Table Of Contents:
Preface xxv

Chapter One Introduction to Debtor/Creditor Law and the Case Study Approach 1(12)

A The Scope of Debtor/Creditor Law 1(1)

B Introduction to the Case Studies 2(4)

C Sources of Law Governing Debtor/Creditor Relations 6(1)

D The Relation of Debtor/Creditor Law to Other Areas of the Law 7(2)

E The Role of the Assisting Legal Professional in Debtor/Creditor Practice and the Skills Needed 9(1)

Conclusion 10(1)

Chapter Summary 10(1)

Review Questions 10(1)

Words and Phrases to Remember 11(2)

Part A The Creation of Debt 13(112)

Chapter Two How Debt Is Created 15(14)

A By Contract 15(3)

1 Contracts for the Loan of Money 15(1)

2 Contracts for the Extension of Credit 15(2)

3 Contracts for the Sale or Lease of Real or Personal Property 17(1)

4 Contracts for Services 18(1)

B By Assignment of Contract Rights 18(3)

C By Law 21(2)

D By Court Judgment 23(2)

Conclusion 25(1)

Chapter Summary 26(1)

Review Questions 26(1)

Words and Phrases to Remember 27(2)

Chapter Three Loans, Credit Arrangements, and Credit Reporting Practices 29(30)

A The Traditional Loan 29(12)

1 Loan Application 30(1)

2 Credit and Financial Information Check 30(4)

3 Property Inspection and Appraisal 34(1)

4 Loan Approval 34(1)

5 Loan Closing 35(6)

B The Line of Credit Loan 41(2)

C The Consumer Payday Loan and Car Title Loans---Predatory Lending 43(2)

D Installment Sales and Rent-to-Own Transactions 45(1)

E Credit Card Debt 46(4)

F The Rise of the Debt Settlement Industry and Credit Counseling Agencies 50(2)

G Credit Reports and Credit Reporting Agencies 52(4)

1 For the Individual Consumer 52(4)

2 For a Business Entity 56(1)

Conclusion 56(1)

Chapter Summary 56(1)

Review Questions 57(1)

Words and Phrases to Remember 57(2)

Chapter Four Sureties, Guarantors, and Mortgages in Real Property 59(24)

A Introduction to Secured Transactions and Terminology 59(1)

B The Co-Signer or Surety 59(1)

C The Guarantor 60(3)

D The Mortgage in Real Property 63(12)

1 Creation of a Mortgage 64(3)

2 Assignment of a Mortgage 67(1)

3 Assumption of a Mortgage 67(2)

4 Priority Among Mortgages 69(1)

5 Release of a Mortgage 70(1)

6 Purchase Subject to a Mortgage 70(1)

7 Foreclosure on a Mortgage 71(1)

a Power of Sale Foreclosure 71(2)

b Judicial Foreclosure 73(1)

8 Alternatives to Foreclosure 74(1)

a Temporary Forbearance 74(1)

b Mortgage Modification 74(1)

c State Emergency Mortgage Assistance Programs 74(1)

d HUD (Department of Housing and Urban Development) Partial Claim Fund 74(1)

e Short Sale 74(1)

f Deed in Lieu of Foreclosure 74(1)

g Filing for Bankruptcy Protection 74(1)

E The Mortgage Foreclosure Crisis of 2007-? 75(4)

Conclusion 79(1)

Chapter Summary 79(1)

Review Questions 80(1)

Words and Phrases to Remember 80(3)

Chapter Five Security Interests in Personal Property 83(20)

A Introduction to UCC Article 9 83(1)

B Creating a Security Interest in Personal Property 84(2)

C The Scope of a Security Interest in Personal Property: The Floating Lien 86(2)

1 Proceeds 86(1)

2 After-acquired Property 87(1)

3 Future Advances 87(1)

D Perfecting a Security Interest in Personal Property: Priority Issues 88(5)

1 Perfection by Filing a Financing Statement 89(2)

2 Perfection by Creditor Possession 91(1)

3 Automatic Perfection by Attachment Only 91(1)

4 Perfecting a Security Interest in Titled Vehicles 92(1)

E The Right of a Debtor to Dispose of Secured Property 93(1)

F Rights of the Secured Party on Default 94(5)

1 Repossession of the Collateral 94(2)

2 Disposition of the Repossessed Collateral 96(2)

3 Notice Requirements 98(1)

4 Right to Redeem 98(1)

5 Suit to Obtain Deficiency Judgment 98(1)

6 Suit for Judgment in Lieu of Repossession 99(1)

Conclusion 99(1)

