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Lecture Notes: Bankruptcy Administration |
The power of the trustee: How does the trustee gather the assets of the estate in bankruptcy.
Creditors' claims: How do creditors and other parties assert their rights in the administration.
Orders: How does the court resolve contested matters and adversary proceedings.
Discharge, distribution and closing: How does the case come to an end.
Abandon property: The trustee can abandon property of the debtor. Basically,
the trustee decides that the particular property is not worth bothering about.
The test is
-is the property burdensome to the estate, meaning that it will cost more to administer than its value. OR-is the property of inconsequential value and benefit to the estate.
Assume or reject executory contracts:
Avoid transfers. (avoiding means making a transfer of property void
- so the trustee can get the property back into the estate)
-unperfected security interests: for example, where a secured creditor failed to file the UCC notice.
-avoiding claims a creditor could avoid,
-avoiding voidable preferences: (definition: a transfer of property before bankruptcy, where the debtor was insolvent at the time or where the transfer favors one creditor over the other creditors. Normal scheduled payments are not voidable. A debt pay-off could be. (A transfer within the 90 days before filing bankruptcy is to be completed while the debtor is insolvent.)
-avoiding fraudulent transfers.(a transfer of property before bankruptcy, to put the property out of reach of the creditors.
A transfer of property was made within 12 months before filing can be avoided, if the debtor had actual intent to defraud. OR
transfer of property was made for an unreasonably low value when debtor insolvent or became insolvent because of the transfer.
-avoiding unauthorized POST petition transfers: (Keep in mind that this might require going after a bona fide purchaser for value to get the property back.)