Question 1

What must a debtor be able to demonstrate to file Chapter 7 bankruptcy?

Accepted Answer

A)  That he is unable to pay.
B)  That he faces undue hardship
C)  That he is insolvent.
D)  That he owes money to someone
E)  That debts were acquired due to unforeseen circumstancesF) C) and E)
G) None of the above

Question 2

Which of the following does NOT fall under an exception to the automatic stay?

Accepted Answer

A)  Legal actions to collect alimony payments.
B)  The debtor was a debtor in a bankruptcy case dismissed within a year of the current bankruptcy case filing.
C)  Creditors who are involved in repossession proceedings.
D)  Secured creditors who do not have adequate protection under the stay.
E)  Legal actions to determine paternity or collect child support.F) C) and D)
G) D) and E)

Question 3

What is the maximum period of a Chapter 13 repayment plan that does not require special court approval?

Accepted Answer

A)  Four years.
B)  No limit.
C)  One year
D)  Two years.
E)  Three years.F) All of the above
G) C) and E)

Question 4

Which of the following is false regarding bankruptcy cases?

Accepted Answer

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

Question 5

Which of the following terms is sometimes referred to as straight bankruptcy?

Accepted Answer

A)  Acknowledgment
B)  Liquidation
C)  Reorganization
D)  Avoidance
E)  ReformationF) C) and D)
G) A) and D)

Question 6

[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.
-Which of the following is true regarding the involuntary petition for bankruptcy filed by some of Isabel's creditors?

Accepted Answer

A)  Involuntary petitions are not allowed under Chapter 7.
B)  The petition was properly filed because 3 or more creditors with unsecured claims signed the petition for involuntary bankruptcy.
C)  The petition was properly filed because only 2 or more creditors with secured or unsecured claims must sign a petition for involuntary bankruptcy.
D)  Only 3 creditors may file an involuntary petition,but their aggregate claims must be $20,100;therefore,the petition will be dismissed in Isabel's case.
E)  At least 5 creditors must file in order for an involuntary petition to be accepted;therefore,the involuntary petition will be dismissed in Isabel's case.F) A) and B)
G) A) and C)

Question 7

Which of the following is required to file Chapter 12 bankruptcy?

Accepted Answer

A)  At least half of the debt must be farm related?
B)  At least 90 percent of the debt must be farm related
C)  Total debt must be under $1 million
D)  The farmer must be completely unable to pay any money towards creditors
E)  The farmer must be 100 percent insolvent.F) A) and C)
G) B) and D)

Question 8

Which of the following is the first step in bankruptcy proceedings?

Accepted Answer

A)  Filing of a petition for bankruptcy
B)  Debts are discharged
C)  A determination on whether an order of relief should be granted
D)  Creditors meet with the debtor
E)  The granting of an automatic stayF) B) and D)
G) B) and E)

Question 9

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another is called which of the following?

Accepted Answer

A)  An unapproved payment
B)  An unendorsed payment
C)  An unfair payment
D)  An unequal payment
E)  A preferential paymentF) B) and D)
G) C) and D)

Question 10

Which of the following is NOT part of the basic set of procedures for bankruptcy cases?

Accepted Answer

A)  The creditors meet with the debtor
B)  Discharging debts
C)  The petition for the prompt repayment of secured creditor claims
D)  A determination on whether an order of relief should be granted
E)  The granting of an automatic stayF) None of the above
G) D) and E)

Question 11

Who organizes the creditors' meeting in a Chapter 7 proceeding?

Accepted Answer

A)  The trustee
B)  The interim trustee
C)  At least three of the creditors
D)  The district court judge
E)  The bankruptcy judgeF) B) and E)
G) None of the above

Question 12

In Margaret Kawaauhau v.Paul W.Geiger,the text case in which the plaintiff claimed that the defending doctor,who had no malpractice insurance,could not discharge in bankruptcy a judgment for malpractice on the basis that he deliberately chose less effective treatment to cut costs while knowing that he was providing substandard care resulted in which of the following?

Accepted Answer

A)  That the defendant could not discharge the judgment because he was negligent.
B)  That the defendant could discharge the judgment because he did not intend to cause injury.
C)  That the defendant could not discharge the judgment because he was reckless.
D)  That as a matter of public policy,the defendant could not discharge the judgment because he failed to carry malpractice insurance.
E)  That the defendant could discharge the judgment because as a matter of public policy,all malpractice judgments may be discharged.F) All of the above
G) A) and B)

Question 13

What are the two general goals of bankruptcy laws as set forth in the text?

Accepted Answer

First,bankruptcy laws provide protection...

