Podcast
Questions and Answers
What does 524(a) govern in bankruptcy?
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?
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?
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?
What does a 'zero payment' plan under Chapter 13 entail?
What grounds did the city object to the bankruptcy petition on?
What grounds did the city object to the bankruptcy petition on?
How long must the creditor prove the conveyance occurred before the petition date?
How long must the creditor prove the conveyance occurred before the petition date?
What evidence did the court use to prove actual intent in fraudulent conveyance cases?
What evidence did the court use to prove actual intent in fraudulent conveyance cases?
What is the waiting period for filing another Chapter 7 after a previous one?
What is the waiting period for filing another Chapter 7 after a previous one?
What led to the denial of discharge in Union Planter’s Bank v. Connors case?
What led to the denial of discharge in Union Planter’s Bank v. Connors case?
What practical takeaways were mentioned for debtors in the text?
What practical takeaways were mentioned for debtors in the text?
What does 727(a)(4) govern in bankruptcy?
What does 727(a)(4) govern in bankruptcy?
In a settlement of an objection to discharge, who receives priority?
In a settlement of an objection to discharge, who receives priority?
What did the McWilliams do before filing for bankruptcy?
What did the McWilliams do before filing for bankruptcy?
What did the reconveyance of the property back to the grandparents fail to do?
What did the reconveyance of the property back to the grandparents fail to do?
What did the Connors borrow from the bank in Union Planter’s Bank v. Connors case?
What did the Connors borrow from the bank in Union Planter’s Bank v. Connors case?
What will debtors benefit from keeping according to the text?
What will debtors benefit from keeping according to the text?
In bankruptcy, what does 524(a)(3) discharge act as an injunction against?
In bankruptcy, what does 524(a)(3) discharge act as an injunction against?
What types of objections are included in objections to entire discharge under 727(a)?
What types of objections are included in objections to entire discharge under 727(a)?
What did the ruling in Burnett vs. Stewart Title Inc. state regarding private employers and bankruptcy status?
What did the ruling in Burnett vs. Stewart Title Inc. state regarding private employers and bankruptcy status?
What does 525(b) of the bankruptcy law specifically prohibit private employers from doing?
What does 525(b) of the bankruptcy law specifically prohibit private employers from doing?
What did the court's ruling in the McWilliams case pertain to?
What did the court's ruling in the McWilliams case pertain to?
What does 727(a) of the bankruptcy law include in terms of waiting periods between bankruptcy filings?
What does 727(a) of the bankruptcy law include in terms of waiting periods between bankruptcy filings?
What protection does the In Re Thongta case provide for marital property in relation to bankruptcy?
What protection does the In Re Thongta case provide for marital property in relation to bankruptcy?
What happens to individual assets in bankruptcy?
What happens to individual assets in bankruptcy?
What is the impact of a discharge in bankruptcy on the licensing of operators for driver training schools?
What is the impact of a discharge in bankruptcy on the licensing of operators for driver training schools?
What does 727(a) of the bankruptcy law include in terms of the requirement for a personal financial management course?
What does 727(a) of the bankruptcy law include in terms of the requirement for a personal financial management course?
What is the impact of a discharge in bankruptcy on the employment status of an individual?
What is the impact of a discharge in bankruptcy on the employment status of an individual?
What does Congress allow federal employers to do based on bankruptcy status?
What does Congress allow federal employers to do based on bankruptcy status?
Which type of debt is not covered by the bankruptcy discharge according to §523?
Which type of debt is not covered by the bankruptcy discharge according to §523?
Which type of debt benefits only the specific creditor that was able to establish its exception to discharge according to §523?
Which type of debt benefits only the specific creditor that was able to establish its exception to discharge according to §523?
What type of debt is non-dischargeable unless some kind of real hardship is shown?
What type of debt is non-dischargeable unless some kind of real hardship is shown?
What happens to all the debts if a discharge is lost under §727?
What happens to all the debts if a discharge is lost under §727?
What is the most favorable act to Manriquez according to the text?
What is the most favorable act to Manriquez according to the text?
If you were the bank's attorney, would you have appealed for violation of 523 in the Manriquez case?
If you were the bank's attorney, would you have appealed for violation of 523 in the Manriquez case?
What principle must be applied when starting a Chapter 7 appointment according to the text?
What principle must be applied when starting a Chapter 7 appointment according to the text?
What is the timeframe for filing a complaint under 523(c) according to the text?
What is the timeframe for filing a complaint under 523(c) according to the text?
What is the timeframe for luxury purchases to be considered in relation to filing for bankruptcy according to the text?
What is the timeframe for luxury purchases to be considered in relation to filing for bankruptcy according to the text?
In the scenario provided, when can the $10,000 medical bills be discharged in Chapter 7?
In the scenario provided, when can the $10,000 medical bills be discharged in Chapter 7?
What type of debt is generally non-dischargeable according to the text?
What type of debt is generally non-dischargeable according to the text?
What is the threshold amount for cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?
What is the threshold amount for cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?
What is the timeframe for obtaining cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?
What is the timeframe for obtaining cash advances under an open-end credit plan to be presumed non-dischargeable according to the text?
What is the exception to discharge of family obligations according to the text?
What is the exception to discharge of family obligations according to the text?
What did the court conclude about the credit card debt in the In Re Manriquez case?
What did the court conclude about the credit card debt in the In Re Manriquez case?
What was the basis for the non-dischargeability of the cruise expense in the In Re Manriquez case?
What was the basis for the non-dischargeability of the cruise expense in the In Re Manriquez case?
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.
