Problem 7 1 The Chapter 7 trustee sells the property of the estate for $220,000 The costs of administering and selling the property of the estate are $20,000 The allowed unsecured claims in the case as follows A $30,000 B $ 40,000 C $50,000 D $60,000 E $70,000 F $150,000 (total allowed unsecured claims equals $400,000) How should the trustee distribute the $220,000 Problem 7 2 Recall that Chapter 7 involves liquidation the trustee sells the property of the estate and the proceeds of sale are distributed to creditors pursuant to Section 726 Recall also that property of the estate is limited to the interest of the debtor in property Thus if Markell owed Nickles $100,000 secured by a mortgage on Blackacre, and the sale of Blackacre netted $150,000, the first $100,000 would go to Nickles and the balance distributed according to section 726 Bu what if Markell owed Nickles $200,000 Would the bankruptcy estate benefit from aa sale of the property for $150,000 Why wouldn't the trustee simply let Nickles sell Blackacre Is there anything that simple in bankruptcy See Section 554 and Bankr Rule 6007(a) Problem 7 3 Debtors filing a Chapter 7 petition must complete Official Form 22A Please review Official Form 22A either in your statutory supplement or using this link https www uscourts gov forms means test forms chapter 7 statement your currentt monthly income Could your uncle, who has never been to law school, complete this form Remember the national median attorney's fees for a COMPLETE Chapter 7 case Form 22A and everything else is between $1,100 and $2,000 Problem 7 4 Markell, a Chapter 7 debtor, works as a salesperson for Ponoroff Auto Superstores As part of his compensation, Markell receives the personal use of a vehicle Markell's monthly pay advice shows taxable demo pay of $625 83, and states that this amount increases his taxable gross income only Because inclusion of the demo pay in current monthly income would boost Markell's income over the median annual income in his state, forcing him to fund a 60 month plan with income that he does not physically receive, Markell claims it should not be included in the calculation The U S Trustee, however, argues that a debtor's actual receipt of money is irrelevant to the determination of whether the demo pay should be included in CMI Who's right Compare In re Reinhart, 559 B R 217 (Bankr E D Wisc 2016) with In re Perez, 2016 WL 3230662 (Bankr E D Wisc 2016) PLEASE COMPARE THE CASES IN THE ANSWER Problem 7 5 What do you know about the Bankruptcy Code that explains why attorneys want to be paid in advance for the work that they do in a Chapter 7 but are willing to be paid over time under a Chapter 13 plan Problem 7 6 Epstein filed for Chapter 7 bankruptcy on October 18, 2019 received a discharge on January 25, 2020 However, just a year later Epstein is again in financial difficulty because of his propensity for spending exorbitant sums to purchase re mastered Kinky Friedman vinyl albums and CDs He comes to you for advice wanting to know if he can file a Chapter 7 bankruptcy petition in 2021, and, if so, can he obtain a second Chapter 7 discharge in that case See section 727(a) (8) Markell, a high school janitor, shows up to your office for an initial interview After discovering that his house is scheduled to be foreclosed upon tomorrow morning at 10 00 a m , you ask him for a list of his creditors and his debts Markell then dumps a shoe box full of receipts and other documents on your desk Rummaging through them, you find payroll stubs, casino matchbooks, and several oily receipts from the local drive through burger joint There is no order to the mess You ask Markell if he has any more papers, and he just shrugs Before filing the case, what should you discuss with Markell See section 727(a)(3) See also section 521(a), (e) Would it matter if Markell is a corporate CEO rather than a high school janitor See Meridian Bank u Alten, 958 F 2d 1226, 1232 (3d Cir 1992) PLEAASE CITE THE CASE IN THE ANSWER Problem 7 7 Dr Sholdra ( Sholdra ) filed a voluntary Chapter 7 petition on January 3 On March 23, Chilmark Financial LLC Chilmark), which holds an unsatisfied judgment against Sholdra for more than $1,470,000, filed an adversary proceeding in the bankruptcy court objecting to Sholdra's bankruptcy discharge Chilmark's complaint alleges that discharge should be denied under section 727(a) (2) for concealing assets, and or under section 727(a)(4)(A) for making a false oath or account in fling schedules and a statement of financial affairs In his deposition, Sholdra's testified that some information in his schedules and statement was false One week after the deposition, Sholdra fled amended schedules and statement of financial affairs prporting to correct such false statements Thereafter, Chilmark filed a motion for summary judgment on June 30 seeking summary judgment for Sholdra's violation of section 727(a)(4)(A), and for a judgment denying discharge Sholdra argues that there are genuine issues of material fact precluding summary judgment that the amended schedules and statement of financial affairs create genuine issues of material fact as to his intent to defraud He also argues that he is merely a medical doctor who is inexperienced with financial affairs and relied on incorrect information from a paralegal employed by his bankruptcy counsel and bad advice from his wife who was his business manager handling his financial affairs How should the bankruptcy judge rule See also Bub v Rockston Capital, LLC, 516 B R 685 (E D N Y 2014) Bankr Rule 1008, 18 U S C 152(a) PLEASAE CITE THE CASE IN YOUR ANSWER Problem 7 8 Your firm represents Chilmark Your client and Dr Sholdra have negotiated a settlement under which Dr Sholdra executes a $500,000 note in favor of Chilmark The settlement requires Chilmark to dismiss its objection to Dr Sholdra's discharge The senior lawyer on the matter tells you to take care of this How do you take care of the settlement and dismissal of the discharge complaint Problem 7 9 Nickles was the trustee in Epstein's bankruptcy case He was aware that Epstein acquired a small inheritance 90 days after filing his petition, which, under section 541(a)(6)A), became property of the estate Epstein never filed a supplementary schedule of property as required by Bankr Rule 1007(b) or turned the money over Nonetheless, Nickles took no action and Epstein's discharge was entered Six months later, the trustee files a complaint seeking revocation of Epstein's discharge based on section 727(d)(2) Epstein defends on the basis that the trustee knew of inheritance but failed to object to discharge Who will prevail Compare Thompson u Gargula (In re Thompson), 939 F 3d 1279 (11th Cir 2019) with Dietz v Mitchell (Ln re Dietz), 914 F 2d 161 (9th Cir 1990) PLEASE CITE THE CASES IN YOUR ANSWER

