Petition Daniel E. Beren, John M. Elliot, and Edward F. Mannino formed Walnut Street Four, a general partnership, to purchase and renovate an office building in Harrisburg, Pennsylvania. They borrowed more than $ 200,000

If your last name begins with the letters ‘A’ through ‘M,’ complete problems 1 & 3
If your last name begins with the letters ‘N’ through ‘Z,’ complete problems 2 & 4
Petition Daniel E. Beren, John M. Elliot, and Edward F. Mannino formed Walnut Street Four, a general partnership, to purchase and renovate an office building in Harrisburg, Pennsylvania. They borrowed more than $ 200,000 from Hamilton Bank to purchase the building and begin renovation. Disagreements among the partners arose when the renovation costs exceeded their estimates. When Beren was unable to obtain assistance from Elliot and Mannino regarding obtaining additional financing, the partnership quit paying its debts. Beren filed an involuntary petition to place the partnership into Chapter 7 bankruptcy. The other partners objected to the bankruptcy filing. At the time of the filing, the partnership owed debts of more than $ 380,000 and had approximately $ 550 in the partnership bank account. Should the petition for involuntary bankruptcy be granted? In re Walnut Street Four, 106 B. R. 56, Web 1989 Bankr. Lexis 1806 ( United States Bankruptcy Court for the Middle District of Pennsylvania)
Automatic Stay James F. Kost filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. First Interstate Bank of Greybull ( First Interstate) held a first mortgage on the debtor’s residence near Basin, Wyoming. Appraisals and other evidence showed that the house was worth $ 116,000. The debt owed to First Interstate was almost $ 103,000 and was increasing at a rate of $ 32.46 per day. The debtor had only an 11.5 percent equity cushion in the property. Further evidence showed that ( 1) the Greybull/ Basin area was suffering from tough economic times, ( 2) there were more than 90 homes available for sale in the area, ( 3) the real estate market in the area was declining, ( 4) the condition of the house was seriously deteriorating and the debtor was not financially able to make the necessary improvements, and ( 5) the insurance on the property had lapsed. First Interstate moved for a relief from stay so that it could foreclose on the property and sell it. Should the motion be granted? In re Kost, 102 B. R. 829, Web 1989 U. S. Dist. Lexis 8316 ( United States District Court for the District of Wyoming)
Bailment The Sisters of Charity of the Incarnate Word, d. b. a. St. Elizabeth Hospital of Beaumont, operates a health and wellness center. Phil Meaux was a paying member of the health center. The rules of the center, which Meaux had been given, state, “ The Health & Wellness Center is not responsible for lost or stolen items.” A sign stating, “ We cannot assure the safety of your valuables” was posted at the check- in desk. The wellness center furnished a lock and key to each member but had a master key to open lockers in case a member forgot or lost his or her key. One day, Meaux went to the wellness center and placed his clothes, an expensive Rolex watch, and a money clip with $ 400 cash in the locker assigned him. Upon returning from swimming, Meaux discovered that his locker had been pried open, and his watch and money had been stolen by some unknown person. Meaux sued the Sisters of Charity, alleging that a bailment had been created between him and the Sisters and that the Sisters, as bailee, were negligent and therefore liable to him for the value of his stolen property. The trial court held in favor of Meaux and awarded him $ 19,500 as the value of the stolen property, plus interest and attorneys’ fees. The Sisters of Charity appealed. Was a bailment created between Meaux and the Sisters of Charity? Who wins? Sisters of Charity of the Incarnate Word v. Meaux, 122 S. W. 3d 428, Web 2003 Tex. App. Lexis 10189 ( Court of Appeals of Texas)
Bailment James D. Merritt leased a storage locker from Nationwide Warehouse Co., Ltd. ( Nationwide), and agreed to pay a monthly fee to lease the locker. Merritt placed various items in the leased premises but never informed Nationwide as to the nature or quantity of articles stored therein. Merritt was free to store or remove whatever he wished without consultation with, permission from, or notice to Nationwide. Merritt locked the leased premises with his own lock and key. Nationwide was not furnished with a key. Subsequently, certain personal property belonging to Merritt disappeared from the storage space. Merritt sued Nationwide to recover damages of $ 5,275. Was a bailment created between Merritt and Nationwide? Merritt v. Nation-wide Warehouse Co., Ltd., 605 S. W. 2d 250, Web 1980 Tenn. App. Lexis 338 ( Court of Appeals of Tennessee)
After completion of this module, student should be able to:
· Distinguish between the varied types of Bankruptcy proceedings, Chapters 7, 11 and 12/13.
· Understand what actions the trustee may take to discover, assemble, protect and/or liquidate a debtor’s assets.
· Identify which types of debts may be dischargeable in a bankruptcy proceeding.
· Understand the purpose of debtor exemptions.
· Distinguish between personal and real property and understand how real property may be converted to personal property.
· Identify means by which individuals can acquire an ownership interest in personal property.
· Distinguish between mislaid, lost and abandoned property, and understand which parties maintain priorities in ownership rights in each.
· Understand the elements of a bailment and be able to identify the three types of ordinary bailments.
· Recognize special types of bailment situations and the special rules that attach to each of them.
Assignment
Read Chapters 28, 47 & 48 in your text.
Review Powerpoints for Chapters 28, 47 & 48 posted in the Modules.
Take the short online quizzes for Chapter 28 & 47 (No quiz for Chapter 48).
Review the videos at the following link –
YouTube Video – Bankruptcy Basics
(Links to an external site.)
. There are 8 3-5 minute videos here. They provide really good coverage.
If your name is listed here, post an internet link to the Module 9 Topic on the message board that explains the concept/term assigned to you as it relates to the text materials –
Discharge Twinkal Patel
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