Nonetheless, courts have generally looked to state law, more specifically to In some situations, the holder of the secured claim consents to these modifications. Notwithstanding such an objection, the court can still approve the plan. Under nonbankruptcy law, section 9— provides a different, more limited form of redemption.
Section 9— only applies if i the debtor is not in bankruptcy and ii the secured party has repossessed the collateral. Section is not limited to situations in which the secured party has repossessed. Most liens cannot be avoided under sections f , , , , or What effect does bankruptcy have on a creditor that holds a valid in bankruptcy lien? The answers to problems 1, 2 and 3 assume that the liens are valid in bankruptcy. Copyright Page 6 results showing 5 best matches. Nutshell Series, In a Nutshell The publisher is not engaged in rendering legal or other professional advice, and this publication is not a substitute for the advice of an attorney.
If you require legal or other expert advice, you should seek the services of a competent attorney or other professional. Chapter VII. Exemptions 44 results showing 5 best matches. What if, before filing for bankruptcy, takes funds from her bank account which is nonexempt property under relevant state law and invests the money in an annuity which is exempt under state law?
A number of different reported cases have answered this question—in a number of different ways.
The debtor can choose the exemption law of the state in which she was living at the time of the bankruptcy filing only if that was the only state in which she was domiciled for the entire two years preceding bankruptcy. If the debtor has not maintained her domicile in the same state for the days two years before her bankruptcy filing, the governing exemption law is the exemption law of the state in which the debtor lived in the days before that days. In other words, what is then determinative is where that debtor lived between 2 years and 2.
In bankruptcy, an individual debtor may assert the exemptions to which she is entitled under the laws of the state of her domicile and under federal laws other than title 11, section b 2. Alternatively, individual debtors in a few states may claim the exemptions set out in section d. In the two years before bankruptcy, she lived in Texas, California and Iowa. Instead, we want to know where she lived for most of the six-month period before that two-year period.
A law student or lawyer needs to be able to answer two general questions about exempt property in bankruptcy: First, what property is exempt? Second what is the bankruptcy significance of exempt property status? Chapter XI.
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Claims results showing 5 best matches. The ninth priority is of limited application. There are a number of statements in reported cases, law review articles, and legal texts praising the theme of equality of distribution to creditors in bankruptcy proceedings. Some unsecured claims must be fully satisfied before any distribution is made to other unsecured claims. Under the Bankruptcy Act of , only claims that were both allowable and were permitted to participate in the bankruptcy distribution.
The requirement of provability excluded certain tort claims and certain other contingent and unliquidated claims from sharing in the distribution of the proceeds from the liquidation of the bankrupt estate, section The Bankruptcy Code eliminates the requirement of provability. Tort claims and other contingent and unliquidated claims may participate in the bankruptcy distribution, cf.
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The three-year period is measured from the last date including extensions for filing a return to the date of the bankruptcy petition. If, for example, files a bankruptcy petition on April 15, , claims for taxes for , and would be entitled to a priority. If, however, files a bankruptcy petition on December 7, , only claims for taxes for and would be entitled to a priority.
In a bankruptcy case, certain allowed unsecured claims are entitled to priority in distribution over other unsecured claims. Section a sets out the levels of priorities.
In its proof of claim form, a creditor can assert a priority and state the amount and basis therefore. Most of the litigation over whether a claim is entitled to a priority involve assertions of section a 1 administrative expense status. Chapter XXI. An assignment for the benefit of creditors has certain advantages over bankruptcy to creditors.
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Its flexibility and informality save time and expense, and frequently result in better liquidation prices. Generally, the costs of administration of an assignment will be lower than those of a bankruptcy case. Thus, in the absence of fraudulent conveyances, preferences, or liens voidable in bankruptcy, the dividends to creditors from an efficiently administered assignment will probably be larger than those received from the administration of the same property in bankruptcy.
