Daenerys Debtor owes $500,000 in non-contingent, liquidated,…

Daenerys Debtor owes $500,000 in non-contingent, liquidated, unsecured debts and, in addition, owes Kings Landing Bank $250,000 on a purchase-money mortgage loan secured by her home. Five months ago, Daenerys filed a petition under Chapter 7 of the Bankruptcy Code. As of the time of filing, Daenerys’s home had dropped in value to only $100,000. In Daenerys’s Chapter 7 case:

Rufus obtained his J.D. from Harvard in 2008.  The summer be…

Rufus obtained his J.D. from Harvard in 2008.  The summer before he graduated he was a summer associate for a large law firm in New York and accepted an offer to start there after passing the bar.  Due to the economy and law firms scaling back on the number of associates, his offer was revoked, and he has not been able to find equivalent employment.  He has substantial student loan debt- over $200,000 and interest has been accruing since six months after graduation.  The only work he has been able to find is as a line cook at Waffle House making $7.50 an hour, so he has not been able to pay back any of the debt.  Repaying his bills is a true hardship for Rufus.  He files a Chapter 7 bankruptcy seeking to discharge all of his student loan debt and other debt he has racked up on credit cards.  Rufus hopes his student loan creditor will not challenge his discharge.  Rufus gets lucky and the creditor fails to file an adversary proceeding disputing the discharge prior to his 341 meeting.  What happens to his student loan debt now?

Every debtor hopes to include as many of his debts under his…

Every debtor hopes to include as many of his debts under his bankruptcy umbrella as possible, so the debts can be discharged and the debtor can move on to his debt-free life. To be included in the bankruptcy, the debts must qualify as claims under §101(5). Under this section, a claim must: 1. Be matured; 2. Be unliquidated; 3. Result from an action or event that occured before the debtor’s bankruptcy filing; 4. If not liquidated by the time distributions of estate assets are to be made, be estimated for the purpose of allowance.

On January 1, Debtor Inc., a company with more than $100,000…

On January 1, Debtor Inc., a company with more than $100,000,000 in unsecured debt, filed a voluntary petition under Chapter 11. On February 1, a trustee was appointed in Debtor Inc.’s Chapter 11 case. Which of the following statements is correct (in the absence of a special court order)?