• The court is required to appoint a committee of creditor holding unsecured claim.
• Any interested party may propose a plan after the first 120 days following the order of relief.
• Approval of the plan is generally required by creditors holding 2/3 in amount and 1/2 in number of each class of claims.
• A Reorganization plan must always be confirmed by the court.

1	Bankruptcy Petition	automatic stay except: alimony,child support
2	Order of relief
3	First creditors' meeting
4	Liquidation		=>	Denial of Discharge
5	Discharge		=>	Reaffirmation

Excemption property in Federal Bankruptcy Code

Homestead exemption(<$16,150) One motor vehicle(<$2,575) Household goods + Furniture ($475/good,amount $8,625) Books & tools of one's trade(<$1,625) Jewelry(<$1,075)

Social security benefits Unemployment compensation Alimony Veteran's benefits Prescribed health aids

Interest(<$850)

• Voluntary Bankruptcy

  Debtor needs not be insolvent,just needs to state that he/she has debt.

• Joint Bankruptcy
• Involuntary Bankruptcy
  Not Against:
  • Farmer
  • Charch,School and Charitable foundation
  An voluntary case is commenced by the filing of a petition.

  creditors	debtor has	petitioners holding in the debtors property at least
  3 or more	12 or more creditor	$10,775
  1 or more	fewer than 12 creditor	$10,775

Priority for claims
1. Secured creditors are protected as to collateral.
2. Administrative Claims
3. Middleman debts

   after filling date and before the order for relief

4. Wages unpaid

   within 90 days before filing and maximum $4,300

5. Employee Benefit Claims

   earned within 180 days before filing.Maxmum is $4,300 - above amount

6. Deposit for consumer goods

   $1,950 per individual

7. Alimony and child support
8. TAX unpaid
9. general unsecured creditors

debts excepted from discharge
1. claims arised from alimory
2. claims arised from maintenance
3. claims arised from breach of contract from unsecured creditor
4. claims arised from an action in negligence

Reaffirmation
• Definition:

  The reaffirmation of a debt is a commitment to pay a debt that can be discharged in bunkruptcy.

Trustee's power
• Power to employ specialities
• Avoiding power
  • Executory contract

    can Assume or Reject(noreaction within 60days => rejection)

  • Fraudulent transfer

    can disaffirm before 1 year of filing

  • Preferential transfer
    • Transfer of property that benefits a creditor
    • Antecendent debt
    • Within 90 days before filing
    • while debtor was Insolvent
    • creditor received More than through bankruptcy
    Exceptions

    A Comtemporaneous exchange Payment in the Ordinary course of business

    for example: payment for Utilities consumer debt(Credit Card) < $600 exchange in cash