Deck 4: Information Gathering, Analysis, Counseling, and Drafting

Question 1

Explain how a notice received by a debtor from a creditor may affect the address to be used in giving notice to that creditor.

Answer 1

Under 11 U.S.C.A. § 342(c), a creditor may designate the address to use for providing notice to the creditor in bankruptcy cases.

Question 2

Discuss several factors to consider when determining whether a debtor should file under Chapter 7 or Chapter 13.

Answer 2

When a debtor is considering whether to file under Chapter 7 or 13, the debtor must consider whether the debtor can pass the means test for Chapter 7, whether the debtor is eligible for a discharge under Chapter 7, whether the debtor is in default on a debt secured by the debtor's residence and would like to keep the residence, and whether the debtor owes non-dischargeable debt that is entitled to priority and could be paid under a Chapter 13 plan.

Question 3

Mary Valesquez and Cynthia Webster formed a partnership for the purpose of operating an interior decorating shop. Mary and Cynthia found it difficult to pay their creditors, and after the first year in business the shop closed. Mary and Cynthia are eligible to file a joint petition under Chapter 7.

Answer 3

False

Question 4

Dana Jones, an individual, has a number of debts, one of which is a loan she obtained to pay college tuition. Dana should file a Chapter 13, as this debt is dischargeable under Chapter 13 but not under Chapter 7.

Question 5

MATCHING
Match each statement with the correct item below.
a.
Municipalities.
b.
Family farmers or family fishermen with regular annual income.
c.
All persons except railroads, insurance companies, and certain banking institutions.
d.
Individuals with regular income and individuals with regular income and spouse.
e.
All persons except insurance companies, certain banking institutions, stockbrokers, and commodity brokers.
Chapter 7
11. Chapter 9
12. Chapter 11
13. Chapter 12
14. Chapter 13

Question 6

A debtor must be able to document the debtor's identity with a photo ID if requested by the bankruptcy court, the United States trustee, or the case trustee.

Question 7

A creditor may file a notice in a bankruptcy case indicating the address to be used by all parties for giving that creditor notice in that particular bankruptcy case.

Question 8

In cases under Chapters 7, 11, and 13, an individual debtor must, upon the request of the bankruptcy court or the United States trustee, file copies of all federal tax returns due while the case is pending.

Question 9

When interviewing a prospective debtor, a paralegal should inquire whether an individual has been a debtor in a case pending within the past year, because that may affect whether the automatic stay goes into effect and the duration of the stay.

Question 10

What is the effect of a debtor in a case under Chapter 7 and Chapter 13 failing to complete an instructional course in personal financial management?

Question 11

A creditor may send a notice to any bankruptcy court indicating the address that must be used by every bankruptcy court in giving notices to that creditor.

Question 12

How long prior to a bankruptcy filing does an individual debtor have to receive a briefing from an approved nonprofit budget- and credit-counseling agency?

Question 13

Charles Smithfield, a fifth-grade teacher, was unable to pay his bills as they came due. If Charles received a briefing on opportunities available for credit counseling from an approved nonprofit budget- and credit-counseling agency within the past 180 days, Charles is eligible to file for bankruptcy under Chapter 7, 11, or 13.

Question 14

List several factors to consider when determining whether a debtor should file under Chapter 7 or Chapter 11.

Question 15

The Waterfront Fish Market was incorporated under the laws of Delaware. For many years the market was able to show a small profit. About a year ago a new fish market opened nearby and the Waterfront Fish Market lost some of its customers. For the past several months, the market has been unable to pay its creditors. The market could file for bankruptcy under Chapter 7, 11, or 13.

Question 16

List the documents that must be filed within 45 days of the filing of a petition by an individual debtor in a Chapter 7 or Chapter 13 case in order to prevent the case from being dismissed automatically.