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BLaw II, Chapter 21
Terms in this set (38)
encumbrance (claim upon) on property to satisfy a debt or protect a claim for the payment of debt
lien for labor, materials, or service on real estate.
lien for labor and materials on personal property (watch, ring, etc)
lien that arises out of a court decision
Writ of Attachment
court orders sheriff to seize non-exempt property
Writ of Execution
court order to seize and sell debtor's non-exempt real and personal property to satisfy debt
Permits a creditor to collect a debt by seizing property of the debtor held by a third party
Creditors' Composition Agreements
Creditors take less than owed on a liquidated debt, binding on those who agree because consideration given by each depending on one another
Promise by a third person to be primarily liable for the debtor's obligation to the creditor, creditor need not exhaust all legal remedies against the debtor before holding the surety responsible
third person making the guarantee is secondarily liable, have to go after debtor first and exhaust efforts
Right of Subrogation
Any right the creditor had against the debtor becomes the right of the surety—creditor rights in bankruptcy, rights to collateral possessed by the creditor, and rights to judgments secured by the creditor
Right of Reimbursement
The surety is entitled to receive from the debtor all outlays made on behalf of the suretyship arrangement
Right of Contribution
A surety who pays more than his or her proportionate share on a debtor's default is entitled to recover from the co-sureties the amount paid above the surety's obligation
permits a debtor to retain all or part of the family home free from the claims of unsecured creditors or trustees in bankruptcy, must have lived in state for two years, maximum of $146,450
Bankruptcy law primarily deals with which type of law?
referred to as ordinary or straight bankruptcy, debtor turns all assets over to the bankruptcy trustee, trustee sells nonexempt property and distributes the proceeds to the creditors, remaining debts are discharged
any person, corporation, or partnership
Who is chapter 7 available for?
If a debtor files the petition, it is ________
If creditors file a petition, it is ________ bankruptcy
Prior to filing, debtor(s) must receive credit counseling within ______ of filing, and submit certificate
substance abuse and the means test
used to determine whether debtor's petition will be dismissed under Chapter 7
granted upon filing a petition, protecting debtor from all creditors, creditors can't call or try to collect debts
a person appointed by Court whose duties include collecting assets and paying creditors in order of priority
estate in property
consists of all the debtor's legal and equitable interests in property
strong-arm, avoidance, and right to the possession of the debtor's property
What are the trustee's 3 powers?
Debtor is not permitted to transfer property or make a payment that favors one creditor over another within the previous 90 days
How long does the avoidance power of a trustee extend for preferences to insiders?
domestic support obligations
What is the top unsecured creditor?
objections to discharge
Court may deny claims based on debtor's conduct
exceptions of discharge
A discharge of a debt may be denied under certain circumstances
Reaffirmation of Debt
Debtor agrees to pay a debt in bankruptcy before discharge, disclosure required
corporations and other legal entities
Who is chapter 11 bankruptcy for?
chapter 11 bankruptcy
Debtor and Creditors formulate a plan under which the Debtor pays a portion of its debts and is discharged of the rest, fast-track for small businesses
Private negotiation of creditor-debtor relations
Debtor in Possession (DIP)
The debtor's business operates under court supervision, has same powers as trustee, but court may appoint trustee (receiver) with 'strong arm' powers
chapter 13 bankruptcy
For individuals with regular income who owe fixed unsecured debts of <$360,475 or fixed secured debts of <1,081,400, good faith requirement
cram down provision
courts can confirm a chapter 11 plan even when only one class has accepted it
only the debtor
Who can initiate a chapter 13 case?
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