Question 1

List the set of procedures that must be taken in every bankruptcy case.

Accepted Answer

The set of procedure...

Question 2

Which of the following is considered a debtor eligible for Chapter 7 relief in bankruptcy?

Accepted Answer

A)  Banks
B)  Health maintenance organizations
C)  Railroads
D)  Insurance companies
E)  PartnershipsF) A) and D)
G) A) and C)

Question 3

A moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy is referred to as which of the following?

Accepted Answer

A)  A stop order
B)  A semi-discharge
C)  An automatic stay
D)  A semi-automatic dismissal
E)  There is no such moratorium in a Chapter 7 proceedingF) None of the above
G) B) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

In order of priority,list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Accepted Answer

The first four class...

Question 6

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Accepted Answer

A)  Secured creditors with claims of over $5,000 are not affected by the stay.
B)  The stay affects claims of secured creditors in the same way in which it affects claims of unsecured creditors.
C)  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.
D)  Secured creditors with claims of over $20,000 are not affected by the stay.
E)  Secured creditors with claims of over $15,000 are not affected by the stay.F) A) and B)
G) A) and E)

Question 7

What is the status of the exemptions Liane claimed on the car and jewelry?

Accepted Answer

A)  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.
B)  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.
C)  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.
D)  Both exemptions will likely be granted because their type and value are within allowable federal exemptions.
E)  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.F) B) and E)
G) C) and D)

Question 8

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Accepted Answer

A)  The payment will be considered preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish Jasleen's insolvency at the time of the payment.
B)  Because it was for a consumer good,the payment was not preferential unless the bankruptcy trustee can prove intent to defraud.
C)  The payment was not preferential because it was for a consumer good and was not made within 30 days of the filing of the bankruptcy petition.
D)  The payment will be considered preferential if the trustee is able to establish that the jewelry store received more through the transfer than it would have received through bankruptcy proceedings.
E)  The payment was preferential because it was made within 90 days of the filing of the bankruptcy petition.F) C) and E)
G) A) and D)

Question 10

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Accepted Answer

A)  Any debtor who files under Chapter 13 could also have filed under Chapter 11.
B)  By statute Chapter 13 plans last between 36 and 60 months.
C)  Chapter 13 repayment plans are usually simpler and less expensive than Chapter 11 plans.
D)  Individuals,partnerships,and corporations may file for a Chapter 13 repayment plan.
E)  Chapter 13 permits individuals with regular income to pay their debts to creditors in installment plans under the supervision of the court.F) None of the above
G) B) and D)

Question 12

Legal actions against a debtor can continue after a bankruptcy petition is filed.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Accepted Answer

A)  An approval order
B)  An order of relief
C)  A documentation order
D)  A stay enforcement order
E)  A liquidation orderF) A) and B)
G) B) and E)

Question 14

[Friends and Family] Jasleen was very close to her family and friends.She also liked to spend money,and had a large amount of consumer debt for items such as jewelry,clothing,a personal watercraft,and a new car.Jasleen was having problems making her credit card payments as they became due,but she wanted to make every effort to pay her debts.She had borrowed money from her mother for some jewelry and repaid that loan on January 1st.She repaid a loan to her business partner on May 15th of the same year.On September 1st of that year,she also repaid a loan to Friendly Jewelry Store because she wanted to remain on good terms with the manager.Unfortunately,Jasleen was simply unable to continue making payments and on November 1st of that year,she filed a voluntary petition for bankruptcy relief under Chapter 7.
-Assuming Jasleen's mother received more than would have been received through bankruptcy proceedings,which of the following is the most likely result of a claim of preferential payment based upon the payment to the mother?

Accepted Answer

A)  The payment was preferential because it was made to a family member and made within two years of the filing of the bankruptcy petition unless Jasleen can establish that she was not insolvent when she made the payment.
B)  The payment was not preferential because it was made over 180 days before the filing of the bankruptcy petition.
C)  The payment was not preferential because it was made over 120 days before the filing of the bankruptcy petition.
D)  The payment was preferential on the basis that it was made to a family member within two years of the filing of the bankruptcy petition only if the trustee is able to demonstrate that Jasleen was insolvent when she made the payment.
E)  The payment was not preferential because it was made over 90 days before the filing of the bankruptcy petition.F) C) and E)
G) B) and E)

Question 15

A[n] ________ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Accepted Answer

A)  Grant of immunity
B)  Release
C)  Abandonment
D)  Discharge
E)  RelinquishmentF) B) and D)
G) A) and C)

Question 16

Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Accepted Answer

A)  If someone else holds the debtor's property,the trustee has the power to require the person to return that properly.
B)  The trustee separates the exempt property from the nonexempt property and sells the nonexempt property.
C)  The trustee takes possession of the debtor's property and has it appraised.
D)  The trustee examines the debtor's records but may not even temporarily take over the debtor's business.
E)  The trustee can initiate collection actions but must also defend against creditor actions.F) D) and E)
G) None of the above

Question 17

After filing a voluntary Chapter 7 bankruptcy petition,assets that a debtor gains are generally not part of the bankruptcy estate unless they fall under an exemption.

