Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Advanced BLaw
Exam 3
| Question | Answer |
|---|---|
| What occurs when one party makes a loan to another party? | Credit |
| Who is the borrower in a credit transaction? | Debtor |
| Who is the lender in a credit transaction? | Creditor |
| What is credit that does not require any security to protect payment of the debt? | Unsecured Credit |
| What are some characteristics of unsecured credit? | Creditor relies on the debtor's promise to repay the principal (plus int) when it's due / Creditor may bring legal action if the debtor fails to make payments / if debtor is judgement proof, creditor can't collect |
| What is credit that requires security that secures payment of the loan? | Secured Credit |
| What may be repossessed to recover the outstanding amount if the debtor fails to make payment? | Collateral |
| What may be taken in real, personal, intangible, or other property in a secured credit? | Security Interests |
| What is an arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan? | Mortgage |
| What type of instrument is a mortgage? | Two Party Instrument |
| Who is the owner/debtor in a mortgage? | Mortgagor |
| Who is the creditor in a mortgage? | Mortgagee |
| What is used as collateral in a mortgage? | Real Property |
| What is an instrument that evidences a borrower's debt to the lender? | Note |
| What is an instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan? | Deed of Trust |
| Why type of instrument is a deed of trust? | Three Party Instrument |
| Where is the legal title of property placed until the trustor pays the beneficiary in a deed of trust? | With the Trustee |
| Who is the turstor for a note/deed of trust? | Owner-Debtor (borrower) |
| Who is the beneficiary for a note/deed of trust? | Creditor (Lender) |
| What is a statute that requires a mortgage or deed of trust to be recorded in the county recorder's office of the county in which the real property is located? | Recording Statute |
| T/F The Recording statute produces a public record. | True |
| What gives potential lenders, purchasers notice of claims against property? | Recording Statute |
| T/F Failure to record does not affect legality of instrument or rights of parties to the instrument. | True |
| What is a legal procedure by which a secured creditor causes the judicial sale of the secured real estate to pay a defaulted loan? | Foreclosure Sale |
| How many states permit a foreclosure sale? | All States |
| What is a power in a mortgage or deed that permits foreclosure with court proceedings and sale of the property through an auction? | Power of Sale |
| How many states permit a power of sale? | Most States |
| What is a judgement of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan? | Deficiency Judgement |
| What establishes priority for creditor payment? | Recording the the Recording Statute - notice to 3rd party creditors |
| What is a statute that prohibits deficiency judgement regarding certain types of mortgages, such as those on residential property? | Antideficiency Statute |
| What is a right that allows the mortgagor to redeem real property after default and before forclosure? | Right of Redemption |
| Who pays the full amount of the debt incurred by the mortgagee because of the mortgagor's default under right of redemption? | Mortgagor |
| What is an arrangement in which the owner of real property sells property to a purchaser and extends credit to the purchaser? | Land Sales Contract |
| What is a contractor's, laborer's, and material person's statutory lein that makes the real property to which services or materials have been provided security for the repayment of the services and materials? | Mechanic's Liens on real property |
| Who is the mechanic's liens on real property subject to? | Debtor's right of redemption |
| What is a written document signed by a contractor, subcontractor, laborer, or material person, waiving his or her statutory lien against real property? | Lien release |
| What is an arrangement in which a third party promises to be primarily liable with the borrower for the payment of the borrower's debt? | Surety Arrangment |
| What is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt? | Guaranty arrangment |
| Who can defenses that the principal debtor has against the creditor be made by in Surety and Guaranty Arrangements? | By the surety and guarantor |
| What is a prejudgment court order that permits the seizure of a debtor's property while a lawsuit is pending? | Writ of Attachment |
| What is a postjudgement court order that permits the seizure of the debtor's property that is in the possession of the debtor? | Writ of Execution |
| What is a postjudgement court order that permits the seizure of a debtor's property that is in the possession of third parties? | Writ of Garnishment |
| What is a federal law that permits debtors who are subject to a writ of garnishment to retain a specified or amount of their earnings, being greater than 75% of weekly disposable earnings or an amount = to 30 hours of fed min wage? | Title III of the Consumer Credit Protection Act |
| What is a transaction in which a creditor makes a loan to a debtor in exchange for the debtor's pledge of personal property as security? | Secured Transaction |
| What is property in which security interest is taken? | Collateral |
| What are the 2 types of collateral? | Personal or Real Property |
| What type of property is a mortgage or deed of trust? | Real Property |
| What type of property is tangible or intangible and governed by Article 9 of the UCC? | Personal Property |
