CH 21

Management 2106 with Rubinoff at Georgia Institute of Technology

About this deck

By: Sarah Biggers
Textbook:

Cengage Advantage Books: Fundamentals of Business Law: Summarized Cases
Created: 2011-04-30
Size: 33 flashcards
Views: 6

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lien

a claim against property to satisfy a debt or to protect a claim for payment of a debt

mechanic's lien

a creditor can file this lien on real property when a person contracts for labor, services or materials to improve property but does not pay

-creditor must fil within specific period

-property can be sold to satisfy debt if owner doesn't pay

artisan's lien

security device by which a creditor can recover from a debtor for labor and materials furnished in the repair of personal property

-creditor must possess property

judicial liens

-writ of attachment- court ordered seizure and taking into custody of property before securing a judgment for past due debt.

-write of execution- order directing the sheriff to seize and sell ay of the debtors nonexempt property

garnishment

occurs when a creditor collects a debt by seizing property of debtor (like wages or money in a bank account that a third party holds (like employer or bank). crditor obtains a judgment against debtor and serves it to third party

creditors composition agreements

contract between debtor and his or her creditors for discharge of the debtors liquidated debts on payment of a sum less than that owed

mortgage foreclosure

mortgager can foreclose on mortgaged property if the owner defaults, usually a judicial sale and proceeds go toward debt

2008 housing reform bill

foreclosure prevention act of 2008 helps some borrowers refinance their mortgages and prohibited certain lending practices to reduce foreclosures

suretyship

promise by a third person to be responsible for a debtor's obligation, not in writing, primarily liable- creditor can demand payment the moment the debt is due

guaranty

promise to be secondarily liable for the debt or default of another, must be in writing unless the main purpose exception rule applies

exempted real property

each state allows a debtor to keep the family home in its entirety or up to a specified amount

exempted personal property

this includes household furniture up to a specified dollar amount, clothing and other possessions, vehicle certain animals and equipment

goals of bankruptcy law

protect a debtor by freeing him or her from creditors claims to make fresh start and to insure fair treatment to creditors competing for debtors assets

bankruptcy proceedings

held in the federal bankruptcy courts, current law is based on bankruptcy reform act of 1978 and the bankruptcy abuse prevention and consumer protection act of 2005

chapter 7 liquidation

most common type- debtor declares his or her debts and gives all assets to a trustee who sells the nonexempt assets and distributes proceeds to creditors

who can file for liquidation

any person- individuals,partnerships, corporations

voluntary bankruptcy

debtor receives credit counseling, debtor files petition with court, debtor files schedules with the court, debtors attorney files affadavit, court can dismiss petition for abuse,

involuntary bankruptcy

debtor's creditors can force the debtor into bankruptcy proceedings

automatic stay

when petition is filed, an automatic stay suspends all action by creditors against the debtor

what property is included in estate?

interests in property presently held, community property, property transferred, etc.

everything but property acquired after the filing

exemptions-federal law

federal law exempts such property as interests in a residence 20,200, vehicle to 3,225, certain household goods to 10755, retirement, social secuirty etc.

state law exemptions

most states preclude that the use of federal exemptions- others allow to adebtor to choose between state and federal

limit on states homestead exemption

debtor must have lived in state for two years before filing a peition

trustee

after order for relief, a trustee is appointed to preside over the debtors property until a meeting of the creditors

-- duty is to collect and reduce to money the property of the estate and distribute proceeds

distribution of properties

unsecured creditors are paid by priority

discharge

prohibits any action to collect discharged debt- co debtor liability is not affected

things that can't be discharged

-paying taxes, goods obtained by fraud, debts not petitioned, domestiv support, student loans

chapter 11- reorganization

the creditors and debtor formulate a plan which the debtor pays a portion of its debts is discharged the rest and can continue business

cases of ch 11 being dismissed

-if rehabilitation is very unlikely, unreasonable delay, etc.

creditors' committees

committee of unsecured creditors is appointed to consult with the trustee or DIP

reorganization plan

who can file- only a debtor within first 120 days

what does plan do- fair and equitable in, in best interest of creditors, lays out rules

submitted to creditors for acceptance

ch 13 bankruptcy relief- individual payment plan

individuals with regular income and unsecured debts

trustee takes over

About this deck

By: Sarah Biggers
Textbook:

Cengage Advantage Books: Fundamentals of Business Law: Summarized Cases
Created: 2011-04-30
Size: 33 flashcards
Views: 6

About StudyBlue

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy