Question 1

_____ refers to a situation wherein the court forces dissenting creditors to accept a reorganization plan when the court finds that it is fair and equitable.

Accepted Answer

A)   Cram down
B)   Make one whole
C)   Divestiture
D)   Restitution A

Question 2

What Chapter of the bankruptcy code is liquidation for businesses?

Accepted Answer

A)   Chapter 12
B)   Chapter 11
C)   Chapter 15
D)   Chapter 7

Question 3

Creditors wishing to obtain funds from a bankruptcy must typically file proof of a claim with the estate within a certain time.

Accepted Answer

A) True 
 B)False

Question 4

An involuntary bankruptcy petition can be filed against:

Accepted Answer

A)   banking corporations.
B)   multinational companies.
C)   agricultural corporations.
D)   nonprofit organizations.

Question 5

Straight bankruptcy or liquidation is covered under Chapter 7 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 6

In order to safeguard the debtor from reaffirmation agreements the Court:

Accepted Answer

A)   allows the debtor to rescind the reaffirmation agreement within a period of 60 days.
B)   is empowered to declare all reaffirmation agreements as void.
C)   may order the creditor to demand only 50 percent of the original debt amount.
D)   may allow a reaffirmation agreement only if the debtor is represented by an attorney.

Question 7

According to the 2005 revisions of the Bankruptcy Code:

Accepted Answer

A)   any eviction proceedings in which the landlord obtained a judgment of possession prior to the filing of the bankruptcy petition can be continued.
B)   any eviction proceedings in which the landlord obtained a judgment of abandonment prior to the filing of the bankruptcy petition can be continued.
C)   any eviction proceedings in which the landlord obtained a judgment of defeasance prior to the filing of the bankruptcy petition can be continued.
D)   any eviction proceedings in which the landlord obtained a judgment of vicarious liability prior to the filing of the bankruptcy petition can be continued.

Question 8

Under the Bankruptcy Code a judge is allowed to reduce the debt of an unsecured consumer creditor by what percentage?

Accepted Answer

A)   20%
B)   30%
C)   50%
D)   75%

Question 9

Which of the following fits within one of the exceptions to the Bankruptcy Act's preference provision?

Accepted Answer

A)   A perfected Article 9 security interest.
B)   A transfer to an insider of the debtor.
C)   A transfer made in the ordinary course of the debtor's business.
D)   A consumer's transfer of less than $2.000 to a creditor who has sold her consumer goods. C

Question 10

Unless state law says otherwise,a bankrupt party may choose either the state's exemptions or the federal exemptions when deciding which property to exempt from bankruptcy.

Accepted Answer

A) True 
 B)False  True

Question 11

Joe goes into bankruptcy under Chapter 7 and in due course all of his debts are discharged thereby.After the discharge is granted,Joe signs an agreement promising to repay one of those discharged debts.Joe's attorney certifies that Joe is able to pay the debt.Is Joe bound to pay this debt?

Accepted Answer

Joe is not bound to pay the discharged d...

Question 12

An absolute $136,875 homestead cap applies if:

Accepted Answer

A)   the debtor's aggregate interest exceeds $1,450 in value in jewellery held primarily for the personal,family,or household use of the debtor.
B)   retirement funds that are in a fund or account are exempt from taxation under the Internal Revenue Code.
C)   the debtor's interest exceeds $136,875 in value in real or personal property.
D)   the bankruptcy court determines that the debtor has been convicted of a felony.

Question 13

Ajax has accumulated debts which the company is unable to pay.The company has four creditors who hold security provided by Ajax and are valued as follows: Ace ($6,000),Crest ($3,000),Maxton ($8,000)and Interon ($9,000).Which of these creditors will be able to successfully file a petition for involuntary bankruptcy for Ajax?

Accepted Answer

As per the amendments carried out by the...

Question 14

To which of the following is Chapter 11 not available?

Accepted Answer

A)   Manufacturing corporations
B)   A sole proprietorship that sells used cars
C)   A bank
D)   A natural person

Question 15

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

Accepted Answer

A)   Transfers that are intended by the debtor and creditor to be a contemporaneous exchange for new value.
B)   Transfers that led to the creation of a security interest in new property where new value was given by the secured party to enable the debtor to obtain the property.
C)   Transfers made in payment of a debt incurred in the ordinary course of the business of the debtor and the transferee.
D)   Transfers to or for the benefit of an insider under an employment contract and not in the ordinary course of business.

Question 16

Dave,who is in financial trouble,has ten creditors.An involuntary bankruptcy petition against Dave requires that three of these creditors sign.

Accepted Answer

A) True 
 B)False

Question 17

A plan is considered to be fair and equitable to a class of impaired claimants with unsecured claims if the reorganization plan:

Accepted Answer

A)   provides for the sale of any property subject to liens securing such claims free and clear of such liens with the liens to attach to the proceeds of the sale.
B)   provides for the realization by the holders of the "indubitable equivalent" of such claims.
C)   provides that each holder of a claim will receive or retain on account of the claim property of a value equal to the allowed amount of such claim.
D)   provides the holder of any interest that is junior to the interests of such class will not receive any property on account of such junior claim.

Question 18

One of the kinds of property that is exempt from bankruptcy under Chapter 7's federal exemptions is one's interest (not to exceed $3,675 in value)in one motor vehicle.

Accepted Answer

A) True 
 B)False

Question 19

Chapter 14 of the Bankruptcy Code allows for special protections for family farmers.

