PRL 101 slides, Nov. 24

CC-BY-SA

Transcript

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

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

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

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

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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
   

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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
    

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

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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
    

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

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