Chapter Summary 99(1)

Review Questions 100(1)

Words and Phrases to Remember 100(3)

Chapter Six Nonconsensual Liens (Statutory and Equitable Liens) 103(22)

A Mechanic's and Materialman's Liens on Real Property 103(6)

1 Creating the Mechanic's Lien 104(3)

2 Enforcing the Mechanic's Lien 107(1)

3 Priority of the Mechanic's Lien 107(2)

B The Artisan's Lien (and Other Possessory Liens) 109(2)

1 Enforcing the Artisan's Lien 109(1)

2 Priority of the Artisan's Lien 110(1)

C The Attorney's Charging Lien 111(1)

D Healthcare and Hospital Liens 112(1)

E Tax Liens 113(4)

1 The Federal Tax Lien 113(1)

a Creating the Federal Tax Lien 113(2)

b Perfecting the Federal Tax Lien 115(1)

c Levying on the Federal Tax Lien 116(1)

2 State and Local Tax Liens 116(1)

F Lien Lis Pendens 117(2)

G The Lien for Unpaid Child Support 119(1)

H Equitable Liens: The Vendor's Lien 119(2)

Conclusion 121(1)

Chapter Summary 121(1)

Review Questions 122(1)

Words and Phrases to Remember 122(3)

Part B The Collection of Debt 125(90)

Chapter Seven Prelitigation Efforts to Collect Delinquent Debt 127(16)

A The Fair Debt Collection Practices Act 127(8)

1 Whom the FDCPA Regulates 127(1)

2 Activities Regulated by the FDCPA 128(1)

a Locating the Consumer 129(1)

b Communications with the Consumer 129(1)

c Harassment or Abuse of the Consumer 130(1)

d False or Misleading Representations 131(1)

e Unfair or Unconscionable Means 131(1)

3 The "Initial Communication" and Section 809 Demand Letter 131(3)

4 Penalties for Violating the FDCPA 134(1)

B Tort, Criminal, and Ethical Considerations in Collecting a Debt 135(4)

1 Intentional Infliction of Emotional Distress 135(1)

2 Defamation 136(1)

3 Invasion of Privacy 136(1)

4 Harassment 137(1)

5 Assault/Battery 137(1)

6 Conversion/Theft 138(1)

7 Extortion/Blackmail 138(1)

8 Ethical Considerations 139(1)

Conclusion 139(1)

Chapter Summary 139(1)

Review Questions 140(1)

Words and Phrases to Remember 141(2)

Chapter Eight Reducing a Debt or Claim to Final Judgment---Part 1 143(20)

A The Decision to File a Lawsuit to Collect a Debt or Enforce a Claim 143(5)

1 The Creditor Holding a Consensual Security Interest or Mortgage 143(1)

2 The Creditor Whose Debt Is Guaranteed or Subject to a Surety Agreement 144(1)

3 The Creditor Holding a Nonconsensual Statutory or Equitable Lien 144(1)

4 The Unsecured Creditor or Claimant 145(1)

5 The Claimant Asserting an Unliquidated Claim 145(1)

6 The Judgment-Proof Debtor 146(2)

7 Availability of Alternative Dispute Resolution (ADR) 148(1)

B Filing the Lawsuit: Default and Contested Cases 148(12)

1 The Complaint 148(2)

2 The Uncontested Case: Default Judgment 150(5)

3 The Contested Case: Defenses, the Answer, and the Counterclaims 155(2)

4 The Contested Case: Pretrial Discovery 157(3)

Conclusion 160(1)

Chapter Summary 160(1)

Review Questions 161(1)

Words and Phrases to Remember 161(2)

Chapter Nine Reducing a Debt or Claim to Final Judgment---Part 2 163(18)

A Prejudgment Remedies 163(6)

1 Prejudgment Attachment 163(3)

2 Receivership 166(1)

3 Injunction 166(1)

4 Prejudgment Garnishment 167(1)

5 Replevin 168(1)

6 Lien Lis Pendens 168(1)

7 Ne Exeat (Arrest) 168(1)

B Recovering Fraudulent Transfers: The Uniform Fraudulent Transfer Act 169(3)

