which of the following is a primary goal of the bankruptcy code course hero

The central purpose of the Bankruptcy Code is to provide a procedure by which certain insolvent debtors can reorder their affairs, make peace with their creditors, and enjoy ‘a new opportunity in life with a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. 1991 – Grogan v. Garner, 111 S.Ct. 654

Full Answer

How are assets distributed to creditors under the Bankruptcy Code?

Now up your study game with Learn mode. Under all chapters of the Bankruptcy Code, most of the debtor's assets are distributed to creditors and the debtor has no obligation to share future earnings with creditors.

Who can propose a plan of reorganization in Chapter 11 bankruptcy?

In Chapter 11 bankruptcy, only the debtor may propose plans of reorganization. Creditor claims are divided into classes, and the highest class must be satisfied in full before going to the next category. The Bankruptcy Code uses the term "debtor" to refer to a person who cannot pay his debts.

What is Chapter 13 of the Bankruptcy Code?

Chapter 13 of the Bankruptcy Code will allow her to reorganize her debt while she keeps most of her assets. Generally, filing bankruptcy stops the collection activity of creditors. Brad was having financial difficulties and thought bankruptcy might be in his future.

What is the start of the bankruptcy process?

The start of the bankruptcy process is a. the submission of a plan of repayment. b. the bankruptcy court's issuance of an order for relief. c. a meeting of creditors.

What does "debtor" mean in bankruptcy?

The Bankruptcy Code uses the term "debtor" to refer to a person who cannot pay his debts.

Why can't Francesca serve as a trustee in bankruptcy?

Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer.

What is Peggy's debt?

Peggy's credit card debts are mounting as her costs of insurance and fuel have dramatically increased and her income, from sporadic freelance jobs, has dropped. Chapter 13 of the Bankruptcy Code will allow her to reorganize her debt while she keeps most of her assets.

Does bankruptcy stop collection?

Generally, filing bankruptcy stops the collection activity of creditors.

Does bankruptcy have to share future earnings with creditors?

Under all chapters of the Bankruptcy Code, most of the debtor's assets are distributed to creditors and the debtor has no obligation to share future earnings with creditors.

Does Ramona have a bankruptcy?

Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her sister. To be valid, the reaffirmation

Can bankruptcy trustees bring a car back into Brad's estate?

The bankruptcy trustee can void the transfer and bring the car back into Brad's estate for the purpose of providing assets for Brad's creditors. true. Bankruptcy is regulated by federal law. true. Chapter 7 bankruptcy petitions may only be filed voluntarily.

What is the start of the bankruptcy process?

The start of the bankruptcy process is#N#a. the submission of a plan of repayment.#N#b . the bankruptcy court's issuance of an order for relief.#N#c. a meeting of creditors.#N#d. the appointment of a trustee.

Who has the authority to approve a reorganization plan?

c. Only the bankruptcy court has the authority to confirm or reject the reorganization plan. Creditors do not have a right to vote on the plan.

How does a reorganization plan get confirmed?

a. A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan.

What does c. stop?

c. stops only secured creditors from taking any act to collect, assess, or recover a claim against Kathleen that arose before she filed bankruptcy.

Does Andy's business pay its debts?

Andy's business is not able to pay its debts, and the prospects for its finances to improve are slim. Andy decides not to continue the business. In this case, Andy should file a voluntary petition for which type of bankruptcy?

Is a claim based on negligence dischargeable?

a. Yes, claims based on negligence are dischargeable.

Does Ramona have a bankruptcy?

Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her sister. To be valid, the reaffirmation

What is the purpose of bankruptcy court?

the bankruptcy court's issuance of an order for relief. to preserve as much of the debtor's property as possible. to divide the debtor's assets fairly between the debtor and the creditors. to divide the debtor's assets fairly among the creditors.

What chapter is Bus 115?

Start studying Chapter 16 BUS 115. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

How many creditors can a debtor have?

The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors. If the debtor has fewer than 12 creditors, any single creditor or group can file a petition

How many creditors can a Chapter 7 petition have?

The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors. If the debtor has fewer than 12 creditors, any single creditor or group can file a petition. The order for relief is the final discharge in a Chapter 7 case.

How long does it take to file a Chapter 7 claim?

90 days. Generally, a creditor who receives notice must file a claim within: 90 days. Administrative expenses would include all EXCEPT: creditors expenses. To force an involuntary Chapter 7 in a situation where there are 12 unsecured creditors, the number of creditors necessary to file would be: three creditors.

What is the purpose of a debtor's property?

to preserve as much of the debtor's property as possible. to divide the debtor's assets fairly between the debtor and the creditors. to divide the debtor's assets fairly among the creditors.

How long does it take for Irene to get discharged from bankruptcy?

Irene received a discharge under a Chapter 7 bankruptcy. She cannot receive another discharge under Chapter 7 for at least: eight years after the prior filing.