Bankruptcy Lawyer Moab Utah

bankruptcy attorney Moab Utah

Examples of Pro-Rata in Bankruptcy Law

Pro-rata is a distribution method that works among similarly situated Creditors. It determines how much of a bankruptcy estate a Creditor can receive. It also takes into account the total claim size of the Creditor class. The amount that each Creditor receives depends on the size of their allowed bankruptcy claims.

Transfers of specifically identifiable commodity contracts

One example of pro-rata in bankruptcy law involves transfers of specifically identifiable commodity contracts. This type of transfer involves the division of the total amount of property held in a commodity contract by the number of units in that commodity contract. The transfers can be one or more.

Pro rata distribution is a central theme in the Bankruptcy Code’s commodity broker provisions, which are located in chapter 7. Under this section, public customers of commodity brokers can share in the shortfall if there is a difference between the value of their property and the value of their shares. Pro-rata guidelines are set forth in appendix B of this part of the code.

Pro-rata also applies to transfers of publicly identifiable commodity contracts. In this case, the trustee transfers the positions in the commodity contract based on the number of customers who have open commodity contracts. The value of the commodities must be determined using the last market day’s realizable market value, which includes accrued interest.

Government tax claims

The bankruptcy priority order gives government tax claims top priority, but only if they’re unsecured. Other types of government claims do not get priority under bankruptcy law. For example, a statutory tax lien from a tax collector is a secured claim and does not receive top priority, so tax claims don’t get the top spot.

Transfers of equity security interest holders

In bankruptcy law, the transfer of an equity security interest may occur pro rata. However, the transferee does not have to pay the debtor the entire amount. For example, a debtor can make a payment to the transferee of pennies on the dollar. Afterward, the remaining debt is discharged.

Preference transfer law has long been a source of significant controversy. Creditors have consistently objected to the trustee’s ability to reverse such transfers. But the trustee’s power is limited to transfers made in the 90-day period prior to the filing of the bankruptcy petition. This is particularly disconcerting to non-repeat bankruptcy players.

The pro-rata rule is an important feature of bankruptcy law. It helps to avoid the unjust treatment of creditors. The law does not require creditors to share equally in the estate, but it does ensure that similar creditors receive a fair share.

If you have any questions, you can get a free consultation with Ascent Law LLC:

Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506

When you need a Bankruptcy Lawyer, contact this law firm:

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506
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Moab, Utah

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Moab, Utah
Southbound Main Street (U.S. 191) (2012)

Southbound Main Street (U.S. 191) (2012)
Location in Grand County and the state of Utah

Location in Grand County and the state of Utah
Coordinates: 38°34′21″N 109°32′59″WCoordinates38°34′21″N 109°32′59″W
Country United States of America
State Utah
County Grand
Settled 1878
Incorporated 1902
Named for Moab

 • Type Mayor/city council
 • Mayor Joette Langianese

 • Total 4.80 sq mi (12.42 km2)
 • Land 4.80 sq mi (12.42 km2)
 • Water 0.00 sq mi (0.00 km2)

4,026 ft (1,227 m)

 • Total 5,366[1]
 • Density 1,117.92/sq mi (432.05/km2)
Time zone UTC-7 (Mountain (MST))
 • Summer (DST) UTC-6 (MDT)
ZIP Code
Area code 435
FIPS code 49-50700[3]
GNIS feature ID 1430389[4]
U.S. Routes US 191.svg

Moab (/ˈm.æb/ (listen)) is the largest city and county seat of Grand County[5] in eastern Utah in the western United States, known for its dramatic scenery. The population was 5,366 at the 2020 census.[6] Moab attracts many tourists annually, mostly visitors to the nearby Arches and Canyonlands National Parks. The town is a popular base for mountain bikers who ride the extensive network of trails including the Slickrock Trail, and for off-roaders who come for the annual Moab Jeep Safari.[7]

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