The state statutes customarily require recording of the assignment, filing schedules of assets and liabilities, giving notice to the creditors and bonding of the assignee, and subject the assignee to court supervision. Virtually all state statutes prohibit the granting of a preference—all creditors except those with liens or statutorily created priorities are to be treated equally.
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Some statutes, however, expressly provide for the very relief sought by a preferential assignment at common law, i. Such provisions are, at best, of questionable validity. States may regulate the debtor-creditor relationship, but this regulation may not be a bankruptcy law. In determining whether a state statute is invalid as a bankruptcy law There are a number of reasons that a debtor might prefer a composition to bankruptcy. By making a composition with his creditors, the debtor avoids the stigma that attaches to bankruptcy while he achieves the same result—discharge from all or a substantial portion of his debts.
The composition discharge is even broader in scope than that of bankruptcy.
A composition releases a surety while a discharge in bankruptcy does not. More specifically, an assignment for the benefit of creditors is a voluntary transfer of assets by the debtor to another person in trust to liquidate the assets and distribute the proceeds to the creditors of the debt-transferred. To illustrate, makes an assignment for the benefit of creditors to When the debtor has made substantial preferences or fraudulent conveyances or allowed liens, voidable in bankruptcy to attach to his property, creditors may decide that an assignment for the benefit of creditors does not adequately protect their rights.
If so, the creditors may be able to force the debtor into bankruptcy. A general assignment for the benefit of creditors is a basis for ordering relief against the debtor in a creditor-commenced bankruptcy. See Open Chapter. Chapter IV. Commencement, Conversion and Dismissal of a Bankruptcy Case 63 results showing 5 best matches.
As this example illustrates, a single transaction outside of bankruptcy can create both a secured claim and an unsecured claim in bankruptcy. Chapter 15 of the Bankruptcy Code provides an alternative to commencing a full bankruptcy case in the United States. The debtor may not be a railroad, insurance company, or banking institution.
Railroads are eligible for bankruptcy relief only under Subchapter IV of Chapter 11; insurance companies and banking institutions are excluded from relief under the Bankruptcy Code because their liquidations are governed by other state and federal regulatory laws. A foreign debtor can start its own United States bankruptcy case by filing a voluntary bankruptcy petition if it has a residence or domicile in the United States, a place of business in the United States, or assets in the United States, section Similarly, the creditors of such a foreign debtor may begin a bankruptcy case in the United States by filing an involuntary bankruptcy petition, section b.
The Bankruptcy Code treats such foreign debtor filings no differently than filings by or against domestic debtors. Such foreign debtor cases will be independent of any foreign bankruptcy proceedings.
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In Chapter 7, 11 and 13 cases, a debtor or creditors can also base a motion to dismiss on section Chapter XX. Creditors with Special Rights results showing 5 best matches. Other sources of additional rights for certain creditors are state and federal statutes. Legislation has enlarged many of the liens recognized at common law and many of those asserted in equity. And, statutes have in many instances gone beyond the liens previously recognized in law or equity and created a number of additional liens. When we get inside of bankruptcy, we will see that bankruptcy law treats setoff different from recoupment.
The statute does not apply very often. There is no single uniform law governing real property security, and the rights of a mortgagee on default of the mortgagor vary considerably from state to state. There are, however, a number of similarities between Article 9 of the Uniform Commercial Code and the law of mortgages in most jurisdictions. Chapter VI. Property of the Estate 38 results showing 5 best matches.
In other words, the loss of property of the estate is the primary cost of Chapter 7 bankruptcy to the debtor; the receipt of the proceeds from the sale of property of the estate is the primary benefit creditors derive from a Chapter 7 bankruptcy. Assume, for example, , on January 10th and then files for bankruptcy on January 15th.
Consider the example of Chapter 11 cases involving business debtors. Successful rehabilitation of a business generally requires continued operation of the business. When a trustee is appointed in a Chapter 11 case, she takes possession of property of the estate. Section is considered later. X owns a new Chevrolet Silverado.
He borrowed the money to buy the truck from a bank which retained a security interest in the truck.