Question 1

Denise,who has several credit cards and lots of unsecured debt,cannot make her payments but does not want to file for bankruptcy protection.She knows that you are taking business law and asks you whether she can be forced into Chapter 7 bankruptcy and,if so,under what circumstances.What would you tell her?

Accepted Answer

She should be informed that if she has 1...

Question 2

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,if a party completes a Chapter 7 bankruptcy,the party is not permitted to seek a Chapter 7 bankruptcy again for 180 days.
B)  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.
C)  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.
D)  Under the act,if a previous bankruptcy was completed rather than dismissed,the individual is generally permitted to file for bankruptcy again.
E)  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.F) B) and E)
G) A) and C)

Question 3

A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the ________.

Accepted Answer

A)  An automatic stay
B)  A stop order
C)  A semi-automatic dismissal
D)  A semi-discharge
E)  There is no such moratorium in a Chapter 7 proceedingF) C) and E)
G) A) and E)

Question 4

How is a determination made regarding the identity of the trustee in a Chapter 7 proceeding?

Accepted Answer

A)  The debtor appoints the trustee.
B)  The court clerk appoints the trustee.
C)  The district court judge appoints the trustee.
D)  The bankruptcy judge appoints the trustee.
E)  The creditors elect the trustee.F) A) and E)
G) B) and D) E

Question 5

Which of the following occurs when a debtor turns over all assets to a trustee?

Accepted Answer

A)  Reorganization
B)  Acknowledgment
C)  Liquidation
D)  Avoidance
E)  ReformationF) A) and D)
G) None of the above

Question 6

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 7

Which of the following is false regarding Chapter 12 of the bankruptcy code?

Accepted Answer

A)  At least 50 percent of the family farmer's debt must be farm-related.
B)  The debt must be under a certain debt cap.
C)  A family farmer under Chapter 12 must have regular annual income.
D)  The family farmer's gross income must be at least 50 percent farm-dependent.
E)  Congress modeled Chapter 12 after Chapter 7 relief.F) A) and E)
G) A) and B)

Question 8

What is the last of the basic steps of a bankruptcy proceeding?

Accepted Answer

A)  The granting of an automatic stay
B)  A determination on whether an order of relief should be granted
C)  The creditors meet with the debtor
D)  Discharging debts
E)  The petition for the prompt repayment of secured creditor claimsF) A) and E)
G) All of the above

Question 9

A meeting of all creditors listed in the Chapter 7 required schedules for liquidation is referred to as which of the following?

Accepted Answer

A)  A counseling meeting
B)  A creditors' meeting
C)  A control meeting
D)  A debt meeting
E)  An enforcement meetingF) A) and C)
G) B) and C)

Question 10

Which test may allow a court to presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

Accepted Answer

A)  The means test
B)  The median test
C)  The liquidation test
D)  The assets test
E)  The bankruptcy testF) B) and D)
G) A) and E)

Question 11

Chapter 11 reorganization may be involuntary but not voluntary.

Accepted Answer

A) True 
 B)False

Question 12

An individual must complete credit counseling from a nonprofit budget and credit counseling agency to avoid having his bankruptcy petition dismissed.

Accepted Answer

A) True 
 B)False  True

Question 13

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged.What type of agreement will Juanita and Broderick make?

Accepted Answer

A)  An accord and compromise
B)  A settlement
C)  A reaffirmation agreement
D)  An affirmance
E)  An acknowledgement agreementF) C) and D)
G) A) and C)

Question 14

What is the first action the court takes after a petition for bankruptcy is filed?

Accepted Answer

A)  A determination on whether an order of relief should be granted
B)  Discharging debts
C)  The granting of an automatic stay
D)  Ordering a creditor meeting
E)  The creation of a payment planF) None of the above
G) C) and D)

Question 15

What if a creditor continues to engage in legal action against a debtor when an automatic stay is in effect?

Accepted Answer

A)  The creditor forfeits all claims against the defendant.
B)  The debtor can recover damages,costs,attorney fees,and even possibly punitive damages.
C)  The creditor can continue with repossession proceedings but not with garnishment.
D)  The creditor can continue as long as the creditor can prove that the legal action was underway before the stay went into effect.
E)  The debtor must ask the court to reinstate the stay and to issue an injunction against the creditor.F) B) and E)
G) A) and C)

Question 16

Congress first addressed bankruptcy relief in the ________.

Accepted Answer

A)  Insolvency Act of 1900
B)  Protection Act of 1934
C)  Securities Act of 1934
D)  Bankruptcy Act of 1898
E)  Bankruptcy Act of 1934F) D) and E)
G) None of the above

Question 17

When the debtor agrees to pay a debt even though it could be discharged,it is referred to as which of the following?

