Question 1

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Accepted Answer

A) True 
 B)False

Question 2

A debt is an obligation to pay money owed by a debtor to a creditor.

Accepted Answer

A) True 
 B)False

Question 3

Bankruptcy legislation serves a dual purpose.What are these purposes?

Accepted Answer

Bankruptcy legislation serves a dual pur...

Question 4

Under the exemptions found in the federal Bankruptcy Code,which of the following items may the debtor keep?

Accepted Answer

A)  A homestead of any value.
B)  Cash in the bank of $3,000.
C)  $10,000 per month in payments from a pension plan.
D)  All of the above are exempt under the federal exemptions.
E)  Two of the above, (b)  and (c) .F) All of the above
G) A) and C)

Question 5

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Accepted Answer

A)  a non-statutory composition.
B)  a statutory assignment.
C)  an equity receivership.
D)  an automatic stay.E) A) and D)
F) A) and B)

Question 6

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

Accepted Answer

A) True 
 B)False

Question 7

If the debtor is an individual whose debts are primarily consumer debts,the trustee may not avoid any transfer,within 90 days of bankruptcy,of property valued at less than $600.

Accepted Answer

A) True 
 B)False

Question 8

John's brother,Phil,loaned him $10,000 to start his business.John didn't do too well and planned to file for bankruptcy.In May,he gave Phil his car worth $8,000 to satisfy the debt.John filed his petition in November.After liquidation,if the car were included in his assets,every unsecured debtor would have received 85% of the debt owing to him.Will this be a voidable preference?

Accepted Answer

A)  Yes, since Phil is an insider.
B)  No, because the transfer was made more than 90 days prior to filing.
C)  Yes, because the transfer was made within the prior year.
D)  No, because Phil did not receive preferential treatment over other creditors.E) A) and D)
F) None of the above

Question 9

A private employer:

Accepted Answer

A)  may terminate the employment of an individual solely because he has been a debtor in bankruptcy.
B)  may not discriminate with regard to employment solely because an individual was insolvent before the commencement of a bankruptcy case.
C)  has no restrictions regarding employment practices involving individuals who are or have been debtors under the Bankruptcy Code.
D)  may discriminate with respect to employment against an individual who has not paid a debt that is dischargeable in a case under the Bankruptcy Code.E) B) and D)
F) B) and C)

Question 10

Match each statement with the correct term below.
-secured transaction

Accepted Answer

A)  The right in personal property that secures payment or performance of an obligation.
B)  Goods that are so related to real property that they are considered part of the real estate.
C)  A document filed to provide notice of a security interest.
D)  Property subject to a security interest.
E)  Tangible or electronic record that evidences both a debt and a security interest in specific goods.F) Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.G) Delivery of personal property to a creditor as security for payment of a debt.H) An agreement between the debtor and creditor creating a security interest.I) Goods bought or used primarily for personal, family, or household purposes.J) Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.K) A surety liable to a creditor immediately upon the default of a principal debtor.L) Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.M) The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.N) A surety's assumption of the creditor's rights.O) A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.P) Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.Q) Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.R) The person responsible for collecting, liquidating, and distributing the debtor's estate.S) A right to payment.T) Enforceability of a security interest against third parties.U) A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.V) Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.W) An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.X) Prevents attempts by creditors to recover claims against the debtor.Y) A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.Z) E) and K)
[) B) and M)

Question 11

A trustee under a Chapter 11 or 13 proceeding performs the same duties as a Chapter 7 trustee.

Accepted Answer

A) True 
 B)False

Question 12

Bill has loaned Mark $500,which Mark agreed to repay on January 15,2012.If Mark files a voluntary petition of bankruptcy on August 1,2011,Bill has a claim as a creditor.

Accepted Answer

A) True 
 B)False

Question 13

An involuntary petition for bankruptcy can be filed against a:

Accepted Answer

A)  non-profit charitable organization.
B)  partnership that invests in real estate.
C)  life insurance company.
D)  wheat farmer.E) None of the above
F) A) and B)

Question 14

Match each statement with the correct term below.
-secured claim

Accepted Answer

A)  The right in personal property that secures payment or performance of an obligation.
B)  Goods that are so related to real property that they are considered part of the real estate.
C)  A document filed to provide notice of a security interest.
D)  Property subject to a security interest.
E)  Tangible or electronic record that evidences both a debt and a security interest in specific goods.F) Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.G) Delivery of personal property to a creditor as security for payment of a debt.H) An agreement between the debtor and creditor creating a security interest.I) Goods bought or used primarily for personal, family, or household purposes.J) Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.K) A surety liable to a creditor immediately upon the default of a principal debtor.L) Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.M) The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.N) A surety's assumption of the creditor's rights.O) A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.P) Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.Q) Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.R) The person responsible for collecting, liquidating, and distributing the debtor's estate.S) A right to payment.T) Enforceability of a security interest against third parties.U) A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.V) Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.W) An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.X) Prevents attempts by creditors to recover claims against the debtor.Y) A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.Z) D) and Y)
[) D) and H)

Question 15

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 16

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

Accepted Answer

The trustee in bankruptcy is the represe...

Question 17

A trustee in bankruptcy may avoid which of the following?

