Chapter 4 In re Sledge LEX 110

Some debtors who file for bankruptcy may prefer liquidation under Chapter 7 but, due to  the means test, may be required to file under _________ of the Bankruptcy Code, which provides for "Adjustment of Debts of an Individual with Regular Income". a. Chapter 9 b. Chapter 11 c. Chapter 12 d. Chapter 13

A creditor must file a(n) 44,362 Multiple Choice O lawsuit against the debtor before a creditor can "attach" property. involuntary bankruptcy petition attachment order garnishment petition

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11614 DISCUSSION QUESTIONSp ali togib.e 1. Tom Taxpayer meets with his CPA about a potential transaction. At the bns (0 meeting Tom Taxpayer presents the CPA with a private letter ruling that ed lliw is directly on point to his potential transaction. Can Tom Taxpayer rely vlataiba on the private letter ruling if he is later audited with respect to the return ert to bfiled for the year in which he enters the transaction? How would your dhue dianswer change if Tom Taxpayer provided a Revenue Ruling directly on point? nd blaleuw

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A couple applied for a loan to finance the purchase of a new home. What federal act was created to ensure that they have knowledge of all closing costs? a. fair credit reporting act b. equal credit opportunity act c. uniform settlement act d. real estate settlement procedures act

Problem 5-57 (LO. 4) Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will. The $25,000 debt cancellation is Vic's gross income when the uncle dies. b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property. Vic has a $ as a result of the foreclosure. c. The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000. The $12,000 reduction in the debt is Vic's gross income and Vic must his basis in the property.

Problem 5-56 (LO. 4) Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: a.  Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will. The $25,000 debt cancellation is   Vic's gross income when the uncle dies. b.  Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property. Vic has a $fill in the blank 564552fca057f99_1   as a result of the foreclosure. c.  The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000. The $12,000 reduction in the debt is   Vic's gross income and Vic must   his basis in the property.

A-3

7) What are the main advantages to a debtor filing a Chapter 13 petition in Bankruptcy instead of a Chapter 7 petition?

You should have a general idea of the two main forms of personal bankruptcy: the Wage Earner Plan and Straight Bankruptcy. In the following table, indicate which items are characteristic of the Wage Earner Plan and which apply to Straight Bankruptcy. Debtor may keep some assets of minimum value as defined by law New debt payment plan to better match debtor's steady income Defined in Chapter 13 of the U.S. Bankruptcy Code Most common personal bankruptcy procedure Forgives most debts Least common personal bankruptcy procedure Wage Earner Plan OOOO Straight Bankruptcy O

There are 2 forms of personal bankruptcy. Describe what happens in each.