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What is a bankruptcy proceeding?
A proceeding in which an individual or business asks the court for financial rehabilitation under Title 11 of the United States Bankruptcy Code.
What are the two goals of bankruptcy?
Financial relief and a fresh start.
What court has jurisdiction over bankruptcy?
United States bankruptcy court for each United States district court.
Why does a debtor need a lawyer?
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What opportunities are given to a debtor who seeks protection under the Bankruptcy Code?
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What is a bankrupt called under the Bankruptcy Code?
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What are the two methods of filing for bankruptcy?
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What is the first document filed in a bankruptcy proceeding?
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Where is the petition filed?
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What happens upon the filing of the petition?
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When is a notice to creditors filed and by whom?
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What is a notice to creditors?
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When is a proof of claim filed?
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Who files a proof of claim?
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What debts are not dischargeable in a Chapter 7 proceeding?
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What occurs at the conclusion of the Chapter 7 case?
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Two types of bankruptcy proceedings are ___ and ___.
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A person filing a bankruptcy petition is called a(n) ____.
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A debt owed to the milk company is an example of a(n) ___ debt; a debt owed to a finance company with furniture as collateral is an example of a(n) _____ debt.
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Those items of property that a debtor may keep are called ______ property.
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Debts for child support (can/cannot) ______ be discharged in bankruptcy.
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Taxes owed to the United States Government (can/cannot) ______ be discharged in bankruptcy.
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A debt owed a parent (can/cannot) ________ be discharged in bankruptcy.
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The person filing a bankruptcy petition (can/cannot) ______ select which debts will be listed and which debts will be paid.
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The first document filed in a bankruptcy proceeding is the ____.
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The relief sought by a person or entity who files a petition in bankruptcy is _____.
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Since bankruptcy is a federal proceeding, the federal exemptions are used.
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A schedule in a bankruptcy lists the hearing dates and time periods for filing.
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A Chapter 13 bankruptcy is filed in district court.
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A bankruptcy proceeding permits financial rehabilitation for the debtor.
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If a creditor does not believe that their debt is dischargeable, they may ask the bankruptcy court for a judgment declaring the debt nondischargeable.
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An adversary proceeding is one in which a creditor contests some phase of the bankruptcy or decision of the court.
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When a debtor files a bankruptcy petition, the majority of his or her personal property is sold for the benefit of his creditors.
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Some states have not accepted the federal exemptions for bankruptcies filed within those states.
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If a creditor is accidentally omitted from a bankruptcy petition and the debtor is discharged before this is noticed, the debtor may be liable for the debt.
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Debtors can voluntarily repay a discharged debt at any time.
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Study Notes
Bankruptcy Proceedings
- A bankruptcy proceeding allows individuals or businesses to seek financial rehabilitation under Title 11 of the U.S. Bankruptcy Code.
- Two primary objectives are financial relief and a fresh start for the debtor.
Jurisdiction and Filing
- U.S. Bankruptcy Courts hold jurisdiction for bankruptcy cases, functioning under each U.S. District Court.
- Filing is initiated with a voluntary or involuntary petition for relief.
Legal Representation
- Debtors typically require a lawyer for various tasks such as preparing legal documents, providing advice on whether bankruptcy is suitable, and representing them in court.
Notifications and Claims
- The bankruptcy court issues a 341 notice to creditors, allowing at least 21 days for them to question the debtor.
- Creditors must file a proof of claim within the court-specified timeframe to participate in any potential distribution.
Types of Bankruptcy and Discharge
- There are two types of bankruptcy filings: voluntary and involuntary.
- Common debts that cannot be discharged in Chapter 7 include certain taxes, alimony, child support, luxury goods debts, and debts incurred via fraud.
Property and Exemptions
- Exempt property refers to items that a debtor is allowed to keep during bankruptcy proceedings.
- Debtors cannot choose specific debts to list or prioritize in payments during bankruptcy.
Potential Outcomes
- Upon discharge, creditors cannot take action to collect discharged debts.
- A Chapter 13 bankruptcy is filed in a different manner than other types, typically incorrect statements listed as "false" for context.
Miscellaneous Facts
- Specific debts such as child support and taxes owed to the government cannot be discharged during bankruptcy.
- Some states may opt out of federal exemption guidelines, allowing alternative protections.
- Missing a creditor from a petition may result in continued liability for that debt if not addressed before discharge.
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Description
Test your knowledge with this flashcard quiz on Chapter 20 of NALS - ALP, focused on bankruptcy proceedings. Explore key definitions, goals, and jurisdictions related to bankruptcy under U.S. law. Perfect for law students and legal professionals looking to reinforce their understanding of bankruptcy concepts.
