Bankruptcy Chapter 5 Flashcards

Questions and Answers

What is abandoned property?

Property that is managed by the trustee

Property of the estate that the trustee decides not to administer (correct)

Property that is sold by the trustee

Property that belongs to creditors

What are administrative expenses?

The actual, necessary costs of presenting and administering the estate.

Define adversary proceeding.

A lawsuit in bankruptcy that is commenced by the filing of a complaint.

What are avoidance powers in bankruptcy?

The power of a trustee, debtor in possession, or debtor to avoid certain transfers made or obligations incurred by a debtor. Signup and view all the answers

Who is a bankruptcy petition preparer?

A person, other than an attorney for the debtor, who prepares for compensation a document for filing. Signup and view all the answers

What is a codebtor?

An individual jointly liable with the debtor on a consumer debt. Signup and view all the answers

What characterizes a community property state?

The husband and wife hold equal shares of undivided property acquired during marriage. Signup and view all the answers

Define contested matter in bankruptcy.

A dispute in bankruptcy, other than an adversary proceeding, brought by motion rather than by complaint. Signup and view all the answers

What is a contingent claim?

A claim that is dependent on the occurrence of a future event. Signup and view all the answers

What does the term 'creditor holding a secured claim' mean?

A person in whose favor a security interest is created. Signup and view all the answers

What are current monthly expenditures of an individual debtor?

The average monthly expenditures of an individual debtor and their family during the six months prior to the commencement of the case. Signup and view all the answers

What is current monthly income for an individual debtor?

The average monthly income earned by an individual debtor during the six months prior to the commencement of the case. Signup and view all the answers

Define a disputed claim.

A claim that is challenged as to either its enforceability or its amount. Signup and view all the answers

What are domestic support obligations?

Obligations owed to a spouse, former spouse, or child of the debtor. Signup and view all the answers

What is an executory contract?

A contract in which performance has not been completed by either party. Signup and view all the answers

What is exempt property?

Property of the estate that the debtor may claim as immune from the reach of creditors. Signup and view all the answers

Who is an interim trustee?

The trustee appointed by the U.S. trustee in a Chapter 7 case after the entry of the order for relief. Signup and view all the answers

What is a joint case in bankruptcy?

A bankruptcy petition filed by both an individual and his or her spouse. Signup and view all the answers

What is required in the list of creditors?

The list of creditors required to be filed in a bankruptcy case. Signup and view all the answers

What occurs at a meeting of creditors?

Creditors or other parties in interest may examine the debtor under oath. Signup and view all the answers

What is a meeting of equity security holders?

A meeting at which equity security holders can discuss their rights. Signup and view all the answers

What is an order for relief?

The relief afforded a debtor upon the filing of a voluntary petition. Signup and view all the answers

What is property of the estate?

All of the legal and equitable interests in property of the debtor included in a bankruptcy estate. Signup and view all the answers

What is a reaffirmation agreement?

A written agreement filed with the bankruptcy court to pay a pre-bankruptcy debt. Signup and view all the answers

What does setoff mean in bankruptcy?

The crediting of one claim against another without an exchange. Signup and view all the answers

Study Notes

Bankruptcy Terminology

Abandoned Property: Property the trustee opts not to manage, leaving it outside the administration process.
Administrative Expenses: Essential costs incurred to present and manage the bankruptcy estate.
Adversary Proceeding: A lawsuit initiated in bankruptcy through the filing of a complaint, governed by Federal Rules of Bankruptcy Procedure (Fed.R.Bank P. 7001).
Avoidance Powers: Trustees and debtors can annul certain transfers or obligations made by the debtor prior to bankruptcy.
Bankruptcy Petition Preparer: An individual, not an attorney, who prepares bankruptcy documents for a fee, as defined under 11 U.S.C.A. sec. 110(a)(1).
Codebtor: An individual who shares liability on a consumer debt with the debtor, regardless of their status in the bankruptcy case.
Community Property State: States where marital property is equally owned by both spouses, acquired during the marriage.
Contested Matter: A bankruptcy dispute resolved through a motion process, distinct from adversary proceedings, as defined by Fed.R.Bank.P. 9014.
Contingent Claim: A claim reliant on the occurrence of a future, uncertain event.
Creditor Holding a Secured Claim: An individual or entity with a security interest allowing repossession rights upon debtor default.
Current Monthly Expenditures: The average monthly spending of an individual debtor and family, calculated over the six months leading to the bankruptcy case.
Current Monthly Income: Average monthly income of the individual debtor (and spouse in joint cases) from the six months before filing, used for means testing.
Disputed Claim: A claim whose validity or amount is challenged.
Domestic Support Obligation: Debts owed for alimony, maintenance, or child support, even if assigned to a governmental entity.
Executory Contract: A contract where not all performance obligations have been fulfilled by either party.
Exempt Property: Assets protected from creditors, allowing the debtor to retain certain property during bankruptcy.
Interim Trustee: A trustee appointed by the U.S. trustee in Chapter 7 cases who remains unless replaced at the creditors' meeting.
Joint Case: A bankruptcy petition filed by both spouses.
List of Creditors: A mandatory document detailing creditors involved in the bankruptcy, filed under Fed.R.Bank.P. 1007(a).
Meeting of Creditors: A court meeting for creditors to interrogate the debtor under oath regarding the bankruptcy estate and potential discharge.
Meeting of Equity Security Holders: A gathering for equity security holders to discuss their rights and enforcement methods.
Order for Relief: A legal remedy granted to a debtor upon filing a voluntary petition or by court approval of an involuntary petition.
Property of the Estate: All legal and equitable interests in the debtor's property that constitute the bankruptcy estate post-filing, as detailed in 11 U.S.C.A.sec. 545.
Reaffirmation Agreement: A formal agreement filed to maintain a before-bankruptcy debt post-discharge, ensuring the debt survives the bankruptcy process.
Setoff: The ability to offset one claim against another without an exchange being involved.

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Description

Dive into key terms from Chapter 5 of bankruptcy legislation with these flashcards. Each card features a word and its definition, helping you grasp the complexities of bankruptcy concepts. Perfect for students and legal professionals alike.