Chapter 7 Involuntary Bankruptcy Petition Flashcards Preview

A Wiley Review Notes REG > Chapter 7 Involuntary Bankruptcy Petition > Flashcards

Flashcards in Chapter 7 Involuntary Bankruptcy Petition Deck (7)
Loading flashcards...
1
Q

If there is less than 12 Creditors

A

Only 1 creditor can force a debtor into Bankruptcy as long as that creditor is owed at least $15,325 of unsecured debt. If not then the aggregate claim total must equal or exceed $15,325

2
Q

Secured Debt

A

is not included in the claim total

3
Q

You can be forced into bankruptcy if

A

If you are not paying your debts as they become due

4
Q

Once petition is filed

A

Court appoints an interim trustee

Automatic stay against the debtor estate

5
Q

After selling all the Debtor assets and payment of administrative expenses what is the order or priority

A

1) Secured Debt (higher priority over admin expenses)
2) Unpaid income taxes
3) Unsecured Creditors that filed on time (including excess on home sold)
4) Unsecured Creditors who did not file on time

6
Q

If there are more than 12 Creditors

A

At least 3 can force a debtor into Bankruptcy as long as the total owed is at least $15,325 of unsecured debt

7
Q

Who are exempt from involuntary bankrupcy

A

Persons (individuals, partnerships, corporations) owning less than $15,325
Farmers
Charitable Organizations

Decks in A Wiley Review Notes REG Class (99):