Accepted Answer

A) True 
 B)False

Question 20

Under Chapter 7,a debtor is denied discharge of all debts when:

Accepted Answer

A)   the debtor has transferred property in order to defraud creditors.
B)   the debtor has unpaid tax liabilities.
C)   the debtor has made a preferential transfer to a creditor.
D)   the debtor has made a fraudulent transfer.

Exam 30: Bankruptcy

_____ refers to a situation wherein the court forces dissenting creditors to accept a reorganization plan when the court finds that it is fair and equitable.

Correct Answer
verified
A

What Chapter of the bankruptcy code is liquidation for businesses?

Correct Answer
verified

Creditors wishing to obtain funds from a bankruptcy must typically file proof of a claim with the estate within a certain time.

Correct Answer
verified

An involuntary bankruptcy petition can be filed against:

Correct Answer
verified

Straight bankruptcy or liquidation is covered under Chapter 7 of the Bankruptcy Code.

Correct Answer
verified

In order to safeguard the debtor from reaffirmation agreements the Court:

Correct Answer
verified

According to the 2005 revisions of the Bankruptcy Code:

Correct Answer
verified

Under the Bankruptcy Code a judge is allowed to reduce the debt of an unsecured consumer creditor by what percentage?

Correct Answer
verified

Which of the following fits within one of the exceptions to the Bankruptcy Act's preference provision?

Correct Answer
verified
C

Unless state law says otherwise,a bankrupt party may choose either the state's exemptions or the federal exemptions when deciding which property to exempt from bankruptcy.

Correct Answer
verified
True

Joe goes into bankruptcy under Chapter 7 and in due course all of his debts are discharged thereby.After the discharge is granted,Joe signs an agreement promising to repay one of those discharged debts.Joe's attorney certifies that Joe is able to pay the debt.Is Joe bound to pay this debt?

Correct Answer
verified
Joe is not bound to pay the discharged d...
View Answer

An absolute $136,875 homestead cap applies if:

Correct Answer
verified

Correct Answer
verified
As per the amendments carried out by the...
View Answer

To which of the following is Chapter 11 not available?

Correct Answer
verified

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

Correct Answer
verified

Dave,who is in financial trouble,has ten creditors.An involuntary bankruptcy petition against Dave requires that three of these creditors sign.

Correct Answer
verified

A plan is considered to be fair and equitable to a class of impaired claimants with unsecured claims if the reorganization plan:

Correct Answer
verified

One of the kinds of property that is exempt from bankruptcy under Chapter 7's federal exemptions is one's interest (not to exceed $3,675 in value)in one motor vehicle.

Correct Answer
verified

Chapter 14 of the Bankruptcy Code allows for special protections for family farmers.

Correct Answer
verified

Under Chapter 7,a debtor is denied discharge of all debts when:

Correct Answer
verified

Exam 30: Bankruptcy

_____ refers to a situation wherein the court forces dissenting creditors to accept a reorganization plan when the court finds that it is fair and equitable.

Correct AnswerverifiedA

What Chapter of the bankruptcy code is liquidation for businesses?

Correct AnswerverifiedShow Answer

Creditors wishing to obtain funds from a bankruptcy must typically file proof of a claim with the estate within a certain time.

Correct AnswerverifiedShow Answer

An involuntary bankruptcy petition can be filed against:

Correct AnswerverifiedShow Answer

Straight bankruptcy or liquidation is covered under Chapter 7 of the Bankruptcy Code.

Correct AnswerverifiedShow Answer

In order to safeguard the debtor from reaffirmation agreements the Court:

Correct AnswerverifiedShow Answer

According to the 2005 revisions of the Bankruptcy Code:

Correct AnswerverifiedShow Answer

Under the Bankruptcy Code a judge is allowed to reduce the debt of an unsecured consumer creditor by what percentage?

Correct AnswerverifiedShow Answer

Which of the following fits within one of the exceptions to the Bankruptcy Act's preference provision?

Correct AnswerverifiedC

Unless state law says otherwise,a bankrupt party may choose either the state's exemptions or the federal exemptions when deciding which property to exempt from bankruptcy.

Correct AnswerverifiedTrue

Joe goes into bankruptcy under Chapter 7 and in due course all of his debts are discharged thereby.After the discharge is granted,Joe signs an agreement promising to repay one of those discharged debts.Joe's attorney certifies that Joe is able to pay the debt.Is Joe bound to pay this debt?

Correct AnswerverifiedJoe is not bound to pay the discharged d...View AnswerShow Answer

An absolute $136,875 homestead cap applies if:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAs per the amendments carried out by the...View AnswerShow Answer

To which of the following is Chapter 11 not available?

Correct AnswerverifiedShow Answer

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

Correct AnswerverifiedShow Answer

Dave,who is in financial trouble,has ten creditors.An involuntary bankruptcy petition against Dave requires that three of these creditors sign.

Correct AnswerverifiedShow Answer

A plan is considered to be fair and equitable to a class of impaired claimants with unsecured claims if the reorganization plan:

Correct AnswerverifiedShow Answer

One of the kinds of property that is exempt from bankruptcy under Chapter 7's federal exemptions is one's interest (not to exceed $3,675 in value)in one motor vehicle.

Correct AnswerverifiedShow Answer

Chapter 14 of the Bankruptcy Code allows for special protections for family farmers.

Correct AnswerverifiedShow Answer

Under Chapter 7,a debtor is denied discharge of all debts when:

Correct AnswerverifiedShow Answer

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
True

Correct Answer
verified
Joe is not bound to pay the discharged d...
View Answer

Correct Answer
verified

Correct Answer
verified
As per the amendments carried out by the...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified