This website uses cookies to ensure you have the best experience. Learn more

Bankruptcy Essay

1234 words - 5 pages

Bankruptcy Assignment
Warren and Westbrook, The Law of Debtors and Creditors

Sara Israelyan
Spring Semester 2011
University of Minnesota Law School

March, 2011

Warren and Westbrook, The Law of Debtors and Creditors
8.1 Absent bankruptcy, what can Harv and Lois protect as the creditors begin to move in? What if they filed a Chapter 7? What could they protect if they lived in Cheyenne, Wyoming?
When considering bankruptcy, pre-bankruptcy planning is one of the most important steps for Harv and Lois. In a Chapter 7 bankruptcy, the TIB will take all non-exempt valuable property that he can sell to distribute the money to the creditors. The main idea behind the Chapter ...view middle of the document...

  In the states that require debtors to utilize the state exemptions, there are still some federal exemptions which are available to debtors.
The following items will be exempted under Texas and Wyoming law:
| | Texas | | Wyoming | |
Item | Value | Exempt? | Provision | Exempt? | Provision |
Household furniture & Appliances | $ 8,000 | Yes | 42.002(a)(1) | Yes | 1-20-106(a)(iii) |
Clothing | $ 2,000 | Yes | 42.002(a)(5) | Yes | 1-20-105 |
Law books | $ 2,400 | Yes | 42.002(a)(4) | Yes | 1-20-106(a)(i) |
Moped | $ 800 | Yes | 42.002(a)(9) | Yes | 1-20-106(a)(iv) |
1970 Convertible | $ 500 | No | 42.002(a)(9) | Yes | 1-20-106(a)(iv) |
Cash Value on L’s insurance | $ 2,000 | Yes | 1108.0531 | Yes | 1-20-110(a)(i) |
Wedding ring | $ 1,000 | Yes | 42.002(a)(6) | It depends | 1-20-105 |
Computer | $ 1,200 | Yes | 42.002(a)(4) | It depends | 1-20-106(a)(iii) |
100 shares | $ 5,000 | No | 42.0021 | Yes | 1-20-106(a)(b) |
Joint checking account | $ 400 | No | | No | |
Computer set up | $ 7,500 | Yes | 42.002(a)(1) | No | 1-20-106(a)(iii) |
Friendship sloop | $ 6,000 | Yes | 42.002(a)(4) | No | 1-20-106(a)(iv) |
Wheelchair | $ 18,000 | Yes | 42.002(a)(9) | No | 1-20-106(a)(iv) |
Fluffy | $ 200 | Yes | 42.002(a)(11) | Yes | |
Soccer ball | $ 2 | Yes | 42.002(a)(8) | Yes | |
Total | $ | | | | |

8.2. If Suzan decides to declare bankruptcy, what can she keep? If Suzan and Mr. B had been living in Odessa, Texas, would the outcome be the same?
Generally, under both Wyoming and Texas law, life insurance benefits are exempt from bankruptcy proceedings. Under Wyoming law, Section 26-15-129 applies to this matter.
Assuming that Suzan (widow) is the legal beneficiary of the insurance policy after her husband’s death (i.e. a policy is payable to the person other than the insured if and to the extent that a facility-of-payment clause or similar clause in the policy permits the insurer to discharge its obligation after the death of the individual insured by paying the death benefits to a person as permitted by the clause), an unlimited amount of the insurance policy (i.e. $ 1 million) will be exempted.
Under Texas law, section 1108.0531(a)(1) applies. This section applies to any benefits to be provided to a beneficiary (Suzan), an insurance policy issued by a life. There is no limit on the amount (i.e. $ 1 million).

Suzan’s double wide trailer will also be exempted under both Wyoming (section 1-20-104 which states that a house trailer or other movable home, the value of which does not exceed $...

Other Papers Like Bankruptcy

Adelphia Communications’ Bankruptcy Essay

1909 words - 8 pages Adelphia Communications’ Bankruptcy Bankruptcy The case talks about the situation Adelphia went through after the governance problem and fraud they had that led them to bankruptcy. Adelphia being a family owned company; by April 2005 they decided to sell out the remaining assets of the company to the one of the other 3 big cable companies; Time Warner, Comcast and Cablevision; each one of them offered different amount in the bid

Bankruptcy of a Retail Giant Essay

747 words - 3 pages Bankruptcy of a Retail Giant Blunders by former Chairman Charles Conaway and President Mark Schwartz led Kmart into bankruptcy. The retailer had to close 284 stores, including this one in Novi, and lay off 22,000 workers. They lived the good life of gated estates, a 47-foot yacht, corporate jets at their beck and call, and multiple pay hikes, perks, bonuses and loans. But even as Kmart Corp. struggled for survival, its chairman, Charles

Do Bankruptcy Laws Unjustly Favor Lenders?