1 Transfers Made with Intent to Defraud 169(1)

2 Transfers Made with Constructive Fraud 170(1)

3 Remedies for Fraudulent Transfer 171(1)

C Entitlement to Prejudgment Interest 172(1)

D The Final Judgment 173(3)

E Postjudgment Interest 176(1)

Conclusion 177(1)

Chapter Summary 177(1)

Review Questions 178(1)

Words and Phrases to Remember 178(3)

Chapter Ten Executing on a Final Judgment---Part 1 181(18)

A The Postjudgment Grace Period 181(1)

B The Effect of Postjudgment Motions on the Right to Execute 182(1)

C The Effect of an Appeal on the Right to Execute: The Stay Bond 183(6)

1 Cash or Personal Property Bond 185(1)

2 Real Property Bond 186(1)

3 Surety Bond 186(3)

D Property Exempt from Execution 189(4)

1 Controlling Law on Exemption Issues 189(1)

2 The Homestead Exemption 190(1)

3 Personal Property/Income Source Exemptions 191(1)

4 Declaring Exemptions in Property 192(1)

5 Applicability of Property Exemptions to Government Claims 192(1)

E The Effect of Concurrent Ownership of Property on Creditor Execution Efforts 193(2)

1 Tenancy by the Entireties 193(1)

2 Community Property 193(1)

3 Tenancy in Common 194(1)

4 Joint Tenancy 194(1)

F Trust Arrangements that May Defeat Creditor Execution Efforts 195(1)

1 Spendthrift Trust 195(1)

2 Asset Protection Trust 195(1)

Conclusion 196(1)

Chapter Summary 196(1)

Review Questions 197(1)

Words and Phrases to Remember 197(2)

Chapter Eleven Executing on a Final Judgment---Part 2 199(16)

A Discovery in Aid of Execution: Postjudgment Discovery 199(1)

B Methods of Executing on the Final Judgment 199(11)

1 The Judgment Lien 202(2)

2 The Writ of Execution 204(4)

3 The Writ of Garnishment 208(2)

C Enforcing Foreign Judgments (the UEFJA) 210(2)

D Continuing Execution on a Judgment 212(1)

Conclusion 212(1)

Chapter Summary 212(1)

Review Questions 213(1)

Words and Phrases to Remember 214(1)

Part C The Discharge or Reorganization of Debt in Bankruptcy 215(244)

Chapter Twelve Introduction to Bankruptcy 217(26)

A A Brief History of Debt Relief and Bankruptcy Laws 217(2)

B An Overview of the Bankruptcy Code and the Types of Bankruptcy Proceedings 219(2)

C Distinguishing Between Consumer and Business Bankruptcy Cases 221(1)

D Who Files for Consumer Bankruptcy Relief and Why 222(2)

E Growth of Bankruptcy Filings in the Modern Era 224(1)

F The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 224(1)

G Important Sources of Law for Bankruptcy Practice 225(2)

1 The Federal Rules of Bankruptcy Procedure 225(1)

2 The Official Bankruptcy Forms 226(1)

3 The Federal Rules of Civil Procedure 226(1)

4 The Federal Rules of Evidence 226(1)

5 Local Court Rules 226(1)

6 Miscellaneous Provisions of the U.S. Code 227(1)

H The U.S. Bankruptcy Courts 227(5)

1 Number and Location of Bankruptcy Courts 227(1)

2 Referral Jurisdiction of Bankruptcy Courts: Core and Noncore Proceedings 228(3)

3 Personal Jurisdiction of the Bankruptcy Courts 231(1)

4 Appeal of a Bankruptcy Court Final Order 232(1)

I Other Important Players in a Bankruptcy Case 232(2)

J The Role of the Assisting Legal Professional in a Bankruptcy Case 234(1)

K Electronic Filing in Bankruptcy Courts 235(1)

L Bankruptcy Software 236(1)

M Web-Based Resources for Learning About Bankruptcy 236(1)

N Alternatives to Filing for Bankruptcy Relief 237(2)

1 The Assignment for Benefit of Creditors 237(1)

2 The Composition and Extension Agreements 238(1)

3 The Receivership 238(1)

4 The Bulk Sale Transfer Act 239(1)

Conclusion 239(1)

Chapter Summary 239(1)

Review Questions 240(1)

Words and Phrases to Remember 241(2)

Chapter Thirteen The Chapter 7 Case: The Means Test and Other Qualifications to File 243(22)

A The Basic §109 Qualifications 243(1)

