Bankruptcy Law and Discharge Objections Quiz
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Questions and Answers

What does 524(a) govern in bankruptcy?

  • Effect of the Discharge (correct)
  • Secured Creditor's Lien
  • Discriminatory Treatment
  • Automatic Stay

    • What does 525(b) allow private employers to do?

  • Revoke judgments
  • Terminate automatic stay
  • Suspend debt payments
  • Discriminate (correct)

    • What is the waiting period for filing another Chapter 7 after a previous one?

  • 3 years
  • 10 years
  • 5 years
  • 8 years (correct)

    • What does a 'zero payment' plan under Chapter 13 entail?

    <p>No payment required</p> Signup and view all the answers

    What grounds did the city object to the bankruptcy petition on?

    <p>727(a)(2)</p> Signup and view all the answers

    How long must the creditor prove the conveyance occurred before the petition date?

    <p>Less than a year</p> Signup and view all the answers

    What evidence did the court use to prove actual intent in fraudulent conveyance cases?

    <p>Circumstantial evidence like lack of adequate consideration and financial condition</p> Signup and view all the answers

    What is the waiting period for filing another Chapter 7 after a previous one?

    <p>8 years</p> Signup and view all the answers

    What led to the denial of discharge in Union Planter’s Bank v. Connors case?

    <p>Failure to provide accurate business records</p> Signup and view all the answers

    What practical takeaways were mentioned for debtors in the text?

    <p>Waiting another year before filing for bankruptcy or filing for chapter 13</p> Signup and view all the answers

    What does 727(a)(4) govern in bankruptcy?

    <p>Incorrect information</p> Signup and view all the answers

    In a settlement of an objection to discharge, who receives priority?

    <p>Lead creditor</p> Signup and view all the answers

    What did the McWilliams do before filing for bankruptcy?

    <p>Conveyed land to their grandkids for $1.00 and love</p> Signup and view all the answers

    What did the reconveyance of the property back to the grandparents fail to do?

    <p>Cure the original intent to defraud</p> Signup and view all the answers

    What did the Connors borrow from the bank in Union Planter’s Bank v. Connors case?

    <p>Over $20 million secured by 2.5 million shares of stock</p> Signup and view all the answers

    What will debtors benefit from keeping according to the text?

    <p>Organized and accurate records</p> Signup and view all the answers

    In bankruptcy, what does 524(a)(3) discharge act as an injunction against?

    <p>Judgment on community property for prepetition debts</p> Signup and view all the answers

    What types of objections are included in objections to entire discharge under 727(a)?

    <p>Fraudulent transfers and inaccurate records</p> Signup and view all the answers

    What did the ruling in Burnett vs. Stewart Title Inc. state regarding private employers and bankruptcy status?

    <p>Private employers can deny employment based on bankruptcy status</p> Signup and view all the answers

    What does 525(b) of the bankruptcy law specifically prohibit private employers from doing?

    <p>Firing or discriminating based on bankruptcy status</p> Signup and view all the answers

    What did the court's ruling in the McWilliams case pertain to?

    <p>A condemned building</p> Signup and view all the answers

    What does 727(a) of the bankruptcy law include in terms of waiting periods between bankruptcy filings?

    <p>Rules on waiting periods between bankruptcy filings</p> Signup and view all the answers

    What protection does the In Re Thongta case provide for marital property in relation to bankruptcy?

    <p>Spouse's bankruptcy discharge can protect marital property from future creditor actions</p> Signup and view all the answers

    What happens to individual assets in bankruptcy?

    <p>Individual assets go into the bankruptcy</p> Signup and view all the answers

    What is the impact of a discharge in bankruptcy on the licensing of operators for driver training schools?

    <p>A discharge in bankruptcy does not revoke the license</p> Signup and view all the answers

    What does 727(a) of the bankruptcy law include in terms of the requirement for a personal financial management course?

    <p>Requirement for a personal financial management course</p> Signup and view all the answers

    What is the impact of a discharge in bankruptcy on the employment status of an individual?

    <p>Employers cannot rescind an offer based on bankruptcy status after hiring</p> Signup and view all the answers

    What does Congress allow federal employers to do based on bankruptcy status?

    <p>Deny employment based on bankruptcy status</p> Signup and view all the answers

    Which type of debt is not covered by the bankruptcy discharge according to §523?

    <p>Debts listed in the schedule</p> Signup and view all the answers

    Which type of debt benefits only the specific creditor that was able to establish its exception to discharge according to §523?

    <p>Domestic support obligations</p> Signup and view all the answers

    What type of debt is non-dischargeable unless some kind of real hardship is shown?

    <p>Student loans</p> Signup and view all the answers

    What happens to all the debts if a discharge is lost under §727?