Accepted Answer

A)  Fraudulent transfers.
B)  Voidable preferences.
C)  Automatic stays.
D)  Both fraudulent transfers and voidable preferences.E) B) and D)
F) None of the above

Question 18

Match each statement with the correct term below.
-security interest

Accepted Answer

A)  The right in personal property that secures payment or performance of an obligation.
B)  Goods that are so related to real property that they are considered part of the real estate.
C)  A document filed to provide notice of a security interest.
D)  Property subject to a security interest.
E)  Tangible or electronic record that evidences both a debt and a security interest in specific goods.F) Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.G) Delivery of personal property to a creditor as security for payment of a debt.H) An agreement between the debtor and creditor creating a security interest.I) Goods bought or used primarily for personal, family, or household purposes.J) Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.K) A surety liable to a creditor immediately upon the default of a principal debtor.L) Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.M) The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.N) A surety's assumption of the creditor's rights.O) A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.P) Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.Q) Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.R) The person responsible for collecting, liquidating, and distributing the debtor's estate.S) A right to payment.T) Enforceability of a security interest against third parties.U) A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.V) Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.W) An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.X) Prevents attempts by creditors to recover claims against the debtor.Y) A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.Z) E) and G)
[) H) and U)

Question 19

Under Chapter ___________,the bankruptcy estate does not include wages earned after commencement of the case.

Accepted Answer

A)  7
B)  11
C)  13
D)  All of the aboveE) A) and B)
F) None of the above

Question 20

Match each statement with the correct term below.
-subrogation

Accepted Answer

A)  The right in personal property that secures payment or performance of an obligation.
B)  Goods that are so related to real property that they are considered part of the real estate.
C)  A document filed to provide notice of a security interest.
D)  Property subject to a security interest.
E)  Tangible or electronic record that evidences both a debt and a security interest in specific goods.F) Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.G) Delivery of personal property to a creditor as security for payment of a debt.H) An agreement between the debtor and creditor creating a security interest.I) Goods bought or used primarily for personal, family, or household purposes.J) Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.K) A surety liable to a creditor immediately upon the default of a principal debtor.L) Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.M) The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.N) A surety's assumption of the creditor's rights.O) A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.P) Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.Q) Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.R) The person responsible for collecting, liquidating, and distributing the debtor's estate.S) A right to payment.T) Enforceability of a security interest against third parties.U) A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.V) Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.W) An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.X) Prevents attempts by creditors to recover claims against the debtor.Y) A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.Z) J) and L)
[) D) and Q)

Exam 38: Bankruptcy

Correct Answer
verified

Bill has loaned Mark $500,which Mark agreed to repay on January 15,2012.If Mark files a voluntary petition of bankruptcy on August 1,2011,Bill has a claim as a creditor.

Correct Answer
verified

Bankruptcy legislation serves a dual purpose.What are these purposes?

Correct Answer
verified
Bankruptcy legislation serves a dual pur...
View Answer

An involuntary petition for bankruptcy can be filed against a:

Correct Answer
verified

A debt is an obligation to pay money owed by a debtor to a creditor.

Correct Answer
verified

Under Chapter ___________,the bankruptcy estate does not include wages earned after commencement of the case.

Correct Answer
verified

A trustee under a Chapter 11 or 13 proceeding performs the same duties as a Chapter 7 trustee.

Correct Answer
verified

Match each statement with the correct term below. -security interest

Correct Answer
verified

Match each statement with the correct term below. -subrogation

Correct Answer
verified

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

Correct Answer
verified

A private employer:

Correct Answer
verified

Under the exemptions found in the federal Bankruptcy Code,which of the following items may the debtor keep?

Correct Answer
verified

A trustee in bankruptcy may avoid which of the following?

Correct Answer
verified

If the debtor is an individual whose debts are primarily consumer debts,the trustee may not avoid any transfer,within 90 days of bankruptcy,of property valued at less than $600.

Correct Answer
verified

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Correct Answer
verified

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

Correct Answer
verified

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Correct Answer
verified

Match each statement with the correct term below. -secured claim

Correct Answer
verified

Match each statement with the correct term below. -secured transaction

Correct Answer
verified

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

Correct Answer
verified
The trustee in bankruptcy is the represe...
View Answer

Exam 38: Bankruptcy

Correct AnswerverifiedShow Answer

Bill has loaned Mark $500,which Mark agreed to repay on January 15,2012.If Mark files a voluntary petition of bankruptcy on August 1,2011,Bill has a claim as a creditor.

Correct AnswerverifiedShow Answer

Bankruptcy legislation serves a dual purpose.What are these purposes?

Correct AnswerverifiedBankruptcy legislation serves a dual pur...View AnswerShow Answer

An involuntary petition for bankruptcy can be filed against a:

Correct AnswerverifiedShow Answer

A debt is an obligation to pay money owed by a debtor to a creditor.

Correct AnswerverifiedShow Answer

Under Chapter ___________,the bankruptcy estate does not include wages earned after commencement of the case.

Correct AnswerverifiedShow Answer

A trustee under a Chapter 11 or 13 proceeding performs the same duties as a Chapter 7 trustee.

Correct AnswerverifiedShow Answer

Match each statement with the correct term below. -security interest

Correct AnswerverifiedShow Answer

Match each statement with the correct term below. -subrogation

Correct AnswerverifiedShow Answer

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

Correct AnswerverifiedShow Answer

A private employer:

Correct AnswerverifiedShow Answer

Under the exemptions found in the federal Bankruptcy Code,which of the following items may the debtor keep?

Correct AnswerverifiedShow Answer

A trustee in bankruptcy may avoid which of the following?

Correct AnswerverifiedShow Answer

If the debtor is an individual whose debts are primarily consumer debts,the trustee may not avoid any transfer,within 90 days of bankruptcy,of property valued at less than $600.

Correct AnswerverifiedShow Answer

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Correct AnswerverifiedShow Answer

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

Correct AnswerverifiedShow Answer

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Correct AnswerverifiedShow Answer

Match each statement with the correct term below. -secured claim

Correct AnswerverifiedShow Answer

Match each statement with the correct term below. -secured transaction

Correct AnswerverifiedShow Answer

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

Correct AnswerverifiedThe trustee in bankruptcy is the represe...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Bankruptcy legislation serves a dual pur...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The trustee in bankruptcy is the represe...
View Answer