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Problem 7-1: The Chapter 7 trustee sells the property of the estate for $220,000. The costs of administering and selling the property of the estate

Problem 7-1: The Chapter 7 trustee sells the property of the estate for $220,000. The costs of administering and selling the property of the estate are $20,000. The allowed unsecured claims in the case as follows:

A - $30,000
B - $ 40,000
C - $50,000
D - $60,000
E - $70,000
F - $150,000 (total allowed unsecured claims equals $400,000)

How should the trustee distribute the $220,000?

Problem 7-2: Recall that Chapter 7 involves liquidation; the trustee sells the property of the estate and the proceeds of sale are distributed to creditors pursuant to Section 726. Recall also that property of the estate is limited to the interest of the debtor in property. Thus if Markell owed Nickles $100,000 secured by a mortgage on Blackacre, and the sale of Blackacre netted $150,000, the first $100,000 would go to Nickles and the balance distributed according to section 726. Bu what if Markell owed Nickles $200,000. Would the bankruptcy estate benefit from aa sale of the property for $150,000? Why wouldn't the trustee simply let Nickles sell Blackacre? Is there anything that simple in bankruptcy? See Section 554 and Bankr. Rule 6007(a).

Problem 7-3: Debtors filing a Chapter 7 petition must complete Official Form 22A. Please review Official Form 22A either in your statutory supplement or using this link: https://www.uscourts.gov/forms/means-test-forms/chapter-7-statement-your-currentt-monthly-income. Could your uncle, who has never been to law school, complete this form? Remember the national median attorney's fees for a COMPLETE Chapter 7 case - Form 22A and everything else - is between $1,100 and $2,000.

Problem 7-4: Markell, a Chapter 7 debtor, works as a salesperson for Ponoroff Auto Superstores. As part of his compensation, Markell receives the personal use of a vehicle. Markell's monthly pay advice shows taxable "demo" pay of $625.83, and states that this amount increases his taxable gross income only. Because inclusion of the demo pay in current monthly income would boost Markell's income over the median annual income in his state, forcing him to fund a 60-

month plan with income that he does not physically receive, Markell claims it should not be included in the calculation. The U.S. Trustee, however, argues that a debtor's actual receipt of money is irrelevant to the determination of whether the demo pay should be included in CMI. Who's right? Compare In re Reinhart, 559 B.R. 217 (Bankr. E.D. Wisc. 2016) with In re Perez, 2016 WL 3230662 (Bankr. E.D. Wisc. 2016). PLEASE COMPARE THE CASES IN THE ANSWER

Problem 7-5: What do you know about the Bankruptcy Code that explains why attorneys want to be paid in advance for the work that they do in a Chapter 7 but are willing to be paid over time under a Chapter 13 plan?

