Question 1

Which of the following is false regarding provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

Accepted Answer

A)   Under the act, an individual may not generally be considered a debtor unless within 180 days prior to filing, the debtor receives credit counseling from a nonprofit budget and credit counseling agency.
B)   Under the act, if an individual was a debtor in a bankruptcy case that was dismissed within 180 days of the current case, the individual is generally not eligible to be a debtor under Chapters 7, 11, or 13.
C)   Under the act, if a previous bankruptcy was completed rather than dismissed, the individual is generally permitted to file for bankruptcy again.
D)   Under the act, if a party completes a Chapter 7 bankruptcy, the party is not permitted to seek a Chapter 7 bankruptcy again for eight years.
E)   Under the act, if a party completes a Chapter 7 bankruptcy, the party is not permitted to seek a Chapter 7 bankruptcy again for 180 days.F) A) and C)
G) A) and E)

Question 2

Which of the following is false regarding bankruptcy cases?

Accepted Answer

A)   The Bankruptcy Rules set forth procedures for bankruptcy cases.
B)   Bankruptcy cases are referred to bankruptcy judges, under the authority of the district courts.
C)   An appeal of a bankruptcy ruling goes to the district court judge.
D)   A jury is not allowed in a bankruptcy proceeding.
E)   Bankruptcy cases are filed in federal district courts.F) A) and E)
G) A) and B)

Question 3

The most familiar type of bankruptcy proceedings is known as a liquidation and is also sometimes called

Accepted Answer

A)   freeloading
B)   reformer bankruptcy
C)   straight bankruptcy
D)   easy bankruptcy
E)   debt avoidance bankruptcyF) B) and C)
G) D) and E)

Question 4

If a creditor knowingly continues to engage in legal action against a debtor once the debtor has received an automatic stay, which of the following are not included in the remedies the debtor may receive

Accepted Answer

A)   Attorney's fees
B)   Damages
C)   Costs
D)   Punitive damages
E)   Specific performanceF) A) and E)
G) A) and B)

Question 5

Each state has its own rules and regulations in regards to bankruptcy proceedings.

Accepted Answer

A) True 
 B)False

Question 6

If a debtor cannot pay their debts in a timely fashion, they are known as

Accepted Answer

A)   problematic debtors
B)   insolvent debtors
C)   in arrears debtors
D)   Foreclosed debtors
E)   statutory transactorsF) A) and C)
G) A) and B)

Question 7

[Consumer Debt] Isabel had not been keeping up with her spending and bought several expensive items. Between numerous credit cards and some unsecured loans, she had a total of 14 creditors. All her debt was consumer debt, and Isabel really wished that she had not put all those new clothes on her credit card. Although Isabel was struggling, she did not want to file for bankruptcy because she did not want a bad credit score. However, three of her credit card companies signed and filed an involuntary bankruptcy petition against her under Chapter 7. Isabel is unsure about how to proceed. While she is several months behind on a number of payments, including alimony payments she believes were unfairly awarded to her ex-husband, she does not particularly want to go bankrupt. She believes that the creditors have been unfair in not allowing her additional time in which to pay. On the other hand, she would really like to be rid of her excessive debt and stop collection efforts on the part of her ex-husband.
-Assuming that Isabel does not object to the bankruptcy proceeding, what is the next step that should occur?

Accepted Answer

A)   The court should appoint a temporary trustee.
B)   The court should appoint a trustee.
C)   The court should enter an order of relief.
D)   The court should hold a creditor's meeting.
E)   The court should determine if any claims have priority.F) B) and C)
G) A) and E)

Question 8

[Exemptions] Liane is injured in an automobile accident and cannot work. She cannot pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply, and Liane lists as exempt $25,000 in equity in her residence; interest in a vehicle of $2,000; interest in jewelry of $400; and retirement funds in her individual retirement account. Her creditors filed an objection to all claimed exemptions except for the home equity claim.
-Once the petition is filed, which of the following forms Liane's bankruptcy estate?