| Give examples of tangible personal property. | Equipment, vehicles, funiture |
| Give examples of Intangible personal property. | securities, patents, trademarks |
| What type of credit is where the creditor takes no interest in the collateral and if the debtor defaults, the creditor must sue the debtor? | Unsecured Credit |
| What type of credit has collateral pledged by the purchaser, and the creditor recovers the collateral in case of default? | Secured Credit |
| Who is a person has has an ownership or other interest in the collateral and owes payment of a secured obligation? | Debtor |
| Who is a person in whose favor a security interest is created or provided under a security agreement? | Secured Party |
| What is an interest in the collateral, such as personal property or fixtures, which secures payment or performance of an obligation? | Security Interest |
| What is an agreement that creates or provides for a security interest? | Security Agreement |
| What is property subject to security interest? | Collateral |
| What is a document filed by the secured party which give constructive notice of its security interest in personal property? | Financing Statement |
| What is a writing document signed by a debtor the creates a security interest in personal property? | Security Agreement |
| Who is the signer in a security agreement? | Debtor |
| What makes a valid security agreement? | clearly describe the collateral, contain the debtor's promise to repay the creditor, set forth the creditor's rights upon the debtor's default, and be signed by the debtor |
| What is a situation in which a creditor has an enforceable security interest against a debtor and can satisfy the debt out of the designated collateral? | Attachment |
| What are the characteristics of attachment? | debtor must have legal right in or possession of collateral, on secured party attach collateral, creditor has enforceable security interest in the property, debt can be satisfied out of collateral subject to priority rules |
| What is a process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral? | Perfection of a security interest |
| What are the methods of perfecting a security interest? | Perfection by filing a financing statement, perfection by possession of collateral, or perfection by a purchase money security interest in consumer goods |
| When does the creditor automatically obtains purchase money security interest when extending credit to consumer to purchase consumer goods? | Perfection by a purchase money security interest in consumer goods |
| What is it if a secured creditor has physical possession of the collateral and no financing statement has to be filed and other potential creditors are put on notice of the creditor's secured interest in the property? | Perfection by possession of the collateral |
| What is a document filed by a secured party that ends a secured interest because the debt has been paid? | Termination statement |
| When must a termination statement be filed? | Within one month after the dept is paid or 20 days after receipt of the debtor's written demand |
| What is the order in which conflicting claims of creditors in the same collateral are solved? | Priority of Claims |
| How are the priority of claims determined? | Whether the claim is unsecured or secured and the time at which secured claims were attached or perfected |
| What are the rules for determining priority claims? | Secured Vs Unsecured Claims, Competing Unperfected Secured Claims, Perfected vs Unperfected claims, or Competing perfected secured claims |
| What is it if a creditor who has the only secured interest in the debtor's collateral has priority over unsecured interests? | Secured vs Unsecured Claims |
| What is it if two or more secured parties claim an interest in the same collateral but neither has a perfected claim, the first to attach has priority? | Competing Unperfected Secured Claims |
| What is it if two or more secured parties claim an interest in the same collateral but only one has perfected his or her security interest, the perfected security interest has priority? | Perfect vs Unperfected Claims |
| What is it If two or more secured parties have perfected security interests in the same collateral, the first to perfect has priority? | Competing Perfected Secured Claims |
| What is a security interest in property that was not in possession of the debtor when the security agreement was executed? | Floating Lien |
| What can a floating lien attach to? | After acquired property, sale proceeds, future advances |
| What is property that a debtor acquires after a security agreement is executed? | After Aquired property |
| What is the resulting assets from the sale, exchange, or disposal of collateral subject to a security agreement? | Sale Proceeds |
| What are the funds advanced to a debtor from a line of credit secured by collateral? | Future advances |
| What is a buyer in the ordinary course of business? | buy in good faith, without knowledge that sale violates rights of another person in the goods, purchase goods in the ordinary course of business from merchant, and takes goods free of any perfected or unperfected security interest |
| What constitutes default? | Failure to make scheduled payments when due, bankruptcy of the debtor, breach of the warranty of ownership as the collateral, other events defined by the parties in a security agreement |
| What are the remedies for default? | Take possession of the collateral, retention of collateral, disposal of the goods, disposition of collateral, and deficiency judgement |
| Go to minute 60 of the chapter 27 video for study of the short answer problem | |
