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
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.
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.
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.
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.
The Bankruptcy Code uses the term "debtor" to refer to a person who cannot pay his debts.
Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer.
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.
Generally, filing bankruptcy stops the collection activity of 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.
Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her sister. To be valid, the reaffirmation
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.
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.
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.
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.
c. stops only secured creditors from taking any act to collect, assess, or recover a claim against Kathleen that arose before she filed bankruptcy.
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?
a. Yes, claims based on negligence are dischargeable.
Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her sister. To be valid, the reaffirmation
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.
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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 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.
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.
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.
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.