Video: Bankruptcy and Insolvency Overview

In this engaging lesson, Nick Palazzolo, CPA, offers a comprehensive breakdown of bankruptcy and insolvency, and the intricate relationship between the two. He sets out to clarify the rights and responsibilities that debtors and creditors face when navigating these challenging financial situations. With a focus on practical application, Nick meticulously outlines the differences between various bankruptcy types, specifically chapters 7, 11, and 13, which are pivotal for a thorough understanding. He further discusses the nuances of indebtedness discharge in bankruptcies and how certain debts are resolved. Throughout the lesson, real-life scenarios serve as tools for understanding the application of laws in bankruptcy cases, enhancing the ability to effectively determine case-specific bankruptcy types. Dive in with Nick and arm yourself with the knowledge to confidently analyze and interpret bankruptcy and insolvency situations.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Welcome to our lesson on bankruptcy and insolvency. These two concepts go hand in hand. Makes sense. If you're insolvent, you go bankrupt. If you're bankrupt, probably because of insolvency. Let's dive into our learning objectives and see what we have for today. First off, we're going to want to explain the rights of the debtors and creditors in bankruptcy and insolvency. There are rights and obligations on both sides. So we're going to talk about those. We want to summarize the rules related to different types of bankruptcy. Just something you're going to definitely have to do. Memorize the differences in the attributes of Chapter 7, 11, 13. Those are going to be very commonly asked on the exam. We also want to explain the discharge of indebtedness in bankruptcy and which types of bankruptcy is that discharged, what types of debts are discharged. We also want to identify the rights of the debtors and creditors in bankruptcy and insolvency in given scenarios. Like prior lessons, business law is going to have a lot of different scenarios. You're going to be given a big blob of text, and you need to apply everything you've learned in these lessons to get through the scenario and understand the results. Lastly, we want to identify the type of bankruptcy described in a specific scenario. As mentioned, I've got examples from real life, and if you've got any that you remember, that is also very helpful. Just like with agency law or contract law, if you can remember real life examples and tie the attributes of those in your mind, then yeah, that's going to be incredibly helpful. So let's dive right in, get started. I know you're just ready to get going.

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Bankruptcy, Debtors & Creditors, and Secured Transactions

Module: 3 Concepts, 46 Videos

Secured Transactions, Including the Rights, Duties and Liabilities of Debtors, Creditors and Guarantors Overview

2:55

Introduction to Secured Transactions

5:24

Debtors, Creditors, and Guarantors

3:10

Surety vs. Guarantor