BUL 4421 Lecture Notes - Lecture 8: Chapter 11, Title 11, United States Code, Chapter 7, Title 11, United States Code, Automatic Stay
39 views2 pages
For unlimited access to Class Notes, a Class+ subscription is required.
Bankruptcy and Reorganization:
Debtor- owes money to another entity.
Creditors- entities to which a debtor owes money.
Insolvent debtors- debtors who cannot pay their debts in a timely fashion.
BAPCPA (bankruptcy abuse prevention and consumer protection act)
Bankruptcy is federal law, however; state laws regarding property and debts may affect
the bankruptcy proceeding.
1. Filing for petition of bankruptcy
2. Creditor’s legal actions against debtor must cease.
3. Court determines whether an order of relief should be granted.
4. Creditor meet w debtor
5. Some type of payment plan is created and approved
6. Payment plan is carried out
7. Debt remaining after the plan is usually discharged
If an ind files for bankruptcy, their ability to file for bankruptcy again is restricted for a
particular time period depending on whether the petition was dismissed or completed.
Liquidation- when a debtor turns over all assets to a trustee, a person who takes control over
the debtor’s estate. The trustee is usually an attorney who takes over admin of the estate.
Preferential payments- payments made to an insolvent debtor that give preferential payment to
one creditor over another.
Fraudulent transfers- a trustee can recover these if preferential payments if they aren’t fair to
Discharge- a written federal court order signed by a bankruptcy judge stating that a debtor is
immune from creditor actions to collect debts.
Reaffirmation agreement- an agreement in which the debtor agrees to pay the debt even though
it could be discharged.