The eLearning Center for Gatlin Education Services

Paralegals are in high demand in the field of debtor-creditor law. This course acquaints the student with the three most common forms of bankruptcy: Chapters 7, 11, and 13. The student learns the law of bankruptcy and develops practical experience becoming familiar with documents commonly used in bankruptcy practice. Students learn about the valuable role of paralegal professionals in a successful bankruptcy practice.

This course includes a thorough review of the new bankruptcy laws, which came into effect in 2005. Changes include a requirement that the debtor have counseling before they can file a bankruptcy case, and a means test now requires all debtors to meet a more rigorous income and asset standard before being qualified to file. The new law also imposes new requirements on lawyers, and by extension, the paralegals who do most of the bankruptcy work. These changes, and others, are reviewed in this course.

Objectives:

• Understand the nature, purpose and history of bankruptcy law.
• Define the common terms and concepts used in bankruptcy.
• Distinguish between the different chapters of bankruptcy law.
• Understand the time line and filing procedure for a typical consumer bankruptcy filing.
• Identify issues and problems from a fact pattern of a proposed bankruptcy filing.

Supplementary Course Documents:

• Brief History of Bankruptcy Law
• Origins
• Early English Law
• Early American Law
• Bankruptcy Acts of 1800 and 1841
• Bankruptcy Acts of 1867 and 1898
• Bankruptcy Reform Act of 1978
• Bankruptcy Explained
• Basic Concept
• Authority
• The Code
• The Universal Chapters
• The Operative Chapters
• Procedure
• Bankruptcy Law Cases
• Secondary Authority
• The Debtor's Team
• The Debtor
• The Debtor’s Attorney
• The Paralegal
• The Petition Preparer
• Creditors
• Claim Types
• Secured Creditors
• Priority Claim Creditors
• Unsecured Creditors
• Other Parties in Interest
• The Office of the Clerk of Court
• The Bankruptcy Court Clerk
• The Deputy Clerks
• The Bankruptcy Court
• The Administrative Office of the United States Courts
• The Judge
• The Law Clerk
• The Judge’s Secretary
• The Court Reporter
• Trustees, Private Trustee's and Examiners
• United States Trustee
• Private Trustees
• Standing Trustees
• Examiners
• The Debtor-Client
• Four Basic Tasks
• Initial Interview
• Analysis
• Bankruptcy Choices
• Chapter 7, 11 & 13
• Counseling Session
• Drafting Bankruptcy Forms
• The Creditor-Client
• Creditor’s Concerns
• Initial Interview
• If the Debtor is Bankrupt
• Alternatives
• Involuntary Bankruptcy
• Essay: Why going broke is a fact of life in America
• Westlaw Guide
• Articles
• Tougher Bankruptcy Rules Await Debt-Ridden Consumers
• Clearing Debt Through Bankruptcy Will Be Harder
• Facts About Consumer Credit Card Debt

Discussion Topics

Week 1:

• Chapter 7 Filings
• Additional Discussion Topic TBA

Week 2:

• Concepts in Bankruptcy Law
• Additional Discussion Topic TBA

Week 3:

• Chapter 7 Filing Procedure
• Additional Discussion Topic TBA

Week 4:

• The “Automatic Stay”
• Additional Discussion Topic TBA

Practical Assignment (required):

The Practical Assignment is due by the end of Week Three.

Optional practical assignments are also available for extra credit.

Quizzes and Tests

All students are required to take a final test during the final week of the course. Tests are administered in the online classroom, and all answers must be submitted by the last day of class.

Grading:

Grading is calculated as follows:

Course Topics:

Week 1:

• Introduction
• Overview of Bankruptcy
• History of Bankruptcy
• Bankruptcy Law in the United States
• Key Terms
• Bankruptcy Code and Rules
• Summary of the Code
• General Provisions, Chapter I
• Case Administration, Chapter 3
• Creditors
• Debtors
• The Estate
• Liquidation under Chapter 7
• Individual Reorganization under Chapter 13
• Brief Look at Chapter 11
• Federal Rules
• Local Rules
• Civil Procedure
• Official Forms
• Bankruptcy Abuse and Crime
• The Role of the Paralegal in a Bankruptcy Practice
• Community Legal Services
• Lending Departments of Corporations and Banks and Lending Institutions
• Representing Creditors
• Representing Debtors
• Representing Committees
• Representing Trustees
• Independent Paralegals in Bankruptcy for Consumers

Week 2:

• Major Concepts in Bankruptcy Law
• The Automatic Stay
• In General
• Specific Provisions of the Automatic Stay
• Executory Contracts and Unexpired Leases
• Uniform Commercial Code
• Article 2-Sales
• Article 9-Secured Transactions
• Real Estate Ownership and Financing
• Preferences
• Exemptions
• Obligations Not Discharged
• Fraudulent Transfers
• Statutory Liens
• Beginning a Bankruptcy Case
• Considering Whether the Client Should File a Bankruptcy Case
• Limitations on Filing
• Choosing the Right Chapter
• Substantial Abuse
• Case Preparation
• Client Relationships
• File Management
• Gathering Information
• Case Commencement
• The Checklist
• The Petition and Supporting Documents
• The Filing Fee
• The Schedules
• The Statement of Financial Affairs
• The Master Mailing List

Week 3:

• The Debtor’s Perspective
• Discharge
• Procedure
• Claims that are Always Dischargeable.
• Claims that are Never Dischargeable
• Claims that May Be Dischargeable
• Reaffirmations
• Exemptions
• Lien Avoidance
• Converting  or Dismissing a Case
• Changing Chapters
• Dismissing a Case
• The Creditor’s Perspective
• The Unsecured Creditor
• Involuntary Cases
• Proofs of Claim
• The No-Asset Case
• Case Monitoring
• Priority Creditors
• The Secured Creditor
• Proofs of Claim
• Cash Collateral Use
• Relief from the Automatic Stay

Week 4:

• The Trustee’s Perspective
• Collecting the Estate
• Locating Property
• Safeguarding Assets
• Turnover
• Preferences
• Statutory Liens
• Fraudulent Transfers or Obligations
• Liquidating the Estate
• Abandonment
• Sale of Assets
• Financing the Liquidation
• Distributing the Estate
• Objections to Claims
• Payment of Claim
• Closing the Case
• Special Chapter 13 Issues
• Administration
•  The Plan
• Discharge
• Converting, Dismissing and Closing the Case
• Brief Overview of Chapter 11 Complex Re-Organizations