Business Law with UCC Applications,13e Bankruptcy and Debt Adjustment Chapter 21 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

21-2 Learning Objectives 1.Summarize the history of bankruptcy law in the United States. 2.Discuss restoring credit following bankruptcy. 3.State the criteria necessary to be eligible to file voluntarily for Chapter 7 bankruptcy. 4.Explain the “means test” that is required for filing Chapter 7 bankruptcy. 5.State the criteria necessary for creditors to force debtors into involuntary bankruptcy.

21-3 Learning Objectives (cont.) 6.Distinguish between an order for relief and automatic stay in the bankruptcy process. 7.List the federal exemptions debtors can exclude from the bankruptcy process. 8.Recognize those debts that have priority payment status under the Bankruptcy Code. 9.Explain Chapter 11 bankruptcy, emphasizing the reorganization process. 10.Discuss the requirements for Chapters 12 and 13 bankruptcy.

21-4 Bankruptcy and Debt Adjustment Bankruptcy’s History –Constitutional Authority –Restoring Credit Following Bankruptcy

21-5 Bankruptcy and Debt Adjustment Liquidation—Chapter 7, Bankruptcy Code –Commencing the Action –Order for Relief –Automatic Stay –Federal Exemptions –State Exemptions –Trustee’s Duties –Exceptions to Discharge

21-6 Bankruptcy and Debt Adjustment Commencing the Action –Voluntary Proceedings –The Means Test –Involuntary Proceedings

21-7 Bankruptcy and Debt Adjustment Federal Exemptions –Federal Homestead and Household Exemptions –Necessities –Benefits and Support Payments

21-8 Bankruptcy and Debt Adjustment Trustee’s Duties –Property Distribution

21-9 Bankruptcy and Debt Adjustment Exceptions to Discharge –Debts Created by Misconduct –Debts Enforced by the Government –Debts Created by Excessive Spending

21-10 Bankruptcy and Debt Adjustment Reorganization—Chapter 11, Bankruptcy Code –Special Features of Chapter 11 –The Reorganization Plan

21-11 Bankruptcy and Debt Adjustment The Reorganization Plan –Creditors’ Committee –Plan Qualifications –Plan Approval –Plan Confirmation

21-12 Bankruptcy and Debt Adjustment Family Farmer or Fishing Business Debt Adjustment—Chapter 12, Bankruptcy Code –Chapter 12 Procedures –The Chapter 12 Plan

21-13 Bankruptcy and Debt Adjustment The Chapter 12 Plan –Contents of the Plan –Confirmation Hearing

21-14 Bankruptcy and Debt Adjustment Individual Debt Adjustment— Chapter 13, Bankruptcy Code –The Chapter 13 Plan –Plan Confirmation

21-15 Bankruptcy and Debt Adjustment Plan Confirmation –Payments –Discharge