LAS 261 - Week 4 Notes - Test 1 Flashcards
(35 cards)
4 parts to initiating a BK for the debtor-client
- Information gathering
- Analysis
- Counseling
- Drafting
One piece of info to gather is who is the debtor? This means the (1) and will also require the (2) which is not e-filed. It also includes the debtor’s (3). There is no such thing as (4) in Arizona and (5) are not recognized.
- legal name
- social security
- spouse
- common law marriage
- gay marriages
More info to gather: Where does the debtor currently (1)? What is the debtor’s (2) situation?
- live
2. employment
It’s important to ask what caused the debtor’s (1), which will illuminate alternatives (chapter, etc.). Also important for alternatives is the debtor’s (2).
- financial difficulties
2. financial condition (income, etc.)
More info to gather: What are the debtor’s (1) that are legally owned? Where are they (2). It is important to determine current (3) and even if the assets are in another state, they must be (4).
- assets
- located
- title
- disclosed
It’s important to find out the creditors’ (1) and (2). Even if there is a (3) they must be disclosed, especially because they might (4). Relevant to creditors is whether the debtor has (5).
- names
- addresses
- $0 balance
- dispute the debt
- tried a non-bankruptcy workout (may open the door for negotiation)
It’s important to find out whether the debtor is subject to pending (1) both in Arizona and elsewhere!
- lawsuits
Are the debts the (1)? Are they (2) on anyone else’s? What are the debtor’s (3) and (4)? How will (5) be paid?
- debtor’s debts
- co-signers
- goals
- expectations
- fees
3 things the debtor’s attorney will do
- evaluate the info gathered
- consider altneratives to bankruptcy
- determine whether to recommend BK to the client & formulate a course of action
3 advantages to non-bankruptcy solutions
- can be less expensive
- better received by creditors
- less stigma
4 non-bankruptcy solutions
- negotiation
- consolidation loan
- credit counseling
- assignment for the benefit of creditors
Negotiation may involve discussions with the (1) or the (2) and the creditor whereby the creditor alters the (3). The debtor may receive an (4), a (5) or a combination of both. The debtor must be able to (6). A negotiated agreement is governed by (7)
- debtor
- debtor’s attorney
- terms of the original agreement
- extension of time
- debt reduction
- make some payment towards the debt
- contract law
3 features of a consolidated loan
- does not lower the total debt
- reduces the number of payments a debtor makes each month
- may take longer to pay off and be at a higher interest rate
Credit counseling centers analyze the debtor’s (1) and negotiate with creditors for a (2) the debtor can handle, which is usually (3). They do not (4)–they (5)
- obligations
- payment schedule
- less than what is owed
- lend money
- distribute the debtor’s money to creditors
Assignment for the benefit of creditors is used by (1) in both Chapter (2) and (3) cases. It involves transfer of assets to a (4) to ensure (5). It gives creditors a higher (6) than liquidation and avoids (7). It is covered by (8).
- businesses
- 7
- 11
- third party
- payment of obligations
- return
- bankruptcy
- state statute
(1) is the most popular bankruptcy
- Chapter 7
(1) cannot file Chapter 7 Bankruptcy
Railroads
A trustee is (1) to all Chapter 7 cases and distributes assets according to the (2). Debtors receive a (3) from their (4) debts. Corporations and partnerships (5). Trustees may choose to (6) certain property, such as timeshares
- auto-appointed
- Bankruptcy Code
- discharge
- dischargeable debts
- go out of business
- abandon
Chapter 9 is limited to municipalities–(1), (2) or (3). It is not available to (4).
- political subdivisions
- public agencies (school districts, credit unions
- instrumentalities of the state
- states
Chapter 11 is generally filed by (1) but can be used by (2). (3) can file this (unlike Ch. 11). It requires a (4). There is no (5) of a trustee and the debtor remains a (6). A trustee may be appointed if the (7).
- businesses
- individuals who exceed the Ch. 13 limit
- Railroads
- reorganization plan
- automatic appointment
- debtor-in-possession
- court appoins one (fraud, etc.)
Chapter 12 is for (1), which requires the person to have a certain percentage of the debtor’s income (2). This one also requires a (3).
- Adjustment of Debts of Family Farmer or Family Fisher with Regular Annual Income
- come from fishing or farming
- plan
Chapter 13 is (1). It requires the debtor to be a (2). A (3) is required in this one and debtors/debtor attorneys may negotiate with (4). The (5) distributes according to the plan.
- Adjustment of Debts of Individual with Regular Income
- individual (+spouse, or sole proprietor)
- 3-5 year plan
- secured creditors (unsecured creditors may get nothing)
- trustee
Chapter 15 is (1). It is for (2) who do (3), and it is required that the debtor have (4). It incorporates the (5) into the BK Code. This chapter permits a (6) to seek discovery concerning a debtor’s assets, affairs, rights, obligations and liabilities.
- Ancillary and Other Cross-Border Claims
- foreign companies
- substantial business in the US
- filed for BK in their own country
- Model Law on Cross- Border Insolvency
- foreign representative
Dollar amount increases happen every (1) and are done by the (2)
- 3 years
2. Administrative Office of the US Courts