B The §727(a) Prior Discharge Limitations 244(1)

C The §707(b) Means Test and Presumption of Abuse Limitation for Individual Consumer Debtors 244(18)

1 Introduction to the Means Test and the Presumption of Abuse 244(1)

2 Step 1 of the Means Test: Comparing the Debtor's Annualized Monthly Income to the State Median Family Income Using Parts II & III of OBF 22A 245(3)

3 Step 2 of the Means Test: Determining the Debtor's Disposable Monthly Income to Determine the Feasibility of Funding a Chapter 13 Plan 248(6)

a Part IV of OBF 22A: The Marital Adjustment 254(1)

b Part V of OBF 22A: Deductions from the Debtor's Annualized Monthly Income 254(5)

c Part VI of OBF 22A: Determination of the Presumption 259(1)

4 The Right to Challenge the Presumption of Abuse by Showing Special Circumstances 260(1)

5 The Right to Challenge the Debtor's Conclusion that the Presumption of Abuse Does Not Arise in His Case 261(1)

D The Prepetition Credit Counseling Requirement for All Individual Debtors 262(1)

Conclusion 262(1)

Chapter Summary 263(1)

Review Questions 263(1)

Words and Phrases to Remember 263(2)

Chapter Fourteen The Chapter 7 Case: The Petition, Supporting Schedules, and Statements 265(22)

A The Petition Commencing the Case 265(5)

1 The Voluntary Petition 265(1)

2 The Joint Petition, Consolidation and Joint Administration 266(1)

3 Proper Venue for Filing the Petition 266(1)

4 Signatures on the Petition 266(1)

a The Debtor's Signature 266(1)

b The Signature and Certification of the Attorney for the Debtor 267(1)

c The Signature of a Debt Relief Agency (DRA) Providing Assistance in a Consumer Debtor Case: The Debtor's Attorney as a DRA 267(1)

d The Signature of the Nonattorney Petition Preparer 268(1)

5 The Filing Fee 268(1)

6 The Involuntary Petition 269(1)

B Schedules, Statements, and Other Documents That Accompany the Petition 270(13)

1 The List of Creditors 270(1)

2 Schedule A, Real Property (OBF 6A) 270(1)

3 Schedule B, Personal Property (OBF 6B) 271(1)

4 Schedule C, Exempt Property (OBF 6C) 271(1)

a How Exemptions Work 271(2)

b The Federal Exemptions and Right of States to Opt Out 273(1)

c Limitations on the Homestead Exemption: The 1,215 Day Rule 274(1)

d Valuing Property Claimed as Exempt 275(1)

e The Right to Object to a Claimed Exemption 276(1)

f The Right to Avoid a Judicial Lien in Property Claimed as Exempt 277(1)

5 Schedule D, Creditors Holding Secured Claims (OBF 6D) 278(1)

6 Schedule E, Creditors Holding Unsecured Priority Claims (OBF 6E) 278(1)

7 Schedule F, Creditors Holding Unsecured Nonpriority Claims (OBF 6F) 278(1)

8 Schedule G, Executory Contracts and Unexpired Leases (OBF 6G) 279(1)

9 Schedule H, Codebtors (OBF 6H) 279(1)

10 Schedule I, Current Income of Individual Debtors (OBF 6I) 279(1)

11 Schedule J, Current Expenditures of Individual Debtors (OBF 6J) 280(1)

12 Summary of Schedules (OBF 6-Summary) 280(1)

13 Declaration Concerning Debtor's Schedules (OBF 6-Declaration) 280(1)

14 Statement of Financial Affairs (OBF 7) 280(1)

15 Statement of Intent by Individual Debtor (OBF B8) 280(1)

16 Statement of Current Monthly Income and Means Test Calculation (OBF 22A) 281(1)

17 Statement of Social Security Number (OBF 21) 281(1)

18 Statement Disclosing Reasonably Anticipated Increase in Income or Expenditures over the 12-month Period Following the Date of Filing the Petition 281(1)

19 Statement Disclosing Compensation Paid or to be Paid to the Attorney for the Debtor (OBF 203) 281(1)

20 Statement Disclosing Compensation Paid or to be Paid to Nonattorney Bankruptcy Petition Preparer (OBF 280) 282(1)

21 Copies of All Payment Advices or Other Evidence of Payment Received from Any Employer Within 60 Days Before the Filing of the Petition 282(1)