Accepted Answer

A)   All her prepetition assets.
B)   The exempt assets only.
C)   The nonexempt assets only.
D)   The personal goods only.
E)   The real estate only.F) A) and E)
G) None of the above

Question 9

Neldon must file for bankruptcy. If Neldon files a Chapter ________ that means he must turn over his assets to a trustee who will take over management of Neldon's assets and sell nonexempt assets.

Accepted Answer

A)   7
B)   9
C)   11
D)   13
E)   15F) D) and E)
G) B) and E)

Question 10

If an automatic stay is in effect in a Chapter 7 proceeding, which of the following statements is NOT accurate?

Accepted Answer

A)   Creditors cannot attempt to repossess property during bankruptcy proceedings.
B)   A creditor who received a judgment against a debtor prior to the bankruptcy filing may not act to enforce the judgment.
C)   Legal actions to collect child support payments are subject to the stay.
D)   The court may exclude secured creditors from the stay if they petition the court to show that they do not have adequate protection under the stay.
E)   If the debtor was a debtor in a bankruptcy case that was dismissed within a year of the current bankruptcy case filing, the stay automatically terminates 30 days after the current filing.F) A) and C)
G) A) and D)

Question 11

If Rafa chooses to reorganize his individual debts, which Chapter of the bankruptcy code would he file?

Accepted Answer

A)   Chapter 7
B)   Chapter 13
C)   Chapter 11
D)   Chapter 14
E)   Chapter 15F) C) and E)
G) A) and D)

Question 12

Under Chapter 7, a debtor must be insolvent to file a voluntary petition for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following was NOT a reason cited for passing the comprehensive changes to bankruptcy law included in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Accepted Answer

A)   The increased numbers of bankruptcy filings
B)   Significant losses associated with bankruptcy filings
C)   Making it simper and easier for consumers to file for bankruptcy
D)   Loopholes and incentives that allowed and sometimes encouraged opportunistic personal filings and abuse
E)   The fact that some bankruptcy debtors were able to repay a significant portion of their debtF) C) and D)
G) A) and B)

Question 14

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

Accepted Answer

A) True 
 B)False

Question 15

A bankruptcy trustee may, at times, take over a debtor's business during a Chapter 7 proceeding.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 14
E)   Chapter 15F) C) and D)
G) C) and E)

Question 17

Who can attempt to force a debtor into bankruptcy by filing an involuntary petition under Chapter 7?

Accepted Answer

A)   A court
B)   An employer
C)   Creditors
D)   The state
E)   Family members owed moneyF) A) and B)
G) C) and D)

Question 18

[Exemptions] Liane is injured in an automobile accident and cannot work. She cannot pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply, and Liane lists as exempt $25,000 in equity in her residence; interest in a vehicle of $2,000; interest in jewelry of $400; and retirement funds in her individual retirement account. Her creditors filed an objection to all claimed exemptions except for the home equity claim.
-What is the status of the exemptions Liane claimed on the car and jewelry?

Accepted Answer

A)   Both exemptions will likely be granted because their type and value are within allowable federal exemptions.
B)   The exemption claimed for the jewelry will likely be granted; but in order to ascertain the status of the vehicle, further information is needed in regard to whether it is used in business.
C)   The exemption claimed for the vehicle will likely be granted, but the exemption claimed for the jewelry will likely be disallowed because no exemption may be claimed for jewelry.
D)   The exemption claimed for the vehicle will likely be granted, but the exemption claimed for the jewelry will likely be disallowed because a federal exemption may only be claimed for jewelry consisting of a wedding band worth less than $400.
E)   The exemption claimed or the jewelry will likely be allowed, but the exemption claimed for the vehicle will likely be denied because the federal exemption for a vehicle is limited to $1,000.F) All of the above
G) B) and D)

Question 19

A discharge is an order written by a federal bankruptcy judge that states the debtor:

Accepted Answer

A)   is immune from creditor actions to collect a debt.
B)   is in the process of starting a bankruptcy proceeding.
C)   is unable to be sued.
D)   cannot be sued in state court.
E)   is able to discharge monies to creditors.F) A) and E)
G) C) and E)

Question 20

What happens when an order of relief is granted?

