Bankruptcy Process

Question 1

Bankruptcy

Debtors obligation to provide information

Answer 1

• List of all creditors with addresses and amounts
• Schedule of assets and liabilities
• Schedule of current income and expenses
• Statement of financial affairs
• Statement of intention to retain or surrender property
• Certificate from credit counseling agency
• Statement of monthly income itemized
• Copy of federal tax return
• Proof of payment from employers
• Cooperate fully and respond truthfully

Question 2

Bankruptcy

Trustee

Answer 2

• collect debtor’s property
• accounting for property
• investigating financial affairs
• furnishing info and reports
• providing notice to domestic support creditors
• power to set aside transfers
  
  • usual contract defenses
  • fraudulent transfers
  • property transferred after bankruptcy filing
    Legal Preference Creditors
• transfer of property
• antecedent or preexisting debt
• within 90 days of filing
• made while insolvent
  Legal Preference Insiders
• close relationship
• transfer of debtors property to insider
• for antecedent debt
• within 1 year of filing
• While debtor was insolvent
  Exceptions
• contemporaneous exchange for new value
• payment in ordinary course of business
• consumer debtors payment up to $6,225 is not preference
• Payments for paternity, alimony, maintenance, or child support are not preferences

Question 3

Bankruptcy

Assets

Answer 3

• All tangible and intangible property
  After-Acquired Property
• acquired within 180 days
• includes inheritance, gift, divorce, life insurance policy
• any property appreciation except employee benefit
• property reacquired

Question 4

Bankruptcy

Exempt Assets

Answer 4

• only individuals get exemptions

- done by state and federal