TRUE OR FALSE
1. Examples of dischargeable debts in bankruptcy include student loans, child support,
judgments for fraud or breach of trust, and judgments based on injuries caused by the debtor
while under the influence of drugs or alcohol.
2. Chapters 11 and 13 provide for court-approved plans. In a Chapter 11 bankruptcy case the
entity (usually a business) seeking to reorganize is managed not by a trustee in bankruptcy but by
its own management, referred to as Debtor-In-Possession (DIP), who reports to a US Trustee
periodically as to how the entity is proceeding with its Plan of Reorganization. If the DIP is
mismanaged or corrupt, the creditor's committee or trustee can move the court for removal of
DIP management, and have the US Trustee take over management of the business.
3. If a creditor fails to perfect its security interest in a debtor's property the trustee can move to
seize the asset leaving the creditor unsecured and making the asset a part of the bankruptcy estate
to be used to pay bankruptcy costs and unsecured creditors..
Interactive Powerpoint_How to Master effective communication
TRUE OR FALSE1. Examples of dischargeable debts in bankruptcy incl.pdf
1. TRUE OR FALSE
1. Examples of dischargeable debts in bankruptcy include student loans, child support,
judgments for fraud or breach of trust, and judgments based on injuries caused by the debtor
while under the influence of drugs or alcohol.
2. Chapters 11 and 13 provide for court-approved plans. In a Chapter 11 bankruptcy case the
entity (usually a business) seeking to reorganize is managed not by a trustee in bankruptcy but by
its own management, referred to as Debtor-In-Possession (DIP), who reports to a US Trustee
periodically as to how the entity is proceeding with its Plan of Reorganization. If the DIP is
mismanaged or corrupt, the creditor's committee or trustee can move the court for removal of
DIP management, and have the US Trustee take over management of the business.
3. If a creditor fails to perfect its security interest in a debtor's property the trustee can move to
seize the asset leaving the creditor unsecured and making the asset a part of the bankruptcy estate
to be used to pay bankruptcy costs and unsecured creditors.
