Bankruptcy Chapter 17 Flashcards

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.

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!