Podcast
Questions and Answers
What is the primary responsibility of a Chapter 7 Trustee in a bankruptcy action?
What is the primary responsibility of a Chapter 7 Trustee in a bankruptcy action?
- Convert all the non-exempt assets to exempt assets
- Monitor the debtor’s development and performance of their plan
- Negotiate a plan for payment of creditors that needs to be approved by the bankruptcy court
- Collect and liquidate the assets of the debtor, then distribute the assets to creditors (correct)
In Chapter 13 bankruptcy, how are payments made to creditors?
In Chapter 13 bankruptcy, how are payments made to creditors?
- Through negotiation with the bankruptcy court
- Based off of a calculation of future income (correct)
- In equal installments over a fixed period of time
- From the liquidation of the debtor’s property
What is the role of a Chapter 11 debtor in possession?
What is the role of a Chapter 11 debtor in possession?
- To collect and liquidate the assets of the debtor
- To stay in possession of assets and continue to run the business (correct)
- To monitor the debtor’s development and performance of their plan
- To convert non-exempt assets to exempt assets
What is the duration of the whole bankruptcy process in Chapter 13?
What is the duration of the whole bankruptcy process in Chapter 13?
What is the primary difference between an adversary proceeding and a contested matter in bankruptcy court?
What is the primary difference between an adversary proceeding and a contested matter in bankruptcy court?
Under what circumstances would a bankruptcy case be considered a contested matter rather than an adversary proceeding?
Under what circumstances would a bankruptcy case be considered a contested matter rather than an adversary proceeding?
What should a bankruptcy attorney pay attention to in addition to the bankruptcy code and rules?
What should a bankruptcy attorney pay attention to in addition to the bankruptcy code and rules?
In a chapter 7 bankruptcy, what percentage of cases are no-asset cases that provide no distribution to unsecured creditors?
In a chapter 7 bankruptcy, what percentage of cases are no-asset cases that provide no distribution to unsecured creditors?
In a chapter 7 distribution, if $30,000 goes to one creditor, how much would $50,000 go to?
In a chapter 7 distribution, if $30,000 goes to one creditor, how much would $50,000 go to?
What does it mean when the trustee abandons property in a bankruptcy case?
What does it mean when the trustee abandons property in a bankruptcy case?
What should be done when trying to convince the trustee to abandon property in a bankruptcy case?
What should be done when trying to convince the trustee to abandon property in a bankruptcy case?
In a bankruptcy case, what is the primary purpose of electronic filing?
In a bankruptcy case, what is the primary purpose of electronic filing?
Study Notes
Bankruptcy Proceedings
- The primary responsibility of a Chapter 7 Trustee is to administer the debtor's estate and distribute proceeds to creditors.
Payment to Creditors in Chapter 13 Bankruptcy
- In Chapter 13 bankruptcy, payments are made to creditors through a plan that outlines the payment schedule and amount.
Chapter 11 Debtor in Possession
- A Chapter 11 debtor in possession has the same rights and powers as a trustee, and is responsible for managing the estate and proposing a plan of reorganization.
Duration of Chapter 13 Bankruptcy Process
- The duration of the whole bankruptcy process in Chapter 13 can take 3-5 years.
Adversary Proceedings vs. Contested Matters
- The primary difference between an adversary proceeding and a contested matter is that an adversary proceeding is a separate lawsuit within the bankruptcy case, whereas a contested matter is a dispute within the bankruptcy case.
Circumstances for Contested Matters
- A bankruptcy case would be considered a contested matter rather than an adversary proceeding when there is a dispute within the bankruptcy case that does not require a separate lawsuit.
Important Considerations for Bankruptcy Attorneys
- In addition to the bankruptcy code and rules, a bankruptcy attorney should pay attention to local rules, court decisions, and industry standards.
No-Asset Cases in Chapter 7 Bankruptcy
- Approximately 90% of Chapter 7 cases are no-asset cases, which provide no distribution to unsecured creditors.
Distribution in Chapter 7 Bankruptcy
- If $30,000 goes to one creditor in a Chapter 7 distribution, $50,000 would go to that creditor at a 60% distribution rate.
Abandonment of Property
- When the trustee abandons property in a bankruptcy case, it means that the trustee has determined that the property is burdensome or of inconsequential value to the estate.
Convincing the Trustee to Abandon Property
- When trying to convince the trustee to abandon property, it is essential to demonstrate that the property has no significant value to the estate or would be costly to administer.
Electronic Filing in Bankruptcy Cases
- The primary purpose of electronic filing in bankruptcy cases is to improve the efficiency and accuracy of the filing process.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of Chapter 7 bankruptcy liquidation with this quiz. Explore the process of gathering and selling non-exempt assets, the timeline for discharge, and the role of the debtor's attorney in converting assets. Sharpen your understanding of this crucial chapter in bankruptcy law.