22 Record of Any Ownership Interest in an Education IRA or State Tuition Program 282(1)

23 Copy of the Debtor's Last Federal Income Tax Return 282(1)

24 Certification and Signature of Nonattorney Bankruptcy Petition Preparer (OBF 19) 282(1)

25 Notice to Debtor by Nonattorney Bankruptcy Petition Preparer (OBF 201B) 283(1)

26 Other Required Filings Mandated by Local Court Rules 283(1)

27 Required Filings for Entity Debtors 283(1)

C The Time Frame for Filing the Supporting Schedules, Etc., and FRBP 9006 for Computing Time Deadlines 283(1)

D The Importance of Reporting Accurate and Complete Information 284(1)

Conclusion 285(1)

Chapter Summary 285(1)

Review Questions 285(1)

Words and Phrases to Remember 286(1)

Chapter Fifteen The Chapter 7 Case: From the Order for Relief to the First Meeting of Creditors 287(18)

A The Order for Relief 287(1)

B The Chapter 7 Bankruptcy Trustee 287(2)

1 Duties of the Bankruptcy Trustee 288(1)

2 Compensation of the Bankruptcy Trustee 289(1)

C The No-Asset Case 289(1)

D Notice to Creditors of Commencement of Case 290(1)

E The Automatic Stay 290(6)

1 Enforcing the Automatic Stay 291(2)

2 Lifting the Automatic Stay 293(2)

3 Expiration of the Automatic Stay for Secured Personal Property of the Individual Chapter 7 Debtor 295(1)

4 Effect of Individual Debtor's Surrender of Pledged Property on the Automatic Stay 296(1)

5 The Automatic Stay and Utility Service 296(1)

F The First Meeting of Creditors 296(2)

G Procedures for Resolving Disputes in a Bankruptcy Case 298(4)

1 Motion, Objection, and Notice Practice: Contested Matters and the "After Notice and a Hearing" Procedure 298(3)

2 Adversary Proceedings 301(1)

Conclusion 302(1)

Chapter Summary 302(1)

Review Questions 302(1)

Words and Phrases to Remember 303(2)

Chapter Sixteen The Chapter 7 Case: Creditor Claims and Property of the Estate 305(22)

A Creditor Claims 305(4)

1 The Proof of Claim 305(1)

2 Objections to Claims 306(1)

3 Creditors' Claims and the Right to Setoff 307(1)

4 Interest on Claims in Chapter 7 Cases 308(1)

a Interest on Unsecured and Undersecured Claims 308(1)

b Interest, Fees, and Other Charges on Oversecured Claims 309(1)

B Property of the Estate 309(2)

C Challenging the Debtor's Claimed Exemptions to Increase Property of the Estate 311(1)

D The Trustee's Powers to Compel Turnover of Property of the Estate 312(2)

1 The Debtor's Duty to Turn Over Property to the Bankruptcy Trustee 312(1)

2 The Duty of Third Persons to Turn Over Property of the Estate 313(1)

3 The Duty of Custodians to Turn Over Property of the Estate 313(1)

E The Trustee's Avoidance Powers Regarding Property of the Estate 314(8)

1 The Power to Avoid Unperfected Security Interests in the Debtor's Property 314(1)

2 The Power to Avoid Statutory Liens in Property of the Estate 314(1)

3 The Power to Avoid a Fraudulent Transfer of Property of the Estate 315(1)

4 The Power to Avoid Preferential Transfers of Property of the Estate 316(2)

a The Right of Setoff in a Preferential Transfer 318(3)

b Transfers to Insiders 321(1)

c Exceptions to the Trustee's Right to Avoid Preferential Transfers 321(1)

5 Time Limitation on the Trustee's Right to Bring an Avoidance Action 322(1)

F Hiring Professional Persons to Assist the Trustee 322(1)

Conclusion 323(1)

Chapter Summary 323(1)

Review Questions 324(1)

Words and Phrases to Remember 324(3)

Chapter Seventeen The Chapter 7 Case: Liquidation, Distribution, Reaffirmation or Redemption, and Final Discharge 327(22)

A Liquidating Property of the Estate 327(3)

1 Abandonment of Property of the Estate 327(1)

a Abandonment of Secured Property 327(1)

b Abandonment of Other Property of the Estate 328(1)

c Procedure for Abandonment 328(1)

2 The Sale of Property Free and Clear of Liens 328(1)

3 The Sale of Other Property of the Estate 329(1)

B Distribution of the Estate and the Order of Priority 330(2)

