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PRL 101 slides, Nov. 24

Ted Major
November 24, 2015

PRL 101 slides, Nov. 24

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Ted Major

November 24, 2015
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  1. Bankruptcy law
    creative commons licensed (BY) flickr
    photo by ryaninc: https://flic.kr/p/66cCEX

    View Slide

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

    View Slide

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

    View Slide

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

    View Slide

  5. 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

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

    View Slide

  7. 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

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

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

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  10. 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

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  11. Secured creditors
    • Mortgage
    • Car payments

    View Slide

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

    View Slide

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

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  14. 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

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

    View Slide

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

    View Slide