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Lecture Notes: Bankruptcy Liquidation |
The Petition and Standard Forms: What is required to start the bankruptcy case in court.
The Supporting Schedules: How is the debtor's financial information collected in a uniform fashion.
The Estate in Bankruptcy: What property is included and what property is excluded from liquidation.
-A legal description of each piece of real estate will be required. (Look at the deeds!) List not only real estate owned on whole or with another, but also list interests in real estate. So, if the debtor has a mortgage on somebody else's property to secure that person's obligation to the debtor, list it.
-Value of the Property: Ask the debtor. This doesn't have to be a perfect number, nor is it necessary to get an appraisal.
-Ownership may be concurrent:. (Look at the Deed) Joint Tenancy with Survivorship (not in Oregon). Tenancy by the Entireties. Tenancy in common. Ownership may be less than "full": Life Estate. Option to purchase (recorded) -Community Property: These states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
Schedule B: Personal Property: Description, location, who owns. (joint?)
-See classifications on the schedule-Include Insurance Policies: (distinguish whole life.which have cash value, and term policies. Owner, beneficiary.
-Be sure to list annuities, which will typically have a present cash value.
Schedule
C: Exemptions: No election between state and federal exemptions in Oregon.
Mark the "long" box for "nonbankruptcy, state or local".
Use Oregon exemptions only.
Schedule
D. Creditors holding secured claims. Alphabetical. A contingent claim
depends on whether or not some future event happens. A claim is liquidated
when both parties can determine the amount of the claim. A claim is disputed
when the debtor thinks it is not owed.
Schedule
E: Unsecured Priority Claims. Alphabetical
Schedule
F: Unsecured, non-priority claims.
Schedule
G: Executory Contracts and unexpired leases NO NOTICE.
Schedule
H: Co Debtors Community Property, non-filing spouse. Co-signors.
Schedule
I: Current Income
Schedule J: current expenditures Current expenditures: partnership or corporation: NO OFFICIAL FORM!!!!!
Declaration
concerning schedules:
Statement
of Financial Affairs: Official Form 7. combine information for both spouses
if filing jointly. All debtors must complete questions #1-15. In addition,
debtors engaged in business also must do the balance of the questions . No
question required to be answered will get a blank. Write "NONE"
Statement of Intention: Concerning reaffirmations, etc.
THERE IS A CONTINUING DUTY TO CORRECT MISTAKES, SUPPLEMENT, AND AMEND THE FORMS, ONCE FILED.