Accepted Answer

A) True 
 B)False

Question 18

What if a debtor fails to appear at a creditor's meeting?

Accepted Answer

A)  The meeting will be rescheduled.
B)  Nothing;the meeting is for the creditors.
C)  The debtor loses the chance to determine who will act as trustee.
D)  The court may refuse to grant the bankruptcy.
E)  The debtor is fined $100.00.F) A) and B)
G) A) and E)

Question 19

Which of the following is NOT something a bankruptcy judge can make decisions on?

Accepted Answer

A)  What a debtor's assets are
B)  The administration of bankruptcy proceedings
C)  State law claims.
D)  What assets a debtor can keep
E)  How a debtor's assets are to be soldF) D) and E)
G) C) and D)

Question 20

If an automatic stay is in effect in a Chapter 7 proceeding,which of the following actions may not be taken?

Accepted Answer

A)  Legal actions to collect child support payments are subject to the stay.
B)  Creditors cannot attempt to repossess property during bankruptcy proceedings.
C)  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.
D)  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.
E)  A creditor who received a judgment against a debtor prior to the bankruptcy filing may not act to enforce the judgment.F) A) and B)
G) A) and C)

Exam 32: Bankruptcy and Reorganization

Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Correct Answer
verified

What is the status of the exemptions Liane claimed on the car and jewelry?

Correct Answer
verified

After filing a voluntary Chapter 7 bankruptcy petition,assets that a debtor gains are generally not part of the bankruptcy estate unless they fall under an exemption.

Correct Answer
verified

Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Correct Answer
verified

If an automatic stay is in effect in a Chapter 7 proceeding,which of the following actions may not be taken?

Correct Answer
verified

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Correct Answer
verified

Legal actions against a debtor can continue after a bankruptcy petition is filed.

Correct Answer
verified

In order of priority,list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Correct Answer
verified
The first four class...
View Answer

What if a debtor fails to appear at a creditor's meeting?

Correct Answer
verified

List the set of procedures that must be taken in every bankruptcy case.

Correct Answer
verified
The set of procedure...
View Answer

Correct Answer
verified

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

Correct Answer
verified

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Correct Answer
verified

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Correct Answer
verified

A moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy is referred to as which of the following?

Correct Answer
verified

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Correct Answer
verified

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Correct Answer
verified

Which of the following is considered a debtor eligible for Chapter 7 relief in bankruptcy?

Correct Answer
verified

A[n] ________ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Correct Answer
verified

Which of the following is NOT something a bankruptcy judge can make decisions on?

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Correct AnswerverifiedShow Answer

What is the status of the exemptions Liane claimed on the car and jewelry?

Correct AnswerverifiedShow Answer

After filing a voluntary Chapter 7 bankruptcy petition,assets that a debtor gains are generally not part of the bankruptcy estate unless they fall under an exemption.

Correct AnswerverifiedShow Answer

Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Correct AnswerverifiedShow Answer

If an automatic stay is in effect in a Chapter 7 proceeding,which of the following actions may not be taken?

Correct AnswerverifiedShow Answer

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Correct AnswerverifiedShow Answer

Legal actions against a debtor can continue after a bankruptcy petition is filed.

Correct AnswerverifiedShow Answer

In order of priority,list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Correct AnswerverifiedThe first four class...View AnswerShow Answer

What if a debtor fails to appear at a creditor's meeting?

Correct AnswerverifiedShow Answer

List the set of procedures that must be taken in every bankruptcy case.

Correct AnswerverifiedThe set of procedure...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Correct AnswerverifiedShow Answer

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Correct AnswerverifiedShow Answer

A moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy is referred to as which of the following?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Correct AnswerverifiedShow Answer

Which of the following is considered a debtor eligible for Chapter 7 relief in bankruptcy?

Correct AnswerverifiedShow Answer

A[n] ________ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Correct AnswerverifiedShow Answer

Which of the following is NOT something a bankruptcy judge can make decisions on?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The first four class...
View Answer

Correct Answer
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Correct Answer
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The set of procedure...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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