Question 1

One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets.

Accepted Answer

A) True 
 B)False

Question 2

Leo files a petition in bankruptcy. Among his debts are unpaid taxes, fines owed to the government, student loans owed to Metro University, and support owed to his ex-wife Nadia. Most likely to be discharged are​

Accepted Answer

A)   back taxes accrued within the previous three years.​
B)   ​fines outstanding less than eight years.
C)   ​student loans whose payment would impose undue hardship.
D)   ​spousal-support debts unpaid for more than eighteen months.

Question 3

Matt files a petition for a discharge in bankruptcy. His failure to appear at a meeting of the creditors listed in his schedules may result in him being​

Accepted Answer

A)   ​denied a discharge of bankruptcy.
B)   ​fined.
C)   ​held in contempt.
D)   ​imprisoned.

Question 4

Teri files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within​

Accepted Answer

A)   ​fifteen days of the order for relief.
B)   ​thirty days of the filing of the petition.
C)   ​sixty days of the automatic stay.
D)   ​ninety days of the creditors' meeting.

Question 5

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

Accepted Answer

A)   ​a liquidation.
B)   ​a reorganization.
C)   ​a repayment plan.
D)   ​a straight bankruptcy plan.

Question 6

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain​

Accepted Answer

A)   ​a plan to turn over its future income to the trustee.
B)   ​a certificate proving attendance at a credit-counseling briefing.
C)   ​a provision of adequate means for the plan's execution.
D)   ​a statement of preference for one creditor over another.

Question 7

If a debtor's income is below the median income, there is no presumption of bankruptcy abuse.​

Accepted Answer

A) True 
 B)False

Question 8

Larry has fifteen creditors. To force Larry into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least​

Accepted Answer

A)   ​$500.
B)   ​$15,325.
C)   ​$100,000.
D)   ​$500,000.

Question 9

Ken files a petition for bankruptcy. Ken must include with the petition​

Accepted Answer

A)   ​a plan to turn over his future income to the trustee.
B)   ​a certificate proving attendance at a credit-counseling briefing.
C)   ​a provision of adequate means for the petition's execution.
D)   ​a statement of preference for one creditor over another.

Question 10

Milos files a petition in bankruptcy. His dischargeable debts include​

Accepted Answer

A)   domestic-support obligations.​
B)   ​student loans unless the lender would suffer undue hardship.
C)   ​court costs, trustee fees, and attorney's fees associated with the bankruptcy.
D)   ​unsecured credit-card debt.

Question 11

Once a discharge is granted, it may not be revoked, even if, for example, a debtor concealed property to defraud a creditor.

Accepted Answer

A) True 
 B)False

Question 12

Ed files a petition in bankruptcy. The initial proceeding on this petition will be in​

Accepted Answer

A)   ​a federal bankruptcy court.
B)   ​a state bankruptcy court.
C)   ​the highest court in the state in which the debtor is located.
D)   ​the United States Supreme Court.

Question 13

On the entry of an order for relief in a reorganization case, the creditors generally take over the operation of the debtor's business.

Accepted Answer

A) True 
 B)False

Question 14

For individual debtors, the plan in a reorganization case must be completed before a discharge will be granted.

Accepted Answer

A) True 
 B)False

Question 15

Daniel is a trustee for a federal bankruptcy court. Daniel's duties include​

Accepted Answer

A)   ​collecting the debtor's available estate.
B)   ​establishing priority for the payment of unsecured creditors.
C)   ​operating a debtor's business to obtain maximum profit for creditors.
D)   ​submitting to an examination under oath by the creditors.

Question 16

The same principles that govern the filing of a liquidation petition apply to reorganization proceedings.

Accepted Answer

A) True 
 B)False

Question 17

A debtor must be insolvent to file for bankruptcy relief.

Accepted Answer

A) True 
 B)False

Question 18

Rob's creditors try to force him into involuntary bankruptcy. The creditors will be unsuccessful if Rob​

Accepted Answer

A)   ​owns a business that employs fewer than ten people.
B)   ​is a farmer.
C)   ​has a medical condition.
D)   ​has to pay child support.

