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Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq.

Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

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Page 1: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

Bankruptcy: An Overview of the Process

and Selected Topics

Bruce J. Ruzinsky, Esq.

Matthew D. Cavenaugh, Esq.

Page 2: 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

Page 3: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

Key Concepts

• Property of the Estate• Cash Collateral• Automatic Stay• Executory Contracts• Avoidance Actions

• Discharge /• Dischargeability• Turnover• Plan / • Disclosure Statement

Page 4: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

PROPERTY OF THE ESTATE

What is it?

How does it affect you?

Page 5: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

CASH COLLATERAL

What is it?

Restrictions on use.

Page 6: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

AUTOMATIC STAY

What is it?

Exceptions: where the automatic stay does not apply.

Relief from the automatic stay.

Page 7: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

EXECUTORY CONTRACTS

What are they?

Assumption and Rejection.

Page 8: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

DISCHARGE / DISCHARGEABILITY

How does a Debtor get one?

Litigation.

Page 9: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

TURNOVER

Property of the Estate

Exception: Right of Setoff

Page 10: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

AVOIDANCE ACTIONS

Preferences and Fraudulent Transfers

The Debtor giveth, and the Trustee taketh away!

Page 11: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

PLAN / DISCLOSURE STATEMENT

Gotta have a plan.

Page 12: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

This may interest you…

• Exemptions.

• Proofs of Claim.

• Schedules / Statement of Financial Affairs

• Preference Exposure / Liability Analysis

• Section 341 Meetings

• Testimony in Court

Page 13: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

EXEMPTIONS

The Homestead

“Tools of the Trade”

Page 14: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

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.)

Page 15: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

SCHEDULES AND STATEMENT OF FINANCIAL AFFAIRS

Page 16: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

PREFERENCE EXPOSUREDon’t look now, but you may be exposed…

Page 17: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

WHO YOU MAY REPRESENT IN A BANKRUPTCY CASE

Debtor

Trustee

CRO

Committee

Creditors

Equity Interest Holders

Asset Purchasers

Page 18: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

REQUIRED MEETINGS

Section 341 Meeting

Initial Debtor Conference

Rule 2004 Exams

Page 19: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

TESTIMONY IN COURT“Do you solemnly swear…”

Page 20: Bankruptcy: An Overview of the Process and Selected Topics Bruce J. Ruzinsky, Esq. Matthew D. Cavenaugh, Esq

Questions?