Exam 38: Bankruptcy

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1)an automobile valued at $1,000; (2)a homestead valued at $75,000,on which First Bank holds a mortgage of $50,000; (3)personal jewelry valued at $1,100;and (4)monthly disability payments of $1,000.Assuming Edith elects to use the exemptions listed in the Bankruptcy Code,what property may Edith keep?

Federal district courts may hear all matters related to a bankruptcy,even if these matters are not normally permitted to be brought in federal court.

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Which of the following debts would be discharged in bankruptcy?

Most student loans cannot be discharged under Chapter 13.

A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors.

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some,but not all other creditors,the claims of the same rank share the money on a pro rata basis.

An assignment for the benefit of creditors requires the creditors' consent

An involuntary petition for bankruptcy can be filed with respect to a:

In an assignment for the benefit of creditors,if each creditor is paid an equal share of his original obligation,the debtor is then discharged from any further obligation to the creditor.

Which of the following would be a voidable transfer if made within 90 days of bankruptcy?

Chapter 3 of the Bankruptcy Code deals with:

A plan of reorganization under Chapter 13 will be confirmed when:

A trustee in bankruptcy may sell the property of the debtor's estate.

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

A debtor who files for bankruptcy can keep up to $1,600 in jewelry and all social security,veteran's,and disability benefits under the exemptions found in the Bankruptcy Code.