Question 14

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

Question 15

What happens when an order of relief is granted?

Accepted Answer

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

Question 16

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

An individual who takes over administration of the debtor's estate is referred to as which of the following?

Accepted Answer

A)  Administrator
B)  Trustee
C)  Aligner
D)  Organizer
E)  ReformerF) C) and E)
G) A) and B)

Question 19

Which of the following is NOT required for a reaffirmation of debt?

Accepted Answer

A)  The agreement should contain a statement notifying the creditor that the law does not require the agreement.
B)  The reaffirmation agreement is made before the debt is discharged
C)  The debtor must be able to cancel the agreement
D)  The agreement must contain explicit information regarding the time period in which the debtor can cancel the agreement.
E)  The reaffirmation agreement is made after the debt is dischargedF) None of the above
G) A) and D)

Question 20

Why is repayment under Chapter 13 distinct from other types of relief?

Accepted Answer

A)  Because repayment plans are usually simpler and less expensive than Chapter 11 plans.
B)  Because Chapter 13 is an option only for municipalities,not individuals and businesses.
C)  Because Chapter 13 is the only type of relief available to debtors who are not insolvent.
D)  Because repayment is voluntary only.A debtor cannot be forced into a repayment plan.
E)  Because debts are discharged in Chapter 13 but not in other Chapters of bankruptcy.F) D) and E)
G) B) and E)

Exam 32: Bankruptcy and Reorganization

Which of the following is NOT part of the basic set of procedures for bankruptcy cases?

Correct Answer
verified

What must a debtor be able to demonstrate to file Chapter 7 bankruptcy?

Correct Answer
verified

Which of the following is the first step in bankruptcy proceedings?

Correct Answer
verified

Which of the following does NOT fall under an exception to the automatic stay?

Correct Answer
verified

Which of the following is required to file Chapter 12 bankruptcy?

Correct Answer
verified

What are the two general goals of bankruptcy laws as set forth in the text?

Correct Answer
verified
First,bankruptcy laws provide protection...
View Answer

An individual who takes over administration of the debtor's estate is referred to as which of the following?

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

Correct Answer
verified

Correct Answer
verified

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another is called which of the following?

Correct Answer
verified

Which of the following is NOT required for a reaffirmation of debt?

Correct Answer
verified

Which of the following is false regarding bankruptcy cases?

Correct Answer
verified

Who organizes the creditors' meeting in a Chapter 7 proceeding?

Correct Answer
verified

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Correct Answer
verified

What happens when an order of relief is granted?

Correct Answer
verified

Why is repayment under Chapter 13 distinct from other types of relief?

Correct Answer
verified

Which of the following terms is sometimes referred to as straight bankruptcy?

Correct Answer
verified

Assuming that Isabel does not object to the bankruptcy proceeding,what is the next step that should occur?

Correct Answer
verified

What is the maximum period of a Chapter 13 repayment plan that does not require special court approval?

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

Which of the following is NOT part of the basic set of procedures for bankruptcy cases?

Correct AnswerverifiedShow Answer

What must a debtor be able to demonstrate to file Chapter 7 bankruptcy?

Correct AnswerverifiedShow Answer

Which of the following is the first step in bankruptcy proceedings?

Correct AnswerverifiedShow Answer

Which of the following does NOT fall under an exception to the automatic stay?

Correct AnswerverifiedShow Answer

Which of the following is required to file Chapter 12 bankruptcy?

Correct AnswerverifiedShow Answer

What are the two general goals of bankruptcy laws as set forth in the text?

Correct AnswerverifiedFirst,bankruptcy laws provide protection...View AnswerShow Answer

An individual who takes over administration of the debtor's estate is referred to as which of the following?

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another is called which of the following?

Correct AnswerverifiedShow Answer

Which of the following is NOT required for a reaffirmation of debt?

Correct AnswerverifiedShow Answer

Which of the following is false regarding bankruptcy cases?

Correct AnswerverifiedShow Answer

Who organizes the creditors' meeting in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Correct AnswerverifiedShow Answer

What happens when an order of relief is granted?

Correct AnswerverifiedShow Answer

Why is repayment under Chapter 13 distinct from other types of relief?

Correct AnswerverifiedShow Answer

Which of the following terms is sometimes referred to as straight bankruptcy?

Correct AnswerverifiedShow Answer

Assuming that Isabel does not object to the bankruptcy proceeding,what is the next step that should occur?

Correct AnswerverifiedShow Answer

What is the maximum period of a Chapter 13 repayment plan that does not require special court approval?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
First,bankruptcy laws provide protection...
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
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