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Chapter 21 - Bankruptcy and debt adjustment. After completing this chapter, students will be able to: Summarize the history of bankruptcy law in the United States, discuss restoring credit following bankruptcy, state the criteria necessary to be eligible to file voluntarily for chapter 7 bankruptcy, explain the “means test” that is required for filing Chapter 7 bankruptcy,. | Business Law with UCC Applications,13e Bankruptcy and Debt Adjustment Chapter 21 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Summarize the history of bankruptcy law in the United States. Discuss restoring credit following bankruptcy. State the criteria necessary to be eligible to file voluntarily for Chapter 7 bankruptcy. Explain the “means test” that is required for filing Chapter 7 bankruptcy. State the criteria necessary for creditors to force debtors into involuntary bankruptcy. Learning Objectives (cont.) Distinguish between an order for relief and automatic stay in the bankruptcy process. List the federal exemptions debtors can exclude from the bankruptcy process. Recognize those debts that have priority payment status under the Bankruptcy Code. Explain Chapter 11 bankruptcy, emphasizing the reorganization process. Discuss the requirements for Chapters 12 and 13 bankruptcy. Bankruptcy and Debt Adjustment . | Business Law with UCC Applications,13e Bankruptcy and Debt Adjustment Chapter 21 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Summarize the history of bankruptcy law in the United States. Discuss restoring credit following bankruptcy. State the criteria necessary to be eligible to file voluntarily for Chapter 7 bankruptcy. Explain the “means test” that is required for filing Chapter 7 bankruptcy. State the criteria necessary for creditors to force debtors into involuntary bankruptcy. Learning Objectives (cont.) Distinguish between an order for relief and automatic stay in the bankruptcy process. List the federal exemptions debtors can exclude from the bankruptcy process. Recognize those debts that have priority payment status under the Bankruptcy Code. Explain Chapter 11 bankruptcy, emphasizing the reorganization process. Discuss the requirements for Chapters 12 and 13 bankruptcy. Bankruptcy and Debt Adjustment Bankruptcy’s History Constitutional Authority Restoring Credit Following Bankruptcy Bankruptcy and Debt Adjustment Liquidation—Chapter 7, Bankruptcy Code Commencing the Action Order for Relief Automatic Stay Federal Exemptions State Exemptions Trustee’s Duties Exceptions to Discharge Bankruptcy and Debt Adjustment Commencing the Action Voluntary Proceedings The Means Test Involuntary Proceedings Bankruptcy and Debt Adjustment Federal Exemptions Federal Homestead and Household Exemptions Necessities Benefits and Support Payments Bankruptcy and Debt Adjustment Trustee’s Duties Property Distribution Bankruptcy and Debt Adjustment Exceptions to Discharge Debts Created by Misconduct Debts Enforced by the Government Debts Created by Excessive Spending Bankruptcy and Debt Adjustment Reorganization—Chapter 11, Bankruptcy Code Special Features of Chapter 11 The Reorganization Plan Bankruptcy and Debt Adjustment The Reorganization Plan Creditors’ Committee Plan Qualifications Plan Approval Plan .