Bankruptcy Chapter 17 Flashcards

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Questions and Answers

What is an arrangement with creditors?

A person who is unable to pay her debts

A hold that bars creditors from debt collection

A proceeding also called a composition (correct)

Federal bankruptcy legislation

What are assets?

Property of any value.

An automatic stay bars creditors from debt collection efforts against debtors after a bankruptcy petition is filed.

True

Define bankrupt.

A person who is unable to pay her debts as they come due. Signup and view all the answers

What is bankruptcy?

The circumstances of a person who is unable to pay their debts as they come due. Signup and view all the answers

What is the Bankruptcy Abuse Prevention Consumer Act?

A significant overhaul in bankruptcy enacted in 2005. Signup and view all the answers

What does the Bankruptcy Code refer to?

Federal bankruptcy legislation. Signup and view all the answers

What are bankruptcy courts?

Federal courts that hear and determine only bankruptcy cases. Signup and view all the answers

Define bankruptcy estate.

All of the property of the debtor at the time the bankruptcy petition is filed. Signup and view all the answers

What is the role of a bankruptcy judge?

A judge who specializes in bankruptcy cases. Signup and view all the answers

What is a bankruptcy petition?

A request filed with the court to initiate a bankruptcy process. Signup and view all the answers

What are bankruptcy proceedings?

Any proceedings under the Bankruptcy Code. Signup and view all the answers

Define bankruptcy trustee.

An individual appointed to manage a bankruptcy case. Signup and view all the answers

What is a bond in bankruptcy terms?

A written instrument that evidences a debt. Signup and view all the answers

What is Chapter 11?

A bankruptcy proceeding that allows the debtor to continue business operations until a reorganization plan is approved. Signup and view all the answers

Define a Chapter 7 proceeding.

A straight bankruptcy conducted under Chapter 7 of the Bankruptcy Code. Signup and view all the answers

What characterizes Chapter 13 bankruptcy?

An individual debtor who is a wage earner files a repayment plan acceptable to creditors. Signup and view all the answers

What is Chapter 12 for bankruptcy?

Focuses on debts of family farmers or fishermen with regular income. Signup and view all the answers

What is a composition with creditors?

An agreement where creditors accept less than the owed amount for prompt payments. Signup and view all the answers

Who are creditors?

Persons to whom a debt is owed by a debtor. Signup and view all the answers

What is a creditors beneficiary?

A creditor who is the beneficiary of a contract made with a third person. Signup and view all the answers

What is a creditors' meeting?

The first meeting of creditors of a debtor to allow claims and elect a trustee. Signup and view all the answers

Who is a debtee?

A person who lends to a debtor. Signup and view all the answers

Define a debtor.

A person who owes money to another person. Signup and view all the answers

What is a debtor in possession?

A debtor who continues to operate their business during reorganization under bankruptcy court. Signup and view all the answers

What is a discharge in bankruptcy?

The release of a debtor from the obligation to pay, pursuant to bankruptcy proceedings. Signup and view all the answers

What does dismissal mean in bankruptcy?

The release of the debtor's case from the court. Signup and view all the answers

What are exemptions in bankruptcy?

Earnings and property allowed to be retained by a debtor free from claims. Signup and view all the answers

What does it mean to forfeit?

To lose something as a result of default or neglect. Signup and view all the answers

What is a fraudulent conveyance?

Transfer of property intended to defraud creditors. Signup and view all the answers

What is garnishment?

A legal process to withhold a portion of earnings for debt payment. Signup and view all the answers

What is a general creditor?

A creditor who does not have a specific lien or claim on any asset. Signup and view all the answers

What is a homestead exemption?

A type of exemption protecting a primary residence from creditors. Signup and view all the answers

Study Notes

Bankruptcy Overview

Bankruptcy provides legal protection for individuals unable to meet debt obligations.
Different chapters exist to address various debtor situations and types, such as Chapter 7 and Chapter 13.

Key Terms and Definitions

Arrangement with Creditors: A court-approved plan allowing a debtor to manage failing finances without being insolvent.
Assets: Any property considered valuable in the eyes of the law.
Automatic Stay: An immediate halt on collection efforts imposed once a bankruptcy petition is filed.
Bankrupt: Legal status of an individual unable to pay debts as they become due.
Bankruptcy: The state of being financially unable to fulfill debt obligations.

Legislative Framework

Bankruptcy Abuse Prevention Consumer Act: A 2005 reform that made bankruptcy proceedings less favorable for debtors compared to earlier laws.
Bankruptcy Code: Encompasses federal laws governing bankruptcy, with significant revisions enacted since 1800.

Court System

Bankruptcy Courts: Specialized federal courts that handle bankruptcy cases exclusively.
Bankruptcy Judge: A judge responsible for overseeing bankruptcy cases and proceedings.

Bankruptcy Types

Chapter 7: Straight bankruptcy that involves liquidation of assets.
Chapter 11: Allows business debtors to continue operations while formulating a reorganization plan.
Chapter 13: For wage earners providing a repayment plan over three to five years.
Chapter 12: Tailored for "family farmers" and "family fishermen" to repay debts over three to five years with streamlined processes.

Financial Mechanisms

Bankruptcy Petition: Document filed in bankruptcy court to initiate proceedings.
Bankruptcy Estate: Total property owned by the debtor at the time the bankruptcy petition is filed.
Composition with Creditors: An agreement to pay creditors a reduced amount in exchange for settling debts.

Creditor Relationships

Creditors: Individuals or entities owed money by the debtor.
Creditors' Meeting: A required meeting for creditors to discuss claims, scrutinize the debtor, and elect a trustee.
Debtor in Possession: A debtor who continues to run their business while under bankruptcy court protection.

Other Important Terms

Discharge in Bankruptcy: Legal release from certain debts post-proceedings.
Exemptions: Specific assets a debtor can retain despite bankruptcy.
Garnishment: Legal process for creditor claims on a debtor's earnings or property.
Fraudulent Conveyance: The illegal transfer of property to evade creditors.

These notes provide a concise overview of critical concepts and terms related to bankruptcy procedures under Chapter 17.

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Test your knowledge on key terms related to Bankruptcy Chapter 17 with these flashcards. Each card features a term along with its definition, helping you to better understand bankruptcy proceedings and terminology. Perfect for students or anyone seeking to learn about bankruptcy practices!