Accepted Answer

A)  A settlement
B)  An affirmance
C)  A reaffirmation agreement
D)  An acknowledgement agreement
E)  An accord and compromiseF) C) and E)
G) A) and B)

Question 18

In bankruptcy,debtors who cannot pay their debts in a timely fashion are referred to as which of the following?

Accepted Answer

A)  Statutory debtors
B)  Failed transactors
C)  Insolvent debtors
D)  Foreclosed debtors
E)  Acknowledged transactorsF) B) and C)
G) A) and E)

Question 19

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

Accepted Answer

A)  Bankruptcy estate
B)  Remainder
C)  Relinquished asset pool
D)  Residual estate
E)  CorpusF) A) and E)
G) D) and E) A

Question 20

Which of the following are permitted to file under Chapter 11 reorganization?

Accepted Answer

A)  Commodities brokers
B)  Stockbrokers
C)  Savings and loan companies
D)  Banks
E)  Corporate debtorsF) D) and E)
G) A) and E)

Exam 32: Bankruptcy and Reorganization

Correct Answer
verified
She should be informed that if she has 1...
View Answer

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

Correct Answer
verified

A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the ________.

Correct Answer
verified

How is a determination made regarding the identity of the trustee in a Chapter 7 proceeding?

Correct Answer
verified
E

Which of the following occurs when a debtor turns over all assets to a trustee?

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

Which of the following is false regarding Chapter 12 of the bankruptcy code?

Correct Answer
verified

What is the last of the basic steps of a bankruptcy proceeding?

Correct Answer
verified

A meeting of all creditors listed in the Chapter 7 required schedules for liquidation is referred to as which of the following?

Correct Answer
verified

Which test may allow a court to presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

Correct Answer
verified

Chapter 11 reorganization may be involuntary but not voluntary.

Correct Answer
verified

An individual must complete credit counseling from a nonprofit budget and credit counseling agency to avoid having his bankruptcy petition dismissed.

Correct Answer
verified
True

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged.What type of agreement will Juanita and Broderick make?

Correct Answer
verified

What is the first action the court takes after a petition for bankruptcy is filed?

Correct Answer
verified

What if a creditor continues to engage in legal action against a debtor when an automatic stay is in effect?

Correct Answer
verified

Congress first addressed bankruptcy relief in the ________.

Correct Answer
verified

When the debtor agrees to pay a debt even though it could be discharged,it is referred to as which of the following?

Correct Answer
verified

In bankruptcy,debtors who cannot pay their debts in a timely fashion are referred to as which of the following?

Correct Answer
verified

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

Correct Answer
verified
A

Which of the following are permitted to file under Chapter 11 reorganization?

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

Correct AnswerverifiedShe should be informed that if she has 1...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the ________.

Correct AnswerverifiedShow Answer

How is a determination made regarding the identity of the trustee in a Chapter 7 proceeding?

Correct AnswerverifiedE

Which of the following occurs when a debtor turns over all assets to a trustee?

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

Which of the following is false regarding Chapter 12 of the bankruptcy code?

Correct AnswerverifiedShow Answer

What is the last of the basic steps of a bankruptcy proceeding?

Correct AnswerverifiedShow Answer

A meeting of all creditors listed in the Chapter 7 required schedules for liquidation is referred to as which of the following?

Correct AnswerverifiedShow Answer

Which test may allow a court to presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

Correct AnswerverifiedShow Answer

Chapter 11 reorganization may be involuntary but not voluntary.

Correct AnswerverifiedShow Answer

An individual must complete credit counseling from a nonprofit budget and credit counseling agency to avoid having his bankruptcy petition dismissed.

Correct AnswerverifiedTrue

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged.What type of agreement will Juanita and Broderick make?

Correct AnswerverifiedShow Answer

What is the first action the court takes after a petition for bankruptcy is filed?

Correct AnswerverifiedShow Answer

What if a creditor continues to engage in legal action against a debtor when an automatic stay is in effect?

Correct AnswerverifiedShow Answer

Congress first addressed bankruptcy relief in the ________.

Correct AnswerverifiedShow Answer

When the debtor agrees to pay a debt even though it could be discharged,it is referred to as which of the following?

Correct AnswerverifiedShow Answer

In bankruptcy,debtors who cannot pay their debts in a timely fashion are referred to as which of the following?

Correct AnswerverifiedShow Answer

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

Correct AnswerverifiedA

Which of the following are permitted to file under Chapter 11 reorganization?

Correct AnswerverifiedShow Answer

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She should be informed that if she has 1...
View Answer

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E

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True

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A

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