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BUL
Business Law ch39
51
Business
Undergraduate 3
12/07/2012

Additional Business Flashcards

 


 

Cards

Term
Chapter 7
Definition
Liquidation; applies to individuals or businesses. IE Going out of business sign, it means that bus.is dying or dead
Term
Chapter 11
Definition
Reorganization; applies to most businesses, but not individuals.
Term
Chapter 12
Definition
Reorganization; applies to family farms
Term
Chapter 13
Definition
Wage Earner plan; applies to individuals
Term
Joint Filings
Definition
Spouses may file proceedings together under 7 or 13
Term
More on Chapter 11
Definition
designed to fund a business tat is fundemantelly sound, but has created a short term problem and if it clears up, it will be good in the long term. IE: recent times: Airlines, motor companies. Ch 11 allows you to void any contract, not just voidable.
Term
Commencement of the Case
Definition
the filing of a petition begins jurisdiction in the bankruptcy court.
Term
By filing a petition
Definition
How does bankruptcy start
Term
Voluntary Petition
Definition
available to any debtor even if solvent; consumer debtor must receive credit counseling before filing.
Term
Involuntary Petition
Definition
may be filed only under Chapter 7 or 11 if the debtor is generally not paying his debts as they become due; debtor may answer the petition.
Term
Petition
Definition
The following must be included in this

1.Identify the debtor
2.Schedule of assets and debts
3.Id of creditors
Anything not listed or ID’d, you won’t get bankruptcy relief to that ind.
Term
Dismissal
Definition
This is bad for the debtor; It means their bankruptcy plea is being dismissed and won’t be able to file again for at least another 8 years or so
Term
Chapter 7
Definition
Most businesses want to file an 11, but if they go through reorganization, then it eventually becomes a chapter...
Term
Conversion
Definition
a Chapter 7 case may be ___________ to a Chapter 11 or 13 case in certain circumstances, and vice versa. The most common __________, in the case of a business, is from a Chapter 11 to a Chapter 7.
Term
Automatic Stay
Definition
everything freezes in place. If a creditor violates this, you have a contempt of court. IE a bank that takes back the car even though the debtor goes in bankruptcy and bank is aware of this, the bank has commited a crime of contempt of court.
Term
Meeting of Creditors
Definition
In a case, every bankruptcy proceeding is required to have this for the individual to show up
Term
Notice to Creditors
Definition
if assets exist, creditors given opportunity to file claim
Term
Creditor
Definition
any entity that has a claim against the debtor
Term
Claim
Definition
A right to payment
Term
Secured Claim
Definition
Collateral; claim with a lien on property of the debtor.
Term
Unsecured Claim
Definition
Uncollateral; portion of a claim that exceeds the value of any property securing that claim.
Term
Priority of Claims
Definition
the right of certain claims to be paid before claims of lesser rank.
Term
3
Definition
How many types of claims?
Term
#1. A secured claim
Definition
Top priority claim; it's a collateral claim, but only to the extent of the collateral.
Term
#2. Unsecured Priority Claim
Definition
Second in-line claim
Term
#3. Unsecured non-priority claim
Definition
Third in-line; they usually get nothing.
Term
discharge
Definition
relief from liability for all debts except those the Bankruptcy Code specifies as not ____________
Term
Discharge
Definition
You file a bankruptcy to get a _______; it is why you go to bankruptcy, It wipes out many kinds of debt
Term
Estate
Definition
Your assets that are subject to bankruptcy proceedings.
Term
Estate
Definition
When a bankruptcy case is filed, all legal and equitable interests of the debtor in nonexempt property become property of the _______
Term
Estate
Definition
Creditors are generally limited to satisfaction of their debts from the estate, not the debtor.
The estate is treated as a separate legal entity, distinct from the debtor.
Term
Trustee
Definition
a third party that supervises the bankruptcy case and can control disposition of assets; he gains the rights and powers of creditor with judicial lien
Term
FL exemption: Homestead Real Estate
Definition
Outside city, up to 160 acres, no value cap – FL only

Outside city, up to 160 acres, no value cap – FL only
Term
Priority of Claims - the right of certain claims to be paid before claims of lesser rank.
Definition
1.Domestic support obligations
2.Expenses of administration of debtor’s estate
3.Gap creditors (incurred between filing of claim and order for relief)
4.Taxes
Term
Antecedent Debt
Definition
Debt that was owed before, and it wasn’t made in ordinary course of business, you must pay that to the bankruptcy court
Term
Voidable Preferences
Definition
Bankruptcy Code invalidates certain preferential transfers made before the date of bankruptcy from the debtor to favored creditors.
Term
Fraudulent Transfers
Definition
*Trustee may “avoid” (set aside) “fraudulent” transfers made on or within one year before the date of bankruptcy. A fraudulent transfer is one intended to hide or protect assets.
IE: Transferring your moneys to your family, etc.
Term
Voidable Preferences
Definition
Bankruptcy Code invalidates certain preferential transfers made before the date of bankruptcy from the debtor to favored creditors.
Term
Fraudulent Transfers
Definition
*Trustee may “avoid” (set aside) “fraudulent” transfers made on or within one year before the date of bankruptcy. A fraudulent transfer is one intended to hide or protect assets.
IE: Transferring your moneys to your family, etc.
Term
Liquidation, Ch7
Definition
terminating the business of the debtor (if applicable), distributing his nonexempt assets, and, discharging all dischargeable debts
Term
See definition
Definition
A court may dismiss a Ch. 7 case if it would be an abuse of the provisions of Chapter 7. Abuse may be found if the debtor filed in bad faith or if the debtor’s income is greater than the state median income (by using the means test
Term
Distribution of Estate (part of Liquidation from ch7)
Definition
(1) secured creditors, (2) creditors entitled to a priority, (3) unsecured creditors, (4) fines & interest, and (5) the debtor.
Term
Reorganization, ch11
Definition
to preserve a distressed entity and its value as a going concern
Term
Proceedings of Reorganization (ch11)
Definition
debtor usually remains in possession and management of the property of the estate. Debtor usually serves as trustee, under the direction of a committee of creditors.
Term
Confirmation of Reorganization Plan
Definition
requires (1)­good faith, (2)­feasibility, (3)­cash payments to some creditors, and usually (4)­acceptance by creditors
Term
See definition
Definition
Some effects of confirmation plan of reorg.: - binds debtor and creditors and discharges the debtor (after plan payments are made.)
Term
Adjustment of Debts of Individuals
Definition
to permit an individual debtor to file a repayment plan (called a “wage-earner’s plan) to discharge most debts.
Term
Confirmation Plan of Adjustment of Individuals's debts
Definition
Confirmation of Plan of _____________ - requires (1) good faith, (2) that the value of property distributed to creditors be not less than the amount to be paid them under Chapter 7, (3) that secured creditors accept the plan, and (4) that the debtor be able to make all payments and comply with the plan.
Term
Binds the debtor and all creditors.
Definition
Effect of Confirmation Adjustment of Debts of Individuals—Ch. 13?
Term
Extension agreement
Definition
gives the debtor more time to pay, either in full or reduced.
Term
Assignment for Benefit of Creditors
Definition
voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all the debtor's debts.
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