclosed on
Redeem Property
94
The consensual security interest in real property granted by a debtor to a creditor that entitles the creditor upon default to take possession of and sell the realty and apply the proceeds to the balance owed
Mortgage
95
person that is not a creditor
Disinterested Person
96
Encumbrance
a mortgage or other charge on property or assets
97
Deed of Trust
an agreement between a lender and a borrower to give the property to a neutral third party who will serve as a trustee
98
appointed official in federal districts responsible for appointment and supervision of bankruptcy trustees and general oversight of bankruptcy cases in that district
U.S. Trustee
99
Claims Bar Date
the deadline set for creditors in a case to file proof of claims. Claims not filed by the bar date may be disallowed or subordinated to other claims
100
the action of retaking possession of something, in particular when a buyer defaults on payments
Repossession
101
the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments
Foreclosure
102
Deed-in-lieu of Foreclosure
a deed instrument in which a mortgagor conveys all interest in a real property to the mortgagee to satisfy a loan that is in default and avoid foreclosure proceedings
103
a bankruptcy case in which the debtor is an entity or individual with primarily business debts
Business Bankruptcy Case
104
Automatic Stay
the prohibition on creditors continuing collection efforts against a debtor that arises automatically upon the debtor’s filing of a bankruptcy petition
105
release from the payment of debts by a person who is bankrupt
Discharge
106
No-asset Case
a chapter 7 liquidation case in which there are no assets available for distribution to creditors
107
certain disputes defined by Bankruptcy Rule 7001 that arise in a bankruptcy case and are resolved by the procedures governing s formal lawsuit
Adversary Proceeding
108
Secured Debt
a loan that is guaranteed by collateral
109
a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property
Short Sale
110
Liquidation proceeding and no asset cases
What is a Chapter 7 do?
111
Garnishment
a court order directing that money or property of a third party be seized to satisfy a debt owed by a debtor to a plaintiff creditor
112
Adversary Proceeding
certain disputes defined by Bankruptcy Rule 7001 that arise in a bankruptcy case and are resolved by the procedures governing s formal lawsuit
113
a writ of execution after judgment obtained in a legal action for debt or damages for the sheriff to levy on goods of the judgment debtor
Writ of Fieri Facias
114
a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand
Promissory Note
115
What debts are not dischargeable?
tax debt, student loans, domestic support obligations, fines owed to govt, unlisted debts, debts from fraud, last minute purchace of luxury goods
116
the joining together of two or more bankruptcy cases involving interrelated debtors into one case for joint administration
Consolidation
117
Redeem Property
a debtor’s right to buy back property that has been repossessed or foreclosed on
118
U.S. Trustee
appointed official in federal districts responsible for appointment and supervision of bankruptcy trustees and general oversight of bankruptcy cases in that district
119
the act of relinquishing property to another
Surrender

bankruptcy (1 decks)

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