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?