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Cards In This Set
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Give the vocab word: State laws that protect certain items of property owned by debtors to satisfy debts
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Exempt property
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Give the vocab word: exempt property that may include all or a portion of a debtors equity in their home
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Homestead exemption
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What options do debtors have to choose from?
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1) workout a payment or debt reduction plan with creditors, refinance debts, or consolidate debts2) protect assets keeping on secured debt payments, even if unsecured debts are delinquent3) file bankruptsy to seek protection from creditors
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Give the vocab word: working out a repayment plan with creditors
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Compsition agreement
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When does bankruptsy occur?
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When a debtor is unable to pay bills when due and seeks protection from creditors by filing a bankruptcy petition under the US Bankruptsy Code. Debtor DOES NOT have to be "insolvent" aka bankrupt or wiped out of money complely
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Describe a situation where filing for bankruptcy would be the best choice
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If sued or collection or if foreclosure or reposession proceedings are commenced
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What are the primary comsumer bakruptcy factors?
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Loss of jobs (income), medical problems, judgement against debetor, divorse, poor financial managment, recession, inability to pay mortgage
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What are the goals of the bankruptcy law?
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* to protect debtors by giving them a "fresh state free from creditors claims"* and to ensure equitable tratment for creditors who have claims against debtors
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Give the vocab word: creditors who are allowed to repossess their collateral after a certain period of time
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Secured creditors
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Give the vocab word: creditors who share the debtor's assets in proportion to the unpaid debt owed to them
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Unsecured creditors
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In what Article and Section does the constitution give Congress power to establish :uniform Laws on the subject of Bankruptsies in the US"?
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Article I, Section 8
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What consists of deferal statutes that govern bankrumptsies AND has 8 chapters?
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The Bankruptcy Code
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Who has exclusive jurisdiction over bankrupcy cases?
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US Bankrupcy Courts (part of the federal district court system) do
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What 3 types of bankruptcy filings do we need to know for the test?
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Chapter 7: LiquidationChapter 13: Individual repayment plansChapter 11: Buiness reorganization
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Which Chapter discuses individuals and businesses seeking to liuidate and have their debts discharched?
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Chapter 7: Liquidation
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