| What is a statutory lien given to workers on personal property to which they furnish services or materials in the ordinary course of business? | Artisan's Lien |
| What type of law is bankruptcy? | Federal Law |
| What is the debtor friendly bankruptcy act? | Bankruptcy Reform Act of 1978 |
| What is the creditor friendly bankruptcy act? | Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 |
| What are the different types of bankruptcy? | Liquidation, Reorganization, Adjustments of Debts of a Family Farmer or Fisherman with Regular Income, and Adjustments of Debts of an Individual with Regular Income |
| What are the special federal courts that hear and decide bankruptcy cases? | U.S. Bankruptcy Courts |
| How long are bankruptcy judges appointed? | 14 year terms |
| How many bankruptcy courts are in each federal district? | 1 |
| Who is the federal government official who is responsible for handling and supervising many of the administrative tasks of a bankruptcy case? | US Trustee |
| What is the goal of federal bankruptcy law to grant a debtor relief from some of his or her burdensome debts while protecting creditors? | Fresh Start |
| What must the debtor submit to before filing a petition of relief? | Pre and Post Petition Counseling |
| Who must receive pre petition counseling within 180 days prior to filing a petition? | Debtor |
| What is covered in pre petition counseling? | Types and uses of credit, budget analysis -- this is provided by nonprofit credit counseling agencies |
| How are bankruptcy cases commenced? | Filing a petition |
| What is filed by a debtor that states that the debtor has debts which it cannot pay? | Voluntary Petition |
| What is filed by creditors of a debtor that alleges that the debtor is not paying his or her debts as they become due? | Involuntary Petition |
| What year was the act requires attorney certification of information in the bankruptcy petition? | 2005 |
| What must a debtor filing a voluntary petition submit? | List of secured and unsecured creditors, all property owned, statement of debtor's financial affairs, monthly income, current income and expenses, evidence of wages withing 60 days of filing, copy of most recent fed tax return |
| Who must certify the accuracy of the debtor's schedules submitted? | Debtor's attorney |
| What is an order that occurs upon the filing of either a voluntary petition or an unchallenged involuntary petition, or an order that is granted after a trial of a challenged involuntary petition? | Order for Relief |
| What is a document required to be filed by a creditor that states the amount of his or her claim against the debtor? | Proof of Claim |
| What is a document required to be filed by an equity security holder that states the amount of his or her interest against the debtor? | Proof of Interest |
| What is the suspension of certain legal actions by creditors against a debtor or the debtor's property? | Automatic Stay |
| What is included within an automatic stay? | Instituting or maintaining legal actions to collect pre-petition debts, enforcing judgments obtained against the debtor, obtaining, perfecting, or enforcing liens against property of the debtor, nonjudicial collection efforts |
| What is a court order that relieves a debtor of the legal liability to pay his or her debts that were not paid in the bankruptcy proceeding? | Discharge |
| What part of debts are discharged? | All or part |
| What are some debts that are not discharged? | Student loans, taxes owed, claims arising from fraud of debtor, domestic support obligations, certain debts recently incurred, fraudulent transfers |
| What is an agreement entered into by a debtor with a creditor prior to discharge, whereby the debtor agrees to pay the creditor a debt that would otherwise be discharged in bankruptcy | Reaffirmation agreement |
| What is the debtor's property and earnings that comprise the estate of a bankruptcy proceeding and includes interest of debtor and the debtor's spouse in community property? | Bankruptcy Estate |
| What is the property that may be retained by the debtor pursuant to federal or state law that does not become part of the bankruptcy estate? | Exempt Property |
| What exemption details that equity in a debtor's home that the debtor is permitted to retain? | Homestead Exemption |
| Who may provide more liberal exemptions for exempt property than federal law? | States |
| What is a form of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is distributed to creditors, and any unpaid debts are discharged? | Liquidation |
| Can debtor's future income be reached in a liquidation? | No |
| What is also termed as straight bankruptcy? | Liquidation |
| What act added the median income test and means test? | Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 |
| What does the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 state? | Debtors at or below the state's median income may file while debtors above the median income must satisfy the means test calculation |
| What does the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 often force debtors to do? | Use the Debt Adjustment bankruptcy procedure which requires payment of future income to pay pre-petition debts |
| What tests if a debtor's median family income is at or below the state's median family income for a family the same size as the debtor's family, the debtor can receive liquidation relief? | Median Income Test |
| What test applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family? | Means Test |
| What are the requirements of the means test? | Disposable income - debtor's actual income and subtracting expenses for a typical family the same size as the debtor's family |