C Nondischargeable Debts 332(5)

1 Taxes 333(1)

2 Debts Created by Fraudulent Pretenses or False Financial Statement 333(1)

3 Presumption of Fraud in "Last-Minute" Consumer Purchases of Luxury Goods or Services 333(1)

4 Debts Arising from Fraud or Defalcation in a Fiduciary Capacity 334(1)

5 Debts Arising from Embezzlement or Larceny 335(1)

6 Domestic Support Obligations 335(1)

7 Debts Arising from Willful or Malicious Injury to the Person or Property of Another 335(1)

8 Student Loans 335(1)

9 Fines, Penalties, and Forfeitures Owed to the Government 336(1)

10 Personal Injury and Wrongful Death Claims Arising from DUI 336(1)

11 Unlisted Debts 336(1)

D Objections to Discharge 337(2)

1 Dealing with Property for the Purpose of Hindering, Delaying, or Defrauding a Creditor 337(1)

2 Concealing, Destroying, Falsifying, or Not Keeping Books and Records 337(1)

3 Making a False Oath or Account or Using a False Claim 338(1)

4 Lack of Satisfactory Explanation of Loss of or Inadequate Assets 338(1)

5 Failure to Obey a Lawful Court Order 338(1)

6 A Prior Discharge 338(1)

7 Failure to Complete the Postpetition Financial Management Course 339(1)

E Dismissal or Conversion of a Chapter 7 Case 339(2)

1 For Delay, Nonpayment of Fees, or Failure to File Schedules 339(1)

2 For Bad Faith or Abuse Demonstrated by the Totality of Circumstances 339(1)

3 The Debtor's Right to Convert 340(1)

F The Reaffirmation Agreement and the Right of Redemption 341(2)

1 The Reaffirmation Agreement 341(2)

2 The Right to Redeem 343(1)

G The Final Discharge, Closing the Case, and Prohibition on Discrimination 343(2)

Conclusion 345(1)

Chapter Summary 345(1)

Review Questions 346(1)

Words and Phrases to Remember 346(3)

Chapter Eighteen The Chapter 13 Case: Reorganization for an Individual with Regular Income---Filing the Case 349(10)

A Introduction to the Chapter 13 Case 349(2)

1 The Purpose of Chapter 13 349(1)

2 Eligibility to File a Chapter 13 Case 350(1)

B Filing a Chapter 13 Case 351(3)

1 The Petition, Schedules, and Other Documents 351(1)

2 Attorney's Fees in a Chapter 13 Case 352(1)

3 The Standing Chapter 13 Trustee 353(1)

C The Order for Relief, Notice to Creditors, and Automatic Stay Under Chapter 13 354(1)

D Property of the Estate in a Chapter 13 355(1)

E The First Meeting of Creditors and Filing Proofs of Claim 356(1)

Conclusion 357(1)

Chapter Summary 357(1)

Review Questions 358(1)

Words and Phrases to Remember 358(1)

Chapter Nineteen The Chapter 13 Case: Determining the Applicable Commitment Period and Debtor's Disposable Income 359(16)

A Determining the Applicable Commitment Period of a Chapter 13 Plan 359(8)

1 The Applicable Commitment Period for the Below Median Debtor 359(5)

2 The Applicable Commitment Period for the Above Median Debtor 364(3)

B Calculating the Chapter 13 Debtor's Projected Disposable Income 367(6)

1 Calculating Disposable Income for the Below Median Debtor 367(3)

2 Calculating Disposable Income for the Above Median Debtor 370(3)

Conclusion 373(1)

Chapter Summary 373(1)

Review Questions 373(1)

Words and Phrases to Remember 374(1)

Chapter Twenty The Chapter 13 Case: Treatment of Secured and Unsecured Claims in the Plan 375(22)

A Treatment of Priority Claims in the Chapter 13 Plan 375(1)

B Treatment of Secured Claims in the Chapter 13 Plan 375(10)

