Bankruptcy

1213 Words5 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 Problems 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 7 bankruptcy is ‘liquidation’. However, Harv and…show more content…
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,

More about Bankruptcy

Open Document