Problem 7-6:

Epstein filed for Chapter 7 bankruptcy on October 18, 2019 received a discharge on January 25, 2020. However, just a year later Epstein is again in financial difficulty because of his propensity for spending exorbitant sums to purchase re-mastered Kinky Friedman vinyl albums and CDs. He comes to you for advice wanting to know if he can file a Chapter 7 bankruptcy petition in 2021, and, if so, can he obtain a second Chapter 7 discharge in that case? See section 727(a) (8).
Markell, a high school janitor, shows up to your office for an initial interview. After discovering that his house is scheduled to be foreclosed upon tomorrow morning at 10:00 a.m., you ask him for a list of his creditors and his debts. Markell then dumps a shoe box full of receipts and other documents on your desk. Rummaging through them, you find payroll stubs, casino matchbooks, and several oily receipts from the local drive-through burger joint. There is no order to the mess. You ask Markell if he has any more papers, and he just shrugs. Before filing the case, what should you discuss with Markell? See section 727(a)(3). See also section 521(a), (e). Would it matter if Markell is a corporate CEO rather than a high school janitor? See Meridian Bank u. Alten, 958 F.2d 1226, 1232 (3d Cir. 1992). PLEAASE CITE THE CASE IN THE ANSWER

Problem 7-7: Dr. Sholdra ("Sholdra") filed a voluntary Chapter 7 petition on January 3. On March 23, Chilmark Financial LLC Chilmark), which holds an unsatisfied judgment against Sholdra for more than $1,470,000, filed an adversary proceeding in the bankruptcy court objecting to Sholdra's bankruptcy discharge. Chilmark's complaint alleges that discharge should be denied under section 727(a) (2) for concealing assets, and/or under section 727(a)(4)(A) for making a false oath or account in fling schedules and a statement of financial affairs. In his deposition, Sholdra's testified that some

information in his schedules and statement was false. One week after the deposition, Sholdra fled amended schedules and statement of financial affairs prporting to correct such false statements. Thereafter, Chilmark filed a motion for summary judgment on June 30 seeking summary judgment for Sholdra's violation of section 727(a)(4)(A), and for a judgment denying discharge. Sholdra argues that there are genuine issues of

material fact precluding summary judgment-that the amended schedules and statement of financial affairs create genuine issues of material fact as to his intent to defraud. He also argues that he is merely a medical doctor who is inexperienced with financial affairs and relied on incorrect information from a paralegal employed by his bankruptcy counsel and bad advice from his wife who was his business manager handling his financial affairs. How should the bankruptcy judge rule? See also Bub v. Rockston Capital, LLC, 516 B.R. 685 (E.D.N. Y. 2014); Bankr. Rule 1008, 18 U.S.C. 152(a). PLEASAE CITE THE CASE IN YOUR ANSWER

Problem 7-8: Your firm represents Chilmark. Your client and Dr. Sholdra have negotiated a settlement under which Dr. Sholdra executes a $500,000 note in favor of Chilmark. The settlement requires Chilmark to dismiss its objection to Dr. Sholdra's discharge. The senior lawyer on the matter tells you to "take care of this." How do you take care of the settlement and dismissal of the discharge complaint?

Problem 7-9: Nickles was the trustee in Epstein's bankruptcy case. He was aware that Epstein acquired a small inheritance 90 days after filing his petition, which, under section 541(a)(6)A), became property of the estate. Epstein never filed a supplementary schedule of property as required by Bankr. Rule 1007(b) or turned the money over. Nonetheless, Nickles took no action and Epstein's discharge was entered. Six months later, the trustee files a complaint seeking

revocation of Epstein's discharge based on section 727(d)(2). Epstein defends on the basis that the trustee knew of inheritance but failed to object to discharge. Who will prevail? Compare Thompson u. Gargula (In re Thompson), 939 F.3d 1279 (11th Cir. 2019) with Dietz v. Mitchell (Ln re Dietz), 914 F. 2d 161 (9th Cir. 1990). PLEASE CITE THE CASES IN YOUR ANSWER