Accepted Answer

A)   The creditor gets relief from the automatic stay
B)   The debtor is relieved of all obligations to repay debts
C)   The bankruptcy can continue
D)   The bankruptcy is dismissed
E)   The debtor gets protection from collection effortsF) A) and E)
G) A) and D)

Exam 32: Bankruptcy and Reorganization

Which of the following is false regarding bankruptcy cases?

Correct Answer
verified

Who can attempt to force a debtor into bankruptcy by filing an involuntary petition under Chapter 7?

Correct Answer
verified

Which of the following was NOT a reason cited for passing the comprehensive changes to bankruptcy law included in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Correct Answer
verified

A bankruptcy trustee may, at times, take over a debtor's business during a Chapter 7 proceeding.

Correct Answer
verified

Correct Answer
verified

If a debtor cannot pay their debts in a timely fashion, they are known as

Correct Answer
verified

Each state has its own rules and regulations in regards to bankruptcy proceedings.

Correct Answer
verified

Neldon must file for bankruptcy. If Neldon files a Chapter ________ that means he must turn over his assets to a trustee who will take over management of Neldon's assets and sell nonexempt assets.

Correct Answer
verified

If an automatic stay is in effect in a Chapter 7 proceeding, which of the following statements is NOT accurate?

Correct Answer
verified

A discharge is an order written by a federal bankruptcy judge that states the debtor:

Correct Answer
verified

Under Chapter 7, a debtor must be insolvent to file a voluntary petition for bankruptcy.

Correct Answer
verified

If a creditor knowingly continues to engage in legal action against a debtor once the debtor has received an automatic stay, which of the following are not included in the remedies the debtor may receive

Correct Answer
verified

If Rafa chooses to reorganize his individual debts, which Chapter of the bankruptcy code would he file?

Correct Answer
verified

Correct Answer
verified

What happens when an order of relief is granted?

Correct Answer
verified

Which of the following is false regarding provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

Correct Answer
verified

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Correct Answer
verified

Correct Answer
verified

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

Correct Answer
verified

The most familiar type of bankruptcy proceedings is known as a liquidation and is also sometimes called

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

Which of the following is false regarding bankruptcy cases?

Correct AnswerverifiedShow Answer

Who can attempt to force a debtor into bankruptcy by filing an involuntary petition under Chapter 7?

Correct AnswerverifiedShow Answer

Which of the following was NOT a reason cited for passing the comprehensive changes to bankruptcy law included in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Correct AnswerverifiedShow Answer

A bankruptcy trustee may, at times, take over a debtor's business during a Chapter 7 proceeding.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a debtor cannot pay their debts in a timely fashion, they are known as

Correct AnswerverifiedShow Answer

Each state has its own rules and regulations in regards to bankruptcy proceedings.

Correct AnswerverifiedShow Answer

Neldon must file for bankruptcy. If Neldon files a Chapter ________ that means he must turn over his assets to a trustee who will take over management of Neldon's assets and sell nonexempt assets.

Correct AnswerverifiedShow Answer

If an automatic stay is in effect in a Chapter 7 proceeding, which of the following statements is NOT accurate?

Correct AnswerverifiedShow Answer

A discharge is an order written by a federal bankruptcy judge that states the debtor:

Correct AnswerverifiedShow Answer

Under Chapter 7, a debtor must be insolvent to file a voluntary petition for bankruptcy.

Correct AnswerverifiedShow Answer

If a creditor knowingly continues to engage in legal action against a debtor once the debtor has received an automatic stay, which of the following are not included in the remedies the debtor may receive

Correct AnswerverifiedShow Answer

If Rafa chooses to reorganize his individual debts, which Chapter of the bankruptcy code would he file?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What happens when an order of relief is granted?

Correct AnswerverifiedShow Answer

Which of the following is false regarding provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

Correct AnswerverifiedShow Answer

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

Correct AnswerverifiedShow Answer

The most familiar type of bankruptcy proceedings is known as a liquidation and is also sometimes called

Correct AnswerverifiedShow Answer

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