This course offers a thorough history of bankruptcy laws, statistical trends in recent years, and information regarding how the bankruptcy court is structured. This course provide you with knowledge on the various bankruptcy chapters, what types of documents must be completed, immediate issues that are of importance, as well as prevention.

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Following are the topics and learning objectives:



Bankruptcy History and Court Structure:

• Relate the issues involved in bankruptcy and the importance of balancing the needs of both debtors and creditors
• Describe the influence of our legal roots in Europe on the direction of bankruptcy law in America
• Relate the historical problems with bankruptcy law in the U.S. and the various reforms that attempted to address these problems
• Explain the statistical trends regarding bankruptcy and their impact on credit unions
• List and discuss the causes of the increase in bankruptcy filings
• Describe the structure of the bankruptcy courts
• Identify the most recent reforms instituted by the Bankruptcy Reform Act of 2005

Bankruptcy Basic Concepts:
• List the various types of bankruptcies
• Define the terms used and roles involved in bankruptcy procedures
• Describe the Chapter 7 bankruptcy process
• Explain the Chapter 13 bankruptcy process

Bankruptcy Documents:
• Recognize the first notice of bankruptcy and identify its parts
• Understand your credit union's initial steps upon receiving a first notice of bankruptcy
• Identify the documents required in a Chapter 7 bankruptcy
• Define the means test
• Describe the method for determining if debtors meet the means test and the options and exceptions available if they do not

Bankruptcy Immediate Issues:
• Define the automatic stay and list the actions your credit union may take, as well as the actions that are prohibited
• Summarize the information that should be gathered by your credit union at the creditors’ meeting
• Explain the issues involved with the proof of claim
• Define statement of intention, redemption, reaffirmation, and surrender
• List the property that is generally exempt from liquidation in Chapter 7

Bankruptcy Abuse and Recoveries:
• Summarize the process of discharge under Chapter 13
• Describe the characteristics of Chapter 7 bankruptcies and list situations in which discharge will be denied
• List examples of bankruptcy abuse
• Recognize examples of cases in which recovery would occur

Bankruptcy Do’s and Don’ts:
• Evaluate your credit union’s lending practices
• List ways to protect your credit union after loan problems develop
• Describe ways to educate your members in financial responsibility
• List proactive steps to take when receiving a bankruptcy notice
• Identify items to review in the bankrupt member’s file
• Explain how to protect the interests of your credit union without engaging in discrimination