Business Law 201 Final Exam – Flashcards

1. Court Order that halts all collections and court actions against the Debtor once the Petition is filed. 2. Stops all actions by creditors and consolidates all proceedings into the Bankruptcy Court. 3. Stops all foreclosures, telephone calls, letters etc... by Creditors.

Person or business filing for Bankruptcy Protection

Person or business that is owed money by the Debtor

U.S. Trustee Chapter 13 Trustee Chapter 7 Trustee Bankruptcy Court Judge Governmental Creditors (Taxes, Utility bills, etc...) Private Creditors: LLs, Auto Cos., Credit Card Cos., Banks

Liquidation of all non-exempt assets and conversion to cash in order to pay creditors Liquidation by a Chapter 7 Trustee Filing and Review of Proof of Claims Payments to the Trustee, administrative expenses then the Creditors (? Types)

Individual or small business that files for bankruptcy protection and will prepare a Plan of Reorganization to repay their debts over 3 to 5 years. 1. Chapter 13 Trustee 2. Debtor files the Petition & Schedules 3. Debtor files a Plan of Reorganization pursuant to the Court Rules 4. 341 hearing with the Trustee 5. Confirmation of the Plan and address any Objections

Business Reorganization that will prepare a Disclosure Statement and Plan of Reorganization to repay its debts over a 3 to 5 year period. 1. Petition & Schedules 2. 341 meeting with U.S. Trustee and Creditors 3. General Discovery 4. Submission of Proof of Claims 5. Debtor's Proposed Disclosure Statement 6. Debtor's Proposed Plan of Reorganization 7. Objections to the Plan of Reorganization 8. Confirmation of the Plan of Reorganization 9. Payments to Creditors

1. Debts Exceed Assets 2. Monthly Expenses exceed Monthly Income 3. Job Loss 4. Health Care Crisis 5. Divorce/Death of the Breadwinner 6. Foreclosure 7. Repossession 8. Termination of Credit 9. Gov. Seizure 10. Credit Card Debt

Historically: Failure to pay your debts was considered a crime resulting in Debtors' Prison. Viewed as a Financial Scarlet Letter/Stigma

Fresh Start Reorganize your financial affairs Appears on Credit Report for 10 years

1. Banks/Mortgagees with a lien on Real Property or Personal Property (Security Interest/UCC-1 Filing) 2. Auto Companies with a security interest in Debtor's Vehicle

1. Credit Card Companies 2. Unsecured Personal Loans 3. Judgment Creditors who have not recorded their liens prior to the Bankruptcy

Formal Legal Document filed by a Creditor (Secured or Unsecured) that verifies the amount owed and the nature of the debt as either secured or unsecured.False information can lead to prosecution for making false statements to the government (Potential $250K fine or 5 yrs. In prison)

1. Petition & Schedules 1a. Automatic Stay 2. 341 Bankruptcy hearing w/Trustee 3. Plan of Reorganization 4. General Discovery 5. Confirmation of Plan 6. Payments to Trustee

1. Complaint 2. Summons 3. Service of Process 4. Answer 5. Discovery 6. Case Evaluation 7. Pre-trial Motions 8. Trial