Exam 26: Bankruptcy

In some circumstances,a bankruptcy court can conduct a jury trial.

Gustav files a petition for bankruptcy under Chapter 13.Gustav is granted a discharge.Debts that will not be discharged include claims for

An individual's repayment plan under Chapter 13 can be initiated only by the debtor's filing of a voluntary petition.

If the assets in a debtor's estate in bankruptcy are insufficient to pay fully all creditors,the debtor is liable for the difference.

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

Eve sells her motorcycle to her brother Floyd for $1,000. Twelve days later, Eve files for bankruptcy under Chapter 7. -Refer to Fact Pattern 26-1.Regarding the sale of the cycle,the trustee may

A trustee has the power to set aside a sale of the debtor's property.

First State Bank is a secured party on a $5,000 loan to Geoff,who owns Happy Hours,a nightclub.When Geoff experiences financial difficulty,creditors other than First State Bank petition him into involuntary bankruptcy.The value of the secured collateral has substantially decreased in value.On its sale,the debt to First State Bank is reduced to $2,500.Geoff's estate consists of $100,000 in exempt assets and $2,000 in nonexempt assets.After the bankruptcy costs and back wages to Geoff's employees are paid,nothing is left for unsecured creditors.Geoff receives a discharge in bankruptcy.Later he decides to go back into business.By selling a few exempt assets and getting a small loan,he is able to buy the Idle Inn,a small,but profitable,restaurant.Geoff goes to First State Bank for the loan.The bank claims that the balance of its secured debt was not discharged in Geoff's bankruptcy.He signs an agreement to pay First State Bank the $2,500,and the bank makes a new unsecured loan to him.Is First State Bank correct that the balance of its secured debt was not discharged in bankruptcy What is the legal effect of Geoff's agreement to pay the bank $2,500 after the discharge in bankruptcy

If,within a certain time after a discharge,it is discovered that a debtor concealed property to defraud a creditor,the discharge may be revoked.

Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of

An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

Petunia is a debtor.Her employer Quantum Investments,Inc.,her ex-husband Rob,her alma mater State University,and Timely Credit Company are her creditors.For these parties,a petition in bankruptcy for relief through an individual's repayment plan could be filed by

One of the primary effects of a discharge is to relieve the liability of a co-debtor.

In January, Jazz Dance Studio owes Kay, its musical director, $1,800 for cur¬rent wages, receives $700 as a down payment for dance lessons from Lora, and pays a Music, Inc., a sheet music supplier, $1,500 of $3,000 owed. In February, the studio files for bankruptcy under Chapter 7. -Refer to Fact Pattern 26-2.Based on the size of the studio's estate in bankruptcy,each of Jazz's creditors will get only 10 percent of their claims.Regarding the payment to Music,Inc.,the trustee may

A petition for a discharge in bankruptcy under Chapter 7 may be filed by

Before a discharge is granted,a debtor can transfer property or make a payment in preference to one creditor over another.

Tippi believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a petition by

Seth files a petition for bankruptcy.Seth must include with the petition

Teona files a voluntary petition in bankruptcy for relief through a liquidation.Debts that will not be discharged include claims for

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy.A Chapter 13 bankruptcy plan must provide for