12 Questions
In bankruptcy exemption planning, what is the primary goal?
Maximizing the debtor’s exemption to prevent liquidation of assets
What was the outcome in the case of In Re Tveten regarding the attempt to exempt $700k of net assets?
The court held that trying to exempt $700k was excessive and could be seen as taking advantage of the bankruptcy code
What was the financial situation of Vangen before filing for bankruptcy?
She incurred 400K in marital debt due to a divorce and a dispute involving her husband's company
What did the court's decision in In Re Tveten indicate about attempting to convert non-exempt assets into exempt assets?
Attempting to convert too much money could be problematic and seen as taking advantage of the bankruptcy code
What are the 4 principles to follow in the conversion process from non-exempt to exempt assets?
Using tainted funds, using unsecured credit, selling for fair market value, making misrepresentations to the creditor
What are the 2 ways to retain assets according to the text?
Reaffirmation agreement, redemption
What is the consequence of getting close to 700k according to the Tveten Case?
The trustee will use Tveten to prove a fraudulent transfer
When must the Chapter 7 attorney be paid according to the text?
Upfront (contemporaneous exchange)
What could be considered an antecedent debt according to the text?
Dr. bills
What type of life insurance policy is designed to pay off a borrower's outstanding debts if the borrower dies?
Credit life insurance
In which type of bankruptcy can the trustee be paid throughout the process?
Chapter 13
What is the consequence of putting money into retirement annuities according to the text?
Risk of losing everything if the insurance company goes into bankruptcy
Test your understanding of exemption planning in bankruptcy cases with this quiz. Explore key strategies to maximize debtor exemptions and minimize assets in the estate, using a real-life case example for context.
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