Bad faith- petitioner pays damages. An order of relief suspends all collection activities. Suspension of all legal action occurs. Alimony, child support obligations must be paid. Investigations begin to determine financial affairs of debtor.
Exempt property is determined.
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.