Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
2
Creditor-Debtor Relations & Bankruptcy
// Creditor Rights//
// Creditor Rights //
Liens
// Liens //
claims against property to satisfy a debt or protect a claim for the payment of a debt.
generally take priority over other claims against the same property
Mechanic's Lien
A lien on real property to ensure payment for work performed and materials furnished in the repair or improvement of real property.
Artisan's Lien
A lien on personal property to ensure payment for services performed to repair, improve, or enhance the value of personal property
Judicial Lien
A creditor can bring a legal action against the debtor to collect a past-due debt. If the action is successful, the court awards the creditor a judgment against the debtor
Attachment
a court-ordered seizure and taking into custody of property before a judgment is obtained on a past-due debt. Because attachment is a prejudgment remedy, it occurs either at the time a lawsuit is filed or immediately afterward.
Garnishment
An order that permits a creditor to collect a debt by seizing property of the debtor that is being held by a third party. Many other types of property can be garnished including wages, funds in a bank account, tax refunds, pensions, and trust funds
Suretyship & Guarantor
// Suretyship
An express promise by a third party (the surety) to a creditor to be primarily responsible for the debtor’s obligation to the creditor.
Guarantor //
the third person making the guaranty—is secondarily liable.
Mortgages
a lien on real property to cover the repayment of a loan for the purchase of the property
Fixed Rate
fixed (or unchanging) rate of interest, so the payments remain the same for the duration of the loan
Fixed Rate
Adjustable Rate
the interest rate adjusts annually or by some other period, such as biannually or monthly. The interest rate adjustment is calculated by adding a certain number of percentage points (called the margin) to an index rate (one of various government interest rates).
Adjustable Rate
Foreclosure
Foreclosure is the legal process by which the lender repossesses and auctions off the property that has secured the loan if the borrower defaults
Foreclosure
// Consumer Protection
Laws //
// Debtor's Rights //
Consumer Protection
Laws
// Debtor Rights //
Bankruptcy Laws
// Consumer Protection Laws //
In most states, certain types of real and personal property are exempt from execution or attachment
// Homestead Exemption//
// Personal Property //
// Bankruptcy
//
// Bankruptcy //
Constitution allows federal govt to establish bankruptcy laws to give debtors a fresh start and allow the equitable treatment of creditors claims
Chapter 7 - liquidation of all non-exempt assets to pay creditors
Chapter 11 - reorganization
Chapter 13- allows individuals to repay debts under new terns
Chapter 7
Available to both individuals and corporations
After filing, a trustee is appointed who gathers assets, sells them and distributes proceeds.
Not dis-chargeable:
federal taxes
claims where debtor obtained property fraudulently
claims of creditors not notified of the proceeding
funds obtained by breach of fiduciary duty, embezzlement of fraud
child support; spousal support
Chapter 11
reorganization by corporations
debtor remains in possession
a creditors’ committee of unsecured creditors is appointed; additional committees may be appointed
a plan is developed which designates classes of claims, treatment and payment of tax claims over 5 year period; purpose is to conserve and administer the debtor’s assets in the hope of an eventual return to successful operation and solvency.
plan must be approved by all classes of creditors
if court approves, discharge of prior debts granted
Chapter 13
adjust and repay debts if less than $383,175 of unsecured debt or $1,149,525 of secured debt. mus have regular Income
can be filed as chapter 13 or converted by court from chapter 7
trustee appointed; repayment plan developed; priority claims paid in full; debts in same class treated identically; 3 or 5 year plan; discharge after successful completion