MGMT 108 Chapter Notes - Chapter 31: Life Insurance, Community Property, Secured Creditor
Document Summary
Governing law is based on federal legislation. Goals of bankruptcy law are to protect the debtor by giving him or her a fresh start without creditor"s claims and to ensure equitable treatment of creditors competing for a debtor"s assets. Bankruptcy course hold the proceedings required to administer the estate of the debtor in bankruptcy. The estate consists of the debtor"s assets. Chapter 7 bankruptcy provides for liquidation proceedings (the selling of all nonexempt assets and the distribution of the proceeds to the debtors creditors. Note that a debtor (except for a municipality) need not be insolvent to file for bankruptcy relief under the bankruptcy code. Anyone obligated to a creditor can declare bankruptcy (cid:1) (cid:1) Liquidation is often referred to as ordinary or straight bankruptcy. A debtor in a liquidation bankruptcy turns all assets over to a bankruptcy trustee (appointed by the court) The trustee sells the nonexempt assets and distributes the proceeds to creditors.
