Bankruptcy law creative commons licensed (BY) flickr photo by ryaninc: https://flic.kr/p/66cCEX

Bankruptcy in-class assignment creative commons licensed (BY) flickr photo by kevin dooley: https://flic.kr/p/6m6JvE

Bankruptcy purpose? • “Fresh Start” • Treat creditors fairly

Bankruptcy • Petition • Debtor • Creditor • Automatic stay • Discharge • Chapter 7 (liquidation): individual or business • Chapter 11 (reorganization): business, some individuals • Chapter 13 (repayment): individual

Role of paralegal Ch. 7 fee: $500-900 • Client intake • Client meetings • Gathering documentation • Document preparation • Filing • Case Management/Electronic Case Files (CM/ECF) • Bankruptcy software

BR Procedure • Credit counseling • Petition – Automatic stay – Unless repeat filer • 341 Meeting • Confirmation hearing • Liquidation/Repayment/Reorganization • Debtor education • Discharge

For Individual Debtors • Pre-filing credit counseling • Pre-discharge financial education • Means test: –< median income to file ch. 7 –Alabama: –$40,351 for 1 –$67,407 family of 4 –Otherwise, ch. 13

Objections to confirmation • Serial filing • Abusive filing • Lack of protection • "Cram down" • Valuation of collateral • Amount of arrears

Repayment priority • Attorneys/Court • Priority claims • Secured creditors • Unsecured creditors

Priority claims • domestic support obligations to spouse or child • domestic support obligations to state • administrative expenses (trustee/BA) • wages & salaries owed • employee benefits owed • rental deposits owed • taxes owed • DUI injuries

Secured creditors • Mortgage • Car payments

Unsecured creditors • Credit cards • Medical bills • Utilities • Cable • Internet • Phone • Other bills

Objections to discharge: particular debt • non-dischargeable • not listed or scheduled • fraud in loan application/financial statement

Objections to discharge: All debts • Fraud • Perjury • Fraudulent transfer • Perjury • Recent bankruptcy • Failure to keep records • Hiding assets • Destruction of assets • Failure to obey court order

Non-dischargeable debts • taxes • loans obtained by false pretenses • not listed/scheduled • fraud, embezzlement, larceny • domestic support • willful & malicious injury

Non-dischargeable debts • government fine • DUI judgment • criminal restitution • condo fees • criminal court fees • pension fund payments