Bankruptcy

What are the goals and purposes of bankruptcy laws?

Protecting creditors and debtors, preventing preferences

Who are the parties to a bankruptcy?

1. Creditors

2. Debtors

3. trustee

What are the common types of bankruptcy proceedings?

 Liquidations or reorganizations

Under which Chapter of the Bankruptcy Code do most consumer liquidations fall?

7

How does a bankruptcy commence?

file a petition with the bankruptcy court.

What is the automatic stay and when does it occur?

Stop everything temporarily, nothing else can happen to the debtor

What is a meeting of the creditors?

a public hearing where the debtor is questioned under oath by the trustee and, potentially, by creditors about the debtor's financial situation and ability to repay debts

What is a proof of claim and who must file one?

 Statement you want to stay in bankruptcy

What is a preference?

A preferential payment to a creditor over another

What time periods apply to preferences?

90 days, (insiders is 1 year)