1 Payment of the Secured Claim in Full and Retention of the Lien: The Pay Through Proposal 376(1)

2 Avoiding a Lien That Impairs an Exemption in Property of the Debtor 376(1)

3 Curing of Arrearages Created by Default 376(2)

4 Reducing an Undersecured Claim to Present Value: Cramdown 378(1)

a How Cramdown Works in General 378(1)

b Exclusion of the Debtor's Principal Residence from the Cramdown Option---and Some Exceptions 379(1)

c Cramdown of Purchase Money Claim Secured by a Motor Vehicle: The 910 Day Rule of the §1325(a) "Hanging Paragraph" 380(1)

d Cramdown of Purchase Money Claim Secured by Property Other Than a Motor Vehicle: The Hanging Paragraph Strikes Again 380(1)

e How the Cramdown Value of Collateral Is Determined 381(1)

f Determining the "Present Value" of the Collateral for Purposes of Plan Payments 382(1)

5 Modifying a Secured Claim by Adjusting Payments 383(1)

6 Surrender of Secured Property 384(1)

C Treatment of Nonpriority Unsecured Claims Under the Chapter 13 Plan 385(5)

1 Curing Defaults and Modifying the Obligation of Unsecured Debt 385(1)

2 The Nonpayment of Unsecured Debt: The Less Than 100 Percent Plan 385(1)

3 Classes of Unsecured Creditors in a Chapter 13 Plan 386(4)

D Payments Outside the Chapter 13 Plan and the Wage Order 390(2)

E Analysis of the Matthews' Chapter 13 Plan 392(1)

Conclusion 393(1)

Chapter Summary 393(1)

Review Questions 394(1)

Words and Phrases to Remember 395(2)

Chapter Twenty-One The Chapter 13 Case: Plan Confirmation, Modification, Discharge, and Comparisons with Chapter 12 397(12)

A Timing of the Chapter 13 Plan and Initial Payments 397(1)

B Confirmation of the Chapter 13 Plan 397(2)

C Living with the Confirmed Chapter 13 Plan 399(1)

D Modifying a Confirmed Chapter 13 Plan 400(1)

E The Chapter 13 Discharge 401(3)

1 Timing of the Discharge 401(1)

2 Requirements for Receiving a Chapter 13 Discharge 402(1)

3 Scope of the Chapter 13 Discharge: Nondischargeable Debts 402(2)

F Conversion or Dismissal of a Chapter 13 Case 404(2)

1 Prepetition Activities of the Debtor That Gave Rise to Her Debts 405(1)

2 Motives of the Debtor in Filing the Chapter 13 Case 405(1)

3 Accuracy of the Disclosures in the Debtor's Petition and Schedules 406(1)

4 Terms of the Proposed Chapter 13 Plan 406(1)

5 Debtor's Compliance with the Terms of a Confirmed Plan 406(1)

G The Chapter 12 Reorganization for a Family Farmer or Family Fisherman with Regular Income 406(1)

1 History and Purpose of Chapter 12 406(1)

2 Similarities to Chapter 13 and Chapter 11 Reorganizations 406(1)

Conclusion 407(1)

Chapter Summary 407(1)

Review Questions 408(1)

Words and Phrases to Remember 408(1)

Chapter Twenty-Two The Chapter 11 Business Reorganization: Filing the Case 409(14)

A Introduction to Chapter 11 409(3)

1 The Purpose of Chapter 11 409(1)

2 Eligibility to File a Chapter 11 Case 410(1)

a The Small Business Debtor 410(1)

b The Single Asset Real Estate Debtor 410(1)

3 Overview of a Chapter 11 Case 411(1)

4 The "Prepackaged" Chapter 11 412(1)

B Filing a Chapter 11 Case and the "Debtor in Possession" Concept 412(3)

1 The Petition, Schedules, and Other Documents 412(1)

2 The Debtor in Possession 413(2)

3 Appointing a Bankruptcy Trustee 415(1)

C The Creditors' Committee 415(1)

D Preliminary Operational Motions in a Chapter 11 Case: First Day Orders 416(5)

1 The Motion for Authorization to Use Cash Collateral 417(2)

2 The Motion for Authorization to Pay Critical Prepetition Debts Under the "Necessity Doctrine" 419(1)

3 The Motion to Hire Professionals 420(1)

4 Preliminary Operational Motions in a Prepackaged Chapter 11 420(1)

Conclusion 421(1)

Chapter Summary 421(1)

Review Questions 421(1)

Words and Phrases to Remember 422(1)

Chapter Twenty-Three The Chapter 11 Case: Operating the Business Prior to Plan Approval 423(18)

A The First Meeting of Creditors in a Chapter 11 423(1)

B Creditor Claims in a Chapter 11 423(1)

C Conversion or Dismissal of a Chapter 11 Case 423(1)

