Core and Noncore proceedings. Core proceedings- decided by the bankruptcy judge. Noncore proceedings-resolved in state or federal courts. Purpose is to distribute the debtor s property and provide them with a fresh start. An estate is formed All property presently held Community property Property the trustee recovers from third properties After-acquired property 180 Days after filing Exempt Assets Keep the basic necessities for a fresh start.
Individual states own exemptions.
Secured creditors paid in full if collateral is sufficient. Priority creditors are next to be paid. If a partnership, partnership creditors have first right to partnership assets. Distribution of Claims Proof of claim is the validity and the amount of the claim. Only unsecured creditors require to file a proof of claim.