unit 7 ass law 206

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Post University *

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206.30

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Law

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Jan 9, 2024

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3

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1. The automatic stay provisions regarding bankruptcy refer to protections afforded to debtors from creditors when a bankruptcy petition has been filed. "It stops all collection efforts, all harassment, and all foreclosure actions." (US Senate, 2000). In particular, debtors are protected against the "1)beginning or continuing judicial proceedings against the debtor; (2) actions to obtain possession of the debtor's property; (3) actions to create, perfect, or enforce a lien against the debtor's property; and (4) setoff of indebtedness owed to the debtor before commencement of the bankruptcy proceeding." (Prenkert, J.D. 2022) 2. A discharge in bankruptcy is a permanent order that releases a debtor from personal liability for certain types of debts. When a discharge in bankruptcy occurs, a debtor is no longer obligated to pay the debts discharged in the proceedings, and creditors can no longer take any action to collect them. To successfully achieve a discharge in bankruptcy, a debtor must not have been guilty of dishonest acts, like fraudulently transferring ownership of assets, and have fulfilled his obligations as a bankrupt is entitled to a discharge in bankruptcy, which translates to a fresh start for the debtor. Corporations and partnerships are not eligible, and a bankrupt person may file a written waiver of the right to a discharge. However, only one discharge may be granted every eight years. 3. Creditors who allegedly have an interest in a bankrupt debtor's estate have 90 days to file a proof of claim if they hope to participate in bankruptcy proceedings. Yet, filing and evidence of claim does not guarantee a creditor the right to participate in distributing the bankruptcy estate's assets. The claim must also be allowed. Additionally, per the bankruptcy code, distinct types of claims take precedence over others and are given priority. Some examples are child support and
Unit 7 Assignment | Bankruptcy alimony claims, court costs associated with petitioning for bankruptcy, and taxes owed to the government. 4. Exempt resources are afforded the bankrupt as they are not required to relinquish everything they possess. Under the Bankruptcy Code, the bankrupt has the right to prohibit certain property items. The indebted person may elect to keep certain things or property either exempted by state law or absolved beneath federal law unless state law particularly precludes the use of the federal exceptions. Moreover, applicable exemptions relate to the direction of the place where the indebted person was domiciled for 730 days before the petition filing. Other rules apply if the indebted person did not keep residency in one state for the previous 730 days. Victims' compensation, Social Security, and disability benefits are examples of assets eligible for exemption.
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