| What is distributed to debtor's secured and unsecured creditors pursuant to the statutory priority established by the bankruptcy code? | Nonexempt Property |
| Who has the priority on claims? | Secured Creditors |
| What is an oversecured secured creditor paid? | Amount of secured interest |
| What is an undersecured secured creditor paid? | Becomes unsecured creditor for the amount still owed |
| What is the priority of distribution to unsecured creditors? | domestic support, fees and expenses of administering the estate, secured claims of "gap creditors" wages/salaries, commissions, contributions to employee benefit plans, farmers & fishermen storage/processing, consumer cash claims, taxes, gen uns creditor |
| What is a Liquidation discharge? | termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a liquidation procceding? |
| T/F The debtor is not responsible for paying prepetition debts out of postpetition income | True |
| What are some acts that bar a discharge? | false rep of financial position, debtor transferred, concealed, destroyed property of the estate to defraud creditors, false,destroy,conceal records on fiancial condition, failed appear at creditor meetings, fail to complete personal finc mgnt course |
| What is the rehabilitation form of bankruptcy? | Adjustment of debts of an individual with regular income |
| What are the advantages of adjustments of debts of an individual with regular income? | Debtor may avoid stigma, retain more property, incur fewer expenses, and creditor may recover greater percentage of debts |
| When does the court supervise the plan for payment of unpaid debts in installments? | Adjustment of Debts of an Individual with Regular Income |
| What brings about a petition for the adjustments of debts of an individual with regular income? | Voluntary filing of petition by debtor with regular income |
| Can a petition for adjustments of debts of an individual with regular income be filed involuntarily by a creditor ? | No must be by debtor with regular income |
| For a adjustments of debts of an individual with regular income what type of debts must be primary? | Consumer Debt |
| What is the max secured debt for adjustments of debts of an individual with regular income? | $1,149,525 in secured debts |
| What is the max unsecured debt for adjustments of debts of an individual with regular income? | $383,175 in unsecured debts |
| What type of property is included in a adjustments of debts of an individual with regular income? | All nonexempt property of debtor at commencement of case, nonexempt property acquired before case is close, and earning/future income |
| What are the characteristics of the adjustments of debts of an individual with regular income plan of payment? | Filed within 90 days after the order for relief, be accepted by secured and unsecured creditors or approved by the court, during the plan period, unsecured creditors might not receive full payment of the debt owed to them |
| What are the conditions to confirm a plan of payment for a adjustments of debts of an individual with regular income? | proposed in good faith, passes feasibility test, plan is in the best interest of the creditors, debtor has paid all domestic support obligations owed, debtor has filed all applicable federal, state, and local tax returns |
| What is a adjustments of debts of an individual with regular income discharge? | granted to the debtor after the debtor's plan of payment is completed |
| When is a discharged under adjustments of debts of an individual with regular income invalid? | If a adjustments of debts of an individual with regular income discharge was received in the past 2 years or any other discharge in the past 4 |
| What is a bankruptcy method that allows the reorganization of the debtor's financial affairs under the supervision of the bankruptcy court? | Reorganization |
| Who is the reorganization bankruptcy for? | individuals, partnerships, corporations, and other business entities |
| When does the debtor reorganize with new capital structure and may be relieved of portions of debts, burdensome executory contracts and unexpired leases? | Reorganization Bankruptcy |
| What is an automatic stay for reorganization bankruptcy? | filing of petition stays actions by creditors to recover debtor's property, foreclosure auctions / allows debtor to keep its assets to stay in business |
| Who is a debtor who is left in place to operate the business during the reorganization proceeding? | Debtor in possession |
| What is a committee of unsecured creditors that is appointed by the court to represent the class of unsecured claims? | Creditors' Committee |
| T/F A committee may not be appointed to represent secured creditors and equity holders? | False - they can be appointed |
| What is a contract or lease that has not been fully performed? | Executory Contract --- unexpired lease |
| What may a debtor reject in a reorganization bankruptcy? | Executory contracts and unexpired leases |
| What sets forth a proposed new capital structure for a debtor to assume when it emerges from reorganization bankruptcy? | Plan for Reorganization |
| What are the types of confirmations for the plan for reorganization? | Acceptance Method and Cram-Down Provision |
| What is used to confirm the plan if the plan is in the best interest of the creditors, is feasible, and each class of creditors accepts the plan? | Acceptance Method |
| What is a provision whereby the court confirms a plan of reorganization over an objecting class of creditors if certain requirements are met? | Cram Down Provision |
Created by:
Heritage2016