Bankruptcy Assignment
Warren and Westbrook, The Law of Debtors and Creditors

Sara Israelyan
Spring Semester 2011
University of Minnesota Law School

March, 2011

Warren and Westbrook, The Law of Debtors and Creditors
Problems
8.1 Absent bankruptcy, what can Harv and Lois protect as the creditors begin to move in? What if they filed a Chapter 7? What could they protect if they lived in Cheyenne, Wyoming?
When considering bankruptcy, pre-bankruptcy planning is one of the most important steps for Harv and Lois. In a Chapter 7 bankruptcy, the TIB will take all non-exempt valuable property that he can sell to distribute the money to the creditors. The main idea behind the Chapter 7 bankruptcy is ‘liquidation’. However, Harv and …show more content…

Under Wyoming law, Section 26-15-129 applies to this matter. Assuming that Suzan (widow) is the legal beneficiary of the insurance policy after her husband’s death (i.e. a policy is payable to the person other than the insured if and to the extent that a facility-of-payment clause or similar clause in the policy permits the insurer to discharge its obligation after the death of the individual insured by paying the death benefits to a person as permitted by the clause), an unlimited amount of the insurance policy (i.e. $ 1 million) will be exempted. Under Texas law, section 1108.0531(a)(1) applies. This section applies to any benefits to be provided to a beneficiary (Suzan), an insurance policy issued by a life. There is no limit on the amount (i.e. $ 1 million). Suzan’s double wide trailer will also be exempted under both Wyoming (section 1-20-104 which states that a house trailer or other movable home, the value of which does not exceed $ 6,000) and Texas (section 41.002(a) not more than 10 acres) law.

9.4. What suggestions would you make to Mr. Panoply? What sort of state remedies should he fear and how would your advice help? Are these collection remedies that might threaten no matter what? And so on.

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[ 1 ]. Pursuant to section 42.001 (a)(1)Texas Law, personal property is exempted for a family (Harv and Lois) and has an aggregate fair market value of