This topic contains a solution. Click here to go to the answer

Author Question: Mark and Cynthia work for Bryson Supply Co If the company files for Chapter 7 bankruptcy before ... (Read 68 times)

Starlight

  • Hero Member
  • *****
  • Posts: 567
Mark and Cynthia work for Bryson Supply Co If the company files for Chapter 7 bankruptcy before paying their last month of wages and benefits, will they be able to recover anything from the company?

Question 2

The ship Darby O departed the Port of Yokohama, Japan to deliver Toyota parts to Miami, Florida through the Panama Canal. Due civil strife within Panama, the Canal is closed due to armed conflict. The carrier is entitled to claim increased expenses as a result to traveling the long route down South America under the perils of the sea?
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuwy

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

One goal of the Bankruptcy Code is to ensure creditors are paid in the proper order. The Code places all claims into one of three classes: secured claims, priority claims, and unsecured claims. Secured claims are paid in full before priority claims are paid. Payments to employees for back wages and benefits for work performed during the 180 days prior to the filing of bankruptcy are in the class of priority claims. If Bryson has enough assets to pay all its secured claims and its priority claims, Mark and Cynthia will each be able to recover up to 12,475 for the work performed and pension, health, or life insurance plans for work performed during the 180 days prior to the date of Bryson's petition. There are subcategories of priority claims, and each subcategory must receive full payment before the next subcategory receives anything. If there are not enough funds to pay a whole subcategory, the claimants in that subcategory receive pro rata shares. The priority subcategories, in order, include: alimony and child support, administrative expenses, gap expenses, payments to employees, employee benefit plans, consumer deposits for goods to be purchased, taxes, and claims for injuries caused by a bankrupt driving under the influence.

Answer to Question 2

FALSE




Starlight

  • Member
  • Posts: 567
Reply 2 on: Jun 24, 2018
Thanks for the timely response, appreciate it


at

  • Member
  • Posts: 359
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

For a complete list of videos, visit our video library