1088 words - 5 pages Do Bankruptcy Laws unjustly favor Lenders? Intro Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Bankruptcy law provides for the development of a plan that allows a debtor to resolve his debts through the division of his assets among his creditors. Although the goal of the modern bankruptcy is to allow the debtor to have a “fresh start,” and to be granted relief

Bankruptcy and Restructuring at Marvel Entertainment Group

5152 words - 21 pages Bankruptcy and Restructuring at Marvel Entertainment Group Bankruptcy and Restructuring at Marvel Entertainment Group 1. Why did Marvel file for Chapter 11? Were the problems created by bad luck, bad strategy or bad execution? Before addressing its bankruptcy, it is necessary to have a general understanding of the company being analyzed. Marvel Entertainment Group began in 1939 as Timely Publications, a comic book publishing company that

American Suzuki Bankruptcy

1371 words - 6 pages Sitecore Case Study: Suzuki – Improving the user experience for its dealers and customers, while streamlining site management Summary Suzuki Motor Corporation (SMC) founded The Motorcycle and ATV Division of American Suzuki Motor Corporation (ASMC), Brea, CA, in 1963. ASMC markets motorcycles,ATVs and Scooters via an extensive dealer network throughout 49 states. ASMC’s parent company, Suzuki Motor Corporation, based in Hamamatsu

Amgen Pharmaceutical Faces Bankruptcy

812 words - 4 pages Deciding How to Decide The functions of every manager in an organization is inclined on making the decisions on the organization and finding ways on how to interact with the stakeholders. Decision styles normally addresses on how the manager will be effective in terms of performance. The decision style has the strengths and weakness. Through the decision theory, the manager of the company will be able to understand the character of the employees

Assignment 5 Sample

1320 words - 6 pages Business Law & Bankruptcy Assignment #5 When Josh was asked, during a bankruptcy proceeding, whether he had ever been sued, he responded that he had not. In fact, he had once been sued for intentional infliction of emotional distress. That suit had been settled many years earlier and had no financial impact on Josh today. Josh’s debts were discharged in bankruptcy. Creditors want the discharge revoked because of Josh’s lie. Should a

Legal and Ethical Isues

694 words - 3 pages technology continued to advance, new gaming and entertainment consoles became ever more popular and Atari loss previous momentum and slowly dwindled away. Filing Bankruptcy Atari US filed Chapter 11 bankruptcy protection January 2013 to break away from its unprofitable parent company to “secure independent capital for future growth, primarily in the areas of digital and mobile games” (Pepitone, 2013). Under Chapter 11 bankruptcy, the debtor

Fsa And Valuation

834 words - 4 pages Problem 5.16 – Delta Air Lines, Inc. Computing and Interpreting Risk and Bankruptcy Prediction Ratios for a Firm That Declared Bankruptcy. a. (1) Current Ratio: 2000: $3,205/$5,245 = 0.61 2001: $3,567/$6,403 = 0.56 2002: $3,902/$6,455 = 0.60 2003: $4,550/$6,157 = 0.74 2004: $3,606/$5,941 = 0.61 (2) Operating Cash Flow to Current Liabilities Ratio: 2001: $236/0.5($5,245 + $6,403) = 0.041 2002: $225/0.5($6,403 + $6,455) = 0.035 2003: $142/0.5

Finp 5808

404 words - 2 pages you face if you run into trouble. There’s not a single forms of business organization that will guarantee you a complete protection from creditors going after your personal assets in a case of a bankruptcy if the business debt you were liable did not get pay off in the bankruptcy. 2. How does a firm's bankruptcy affect the owner of a sole proprietorship? Since there’s no legal distinction between the owner and the business

Business Ethics

564 words - 3 pages objections of Republican senators, appointed Cordray to the post in a recess appointment – Wikipedia What was Warren’s involvement in the government response to the collapse of the financial markets? In 2002, Warren published “Financial Collapse and Class Status: Who Goes Bankrupt?” in which she analyzed a sample of the 1.5 million families who had filed bankruptcy and found that “families in bankruptcy share many of the same educational

Related Essays

Bankruptcy Essay

876 words - 4 pages Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. Most cases are filed under the three main chapters of the bankruptcy code. They are Chapter 7, Chapter 11, and Chapter 13. Federal courts

Bankruptcy Essay

867 words - 4 pages Article Critique #3 June 7, 2013 Walsh, M. (2013). A County in Alabama Strikes a Bankruptcy Deal. New York: The New York Times Company. This article reports how a county in Alabama is dealing with bankruptcy and how it will handle the situation. Due to a sewer debt shot up during the financial turmoil of 2008, and the

Bankruptcy Research Topics Essay

724 words - 3 pages Using the Bankruptcy Process to Solve the Foreclosure Crisis The scourge of foreclosure has already affected millions of Americans, and the fear of losing one's home looms over millions more. President Obama's "Making Home Affordable" program has been a step in the right direction insofar as it encourages homeowners to work with their lenders to modify their mortgage loans. These modifications have helped borrowers by allowing them to keep

Bankruptcy Prediction Case Essay

594 words - 3 pages Case 1: Bankruptcy Prediction The Z-score bankruptcy prediction model uses balance sheet and income information to arrive at aZ-Score, which can be used to predict financial distress: Z= Working capitalTotal Assets×1.2+Retained earningsTotal Assets×1.4+EBITTotal Assets×3.3+SalesTotal Assets×0.99+MV equityTotal liabilities×0.6 EBIT is earnings before interest and taxes. MV Equity is the market value of common equity, which can be determined