    <p>All of those debts become non-dischargeable in future bankruptcies</p> Signup and view all the answers

    What is the most favorable act to Manriquez according to the text?

    <p>The credit card debt was majority household goods</p> Signup and view all the answers

    If you were the bank's attorney, would you have appealed for violation of 523 in the Manriquez case?

    <p>Yes because the cruise is a slam dunk non-dischargeable luxury good</p> Signup and view all the answers

    What principle must be applied when starting a Chapter 7 appointment according to the text?

    <p>Be wary of luxury purchases in the last 90 days</p> Signup and view all the answers

    What is the timeframe for filing a complaint under 523(c) according to the text?

    <p>60 days after the §341 initial meeting of creditors</p> Signup and view all the answers

    What is the timeframe for luxury purchases to be considered in relation to filing for bankruptcy according to the text?

    <p>Within 90 days</p> Signup and view all the answers

    In the scenario provided, when can the $10,000 medical bills be discharged in Chapter 7?

    <p>They cannot be discharged in Chapter 7</p> Signup and view all the answers

    What type of debt is generally non-dischargeable according to the text?

    <p>Student loans</p> Signup and view all the answers

    What is the threshold amount for cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?

    <p>$750</p> Signup and view all the answers

    What is the timeframe for obtaining cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?

    <p>Within 70 days</p> Signup and view all the answers

    What is the exception to discharge of family obligations according to the text?

    <p>State and federal courts have concurrent jurisdiction over bankruptcy matters</p> Signup and view all the answers

    What did the court conclude about the credit card debt in the In Re Manriquez case?

    <p>It is dischargeable</p> Signup and view all the answers

    What was the basis for the non-dischargeability of the cruise expense in the In Re Manriquez case?

    <p>Luxury goods purchase</p> Signup and view all the answers

    Study Notes

    Bankruptcy and Objections to Discharge

    • The McWilliams faced a costly repair or demolition of their property, leading to conveyance of land to their grandkids for $1.00 and love, followed by a bankruptcy petition.
    • The city objected to the bankruptcy petition on grounds of fraudulent conveyance 727(a)(2).
    • The reconveyance of the property back to the grandparents did not cure the original intent to defraud, leading to the denial of discharge based on 727(a)(2).
    • The creditor must prove the conveyance occurred less than a year before the petition date, with actual intent to defraud, and that the debtor performed the fraudulent transfer.
    • The court proved actual intent through circumstantial evidence like lack of adequate consideration and the party's financial condition before and after the transaction.
    • Practical takeaways include waiting another year before filing for bankruptcy or filing for chapter 13.
    • A debtor can file for bankruptcy but cannot get a discharge if they have had a chapter 7 discharge within 8 years.
    • It is important for debtors to keep organized and accurate records, as lawyers and sophisticated individuals should be able to do so.
    • The discharge will be denied for incorrect information under 727(a)(4), emphasizing the need for accurate schedule documents.
    • In a settlement of an objection to discharge, all creditors share in the settlement, but the lead creditor receives priority.
    • In Union Planter’s Bank v. Connors, the couple borrowed over $20 million from the bank, secured by 2.5 million shares of stock, which fell to $12 million, leading to a bankruptcy filing.
    • The Connors failed to provide accurate business records, which led to the denial of discharge, emphasizing the need for organized and accurate records.

    Bankruptcy Law and Discharge: Key Points

    • Private employers cannot fire or discriminate based on bankruptcy status under 525(b)
    • Burnett vs. Stewart Title Inc. ruling: private employers can deny employment based on bankruptcy status
    • In Re Thongta case: spouse's bankruptcy discharge can protect marital property from future creditor actions
    • 524(a)(3) discharge acts as an injunction against judgment on community property for prepetition debts
    • Objections to entire discharge under 727(a) include fraudulent transfers, inaccurate records, false information in schedules, non-compliance with court orders, and criminal activity
    • 727(a) also includes rules on waiting periods between bankruptcy filings and the requirement for a personal financial management course
    • McWilliams case involved a condemned building, and the court's ruling was binding in the 7th circuit
    • The employer's due diligence in job candidates is crucial, and rescinding an offer based on bankruptcy status is prohibited after hiring
    • In bankruptcy, individual assets go into the bankruptcy, while 100% of the marital property goes into the bankruptcy estate
    • State S requires licensing of operators for driver training schools, and a discharge in bankruptcy does not revoke the license
    • Private employers cannot fire an employee because of their bankruptcy status under 525(b)
    • Congress allows federal employers to deny employment based on bankruptcy but not private employers

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    Description

    Test your knowledge of bankruptcy law and objections to discharge with this quiz. Explore key cases, legal requirements, and practical takeaways related to fraudulent conveyance, discharge denial, employment rights, and more.

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