D Operational Motions Critical to Formulating a Plan of Reorganization 424(14)

1 The Motion for Authorization to Use, Sell, or Lease Property in Other Than the Ordinary Course of Business 425(1)

a The Role of Adequate Protection in Connection with the Motion for Permission to Use, Sell, or Lease Encumbered Property 426(2)

b The Role of the Automatic Stay in Connection with the Motion for Permission to Use, Sell, or Lease Encumbered Property 428(1)

2 The Motion to Incur Postpetition Debt 429(1)

a Postpetition Unsecured Debt Incurred in the Ordinary Course of Business 430(1)

b Postpetition Unsecured Debt Incurred in Other Than the Ordinary Course of Business 430(1)

c Postpetition Secured Debt 431(1)

d Appealing Bankruptcy Court Decisions Regarding Postpetition Debt 432(1)

3 The Motion to Assume, Reject, or Assign Executory Contracts 432(2)

a The Procedure for Assuming or Rejecting a Contract and the Standards for Approval 434(1)

b The Timing of the Motion to Assume or Reject an Executory Contract 434(1)

c Assuming a Contract on Which the Debtor Is in Default 435(1)

d The Assignment/Delegation of Contract Rights 435(1)

e The Effect of Nonassumption or Nonassignment Clauses in Contracts 436(1)

f Contracts That Cannot Be Rejected 436(1)

g The Limited Right to Reject a Collective Bargaining Agreement 436(1)

h The Consequences of the Rejection of a Contract by the DIP 437(1)

4 The Motion to Abandon Property of the Estate 437(1)

5 The Motion for Interim Compensation 438(1)

6 Comparison to Operational Motions in a Chapter 7 Business Liquidation 438(1)

E Gathering the Property of the Estate 438(1)

Conclusion 438(1)

Chapter Summary 439(1)

Review Questions 439(1)

Words and Phrases to Remember 440(1)

Chapter Twenty-Four The Chapter 11 Case: The Plan of Reorganization 441(18)

A The Exclusivity Period for Filing a Plan of Reorganization 441(1)

B Content of the Plan of Reorganization 442(5)

1 Classes of Claims and Interests 442(2)

2 Impaired Classes and Their Treatment 444(1)

3 The Right to Modify a Secured Claim in a Chapter 11 445(1)

4 Means of Implementing the Plan 446(1)

C The Disclosure Statement 447(1)

D Solicitation for Support or Opposition and Voting on the Plan 448(2)

E Confirmation of the Plan 450(6)

1 Section 1129(a) Confirmation 450(1)

a Approval of the Plan by All Classes, Including Any Impaired Classes [§1129(a)(8)] 450(1)

b Approval by at Least One Impaired Class Discounting Affirmative Votes of Insiders [§1129(a)(10)] 451(1)

c The Best Interests of Dissenting Creditors Test [§1129(a)(7)] 451(1)

d The Feasibility Test [§1129(a)(11)] 451(1)

e The Lawfulness and Good Faith Tests [§§1129(a)(1)(2) and (3)] 451(1)

f Treatment of §507 Priority Claims [§1129(a)(9)] 451(1)

2 Section 1129(b) Confirmation 452(1)

a Approval by One Impaired Class 452(1)

b The No Unfair Discrimination Requirement of §1129(b)(1) 453(1)

c The Fair and Equitable Requirement of §1129(b)(1) and (2) as to Secured Claims 453(1)

d The Fair and Equitable Requirement of §1129(b)(1) and (2) as to Unsecured Claims 454(1)

3 The Confirmation Hearing 455(1)

4 The Effect of Plan Confirmation 455(1)

5 Postconfirmation Modification of a Chapter 11 Plan 455(1)

6 Revocation of an Order of Confirmation 456(1)

F Postconfirmation Dismissal or Conversion of a Chapter 11 Case 456(1)

G Consummation of the Plan of Reorganization 456(1)

Conclusion 456(1)

Chapter Summary 457(1)

Review Questions 457(1)

Words and Phrases to Remember 458(1)
Appendix A In Re Marta Rinaldi Carlson Chapter 7 Bankruptcy 459(6)
Appendix B In Re Roger H. and Susan J. Matthews Chapter 13 Bankruptcy 465(4)
Appendix C In Re Banowsky Brothers Furniture, Inc. Chapter 11 Bankruptcy 469(6)
Glossary 475(26)
Index 501