BUL 4421 Final - FAU Gendler Chapter 32 Questions and Answers Updated.

CHAPTER 32 - Answer Bankruptcy and Reorganization Bankruptcy Law - Answer is federal law; however, state laws regarding property and debts may affect the bankruptcy proceeding. Types of Bankruptcy Relief (3): - Answer 1. Chapter 7 2. Chapter 11 3. Chapter 13 Chapter 7 Bankruptcy - Answer Type of Bankruptcy: i. Sale of debtor's assets by trustee and the distribution of money to creditors The most familiar type of bankruptcy under chapter 7 - Answer liquidation, sometimes called straight bankruptcy Liquidation - Answer occurs when a debtor turns over all assets to a trustee, an individual who takes over administration of the debtor's estate. Chapter 11 Bankruptcy - Answer Bankruptcy that: Reorganization of the debtor's financial affairs under the supervision of the bankruptcy court. Chapter 13 Bankruptcy - Answer Bankruptcy that: Reorganization of an individual's debts Chapter 13 - Bankruptcy Eligibility - Answer Individuals exclusively; have a regular income, owe less than $336,900 for fixed unsecured debts or $1,010,650 for fixed secured debts Types of Liquidation (2): - Answer 1. Voluntary 2. Involuntary Voluntary Liquidation Proceeding - Answer when the debtor decides to file for bankruptcy, he/she files a voluntary petition