Question 19

Nora files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Nora's creditors. O'Brien is​

Accepted Answer

A)   ​a preferred creditor.
B)   ​a bankruptcy court judge.
C)   ​a bankruptcy trustee.
D)   ​a DIP (debtor in possession) .

Question 20

Unsecured creditors do not have a vote to confirm aChapter 13 plan.

Accepted Answer

A) True 
 B)False

Exam 31: Bankruptcy Law

For individual debtors, the plan in a reorganization case must be completed before a discharge will be granted.

Correct AnswerverifiedShow Answer

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

Correct AnswerverifiedShow Answer

Once a discharge is granted, it may not be revoked, even if, for example, a debtor concealed property to defraud a creditor.

Correct AnswerverifiedShow Answer

Ed files a petition in bankruptcy. The initial proceeding on this petition will be in​

Correct AnswerverifiedShow Answer

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain​

Correct AnswerverifiedShow Answer

On the entry of an order for relief in a reorganization case, the creditors generally take over the operation of the debtor's business.

Correct AnswerverifiedShow Answer

Nora files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Nora's creditors. O'Brien is​

Correct AnswerverifiedShow Answer

If a debtor's income is below the median income, there is no presumption of bankruptcy abuse.​

Correct AnswerverifiedShow Answer

Rob's creditors try to force him into involuntary bankruptcy. The creditors will be unsuccessful if Rob​

Correct AnswerverifiedShow Answer

Milos files a petition in bankruptcy. His dischargeable debts include​

Correct AnswerverifiedShow Answer

Unsecured creditors do not have a vote to confirm aChapter 13 plan.

Correct AnswerverifiedShow Answer

One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets.

Correct AnswerverifiedShow Answer

A debtor must be insolvent to file for bankruptcy relief.

Correct AnswerverifiedShow Answer

Teri files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within​

Correct AnswerverifiedShow Answer

Ken files a petition for bankruptcy. Ken must include with the petition​

Correct AnswerverifiedShow Answer

Matt files a petition for a discharge in bankruptcy. His failure to appear at a meeting of the creditors listed in his schedules may result in him being​

Correct AnswerverifiedShow Answer

Daniel is a trustee for a federal bankruptcy court. Daniel's duties include​

Correct AnswerverifiedShow Answer

Larry has fifteen creditors. To force Larry into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least​

Correct AnswerverifiedShow Answer

The same principles that govern the filing of a liquidation petition apply to reorganization proceedings.

Correct AnswerverifiedShow Answer

Leo files a petition in bankruptcy. Among his debts are unpaid taxes, fines owed to the government, student loans owed to Metro University, and support owed to his ex-wife Nadia. Most likely to be discharged are​

Correct AnswerverifiedShow Answer

Correct Answer
verified

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through

Correct Answer
verified

Correct Answer
verified

Ed files a petition in bankruptcy. The initial proceeding on this petition will be in

Correct Answer
verified

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain

Correct Answer
verified

Correct Answer
verified

Nora files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Nora's creditors. O'Brien is

Correct Answer
verified

If a debtor's income is below the median income, there is no presumption of bankruptcy abuse.

Correct Answer
verified

Rob's creditors try to force him into involuntary bankruptcy. The creditors will be unsuccessful if Rob

Correct Answer
verified

Milos files a petition in bankruptcy. His dischargeable debts include

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Teri files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within

Correct Answer
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Ken files a petition for bankruptcy. Ken must include with the petition

Correct Answer
verified

Matt files a petition for a discharge in bankruptcy. His failure to appear at a meeting of the creditors listed in his schedules may result in him being

Correct Answer
verified

Daniel is a trustee for a federal bankruptcy court. Daniel's duties include

Correct Answer
verified

Larry has fifteen creditors. To force Larry into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least

Correct Answer
verified

Correct Answer
verified

Leo files a petition in bankruptcy. Among his debts are unpaid taxes, fines owed to the government, student loans owed to Metro University, and support owed to his ex-wife Nadia. Most likely to be discharged are

Correct Answer
verified