What is liquidation? How does the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 affect the process of liquidation?
What will be an ideal response?
In liquidation, the debtor is permitted to keep a substantial portion of his or her assets (exempt assets); the debtor's nonexempt property is sold for cash, and the cash is distributed to the creditors; and any of the debtor's unpaid debts are discharged. The debtor's future income, even if he or she becomes rich, cannot be reached to pay the discharged debt. The 2005 act substantially restricts the ability of many debtors to obtain a Chapter 7 liquidation bankruptcy. The 2005 act added the median income test and the dollar-based means test that a debtor must pass before being permitted to obtain a discharge of debts under Chapter 7. Thus, the 2005 act reduces the number of debtors who can escape their prepetition debts entirely.
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Which of the following is true regarding contract validity?
A) A unilateral contract is unenforceable. B) A voidable contract is one that has no legal effect because one of the essential elements is missing. C) A voidable contract is one in which a party may avoid his/her obligation under that contract. D) An executory contract is also unenforceable. E) A void contract is one where a party has the option to avoid his/her contractual liability.
If the federal government runs a surplus,
A. expenditures exceed taxes. B. receipts exceed disbursements. C. debt must be issued. D. the Federal Reserve buys bonds.