Question 1

Under the Bankruptcy Code's provisions for proof of claims,a court may not allow any claim that is:

Accepted Answer

A)  unenforceable against the debtor or his property. 
B)  for matured interest. 
C)  for reasonable insider fees. 
D)  unsecured. 
A)  unenforceable against the debtor or his property. 
B)  for matured interest. 
C)  for reasonable insider fees. 
D)  unsecured.

Question 2

In a Chapter 13 proceeding,only the debtor may submit a plan of reorganization.

Accepted Answer

A) True 
 B)False

Question 3

Suzanna,an employee of bankrupt Rodeag Company,would be able to receive her $4,000 in unpaid wages earned within 90 days before ABC's filing of the bankruptcy petition and $2,000 in contributions to her employee benefit plans.

Accepted Answer

A) True 
 B)False

Question 4

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Accepted Answer

A)  Good faith 
B)  Feasibility 
C)  No creditor approval 
D)  Cash payments 
A)  Good faith 
B)  Feasibility 
C)  No creditor approval 
D)  Cash payments

Question 5

Bankruptcy legislation serves a dual purpose.What are these purposes?

Accepted Answer

Bankruptcy legislation serves a dual pur

Question 6

In a Chapter 13 proceeding,the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following claims will be paid first from the debtor's estate in a Chapter 7 bankruptcy?

Accepted Answer

A)  A gap creditor with a claim of $2,000 
B)  A state claiming $5,000 in back taxes 
C)  The trustee's expenses of $3,000 
D)  Employees claiming unpaid wages of $4,000 for wages earned within 120 days of the bankruptcy filing 
A)  A gap creditor with a claim of $2,000 
B)  A state claiming $5,000 in back taxes 
C)  The trustee's expenses of $3,000 
D)  Employees claiming unpaid wages of $4,000 for wages earned within 120 days of the bankruptcy filing

Question 8

Under Chapter ____,the bankruptcy estate includes wages earned after commencement of the case.

Accepted Answer

A)  7 
B)  11 
C)  13 
D)  15 
A)  7 
B)  11 
C)  13 
D)  15

Question 9

A debtor has the option of using either federal or state exemptions;however,the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets at any time before filing the bankruptcy petition.

Accepted Answer

A) True 
 B)False

Question 10

A Chapter 13 plan of reorganization may include all but which one of the following?

Accepted Answer

A)  Priority debts must be paid in full unless the debtor waives that right. 
B)  The trustee must control future wages. 
C)  Assets must be liquidated. 
D)  The rights of secured and unsecured creditors may be modified. 
A)  Priority debts must be paid in full unless the debtor waives that right. 
B)  The trustee must control future wages. 
C)  Assets must be liquidated. 
D)  The rights of secured and unsecured creditors may be modified.

Question 11

Garnishment cannot be ordered prior to a judgment's being entered.

Accepted Answer

A) True