Bankruptcy: An Overview of the Process
and Selected Topics
Bruce J. Ruzinsky, Esq.
Matthew D. Cavenaugh, Esq.
Overview
• I. Chapters of the Bankruptcy Code
• II. Key Concepts
• III. Points of Interest for Paralegals
Key Concepts
• Property of the Estate• Cash Collateral• Automatic Stay• Executory Contracts• Avoidance Actions
• Discharge /• Dischargeability• Turnover• Plan / • Disclosure Statement
PROPERTY OF THE ESTATE
What is it?
How does it affect you?
CASH COLLATERAL
What is it?
Restrictions on use.
AUTOMATIC STAY
What is it?
Exceptions: where the automatic stay does not apply.
Relief from the automatic stay.
EXECUTORY CONTRACTS
What are they?
Assumption and Rejection.
DISCHARGE / DISCHARGEABILITY
How does a Debtor get one?
Litigation.
TURNOVER
Property of the Estate
Exception: Right of Setoff
AVOIDANCE ACTIONS
Preferences and Fraudulent Transfers
The Debtor giveth, and the Trustee taketh away!
PLAN / DISCLOSURE STATEMENT
Gotta have a plan.
This may interest you…
• Exemptions.
• Proofs of Claim.
• Schedules / Statement of Financial Affairs
• Preference Exposure / Liability Analysis
• Section 341 Meetings
• Testimony in Court
EXEMPTIONS
The Homestead
“Tools of the Trade”
PROOF OF CLAIM
A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. (There is an official form for this purpose.)
SCHEDULES AND STATEMENT OF FINANCIAL AFFAIRS
PREFERENCE EXPOSUREDon’t look now, but you may be exposed…
WHO YOU MAY REPRESENT IN A BANKRUPTCY CASE
Debtor
Trustee
CRO
Committee
Creditors
Equity Interest Holders
Asset Purchasers
REQUIRED MEETINGS
Section 341 Meeting
Initial Debtor Conference
Rule 2004 Exams
TESTIMONY IN COURT“Do you solemnly swear…”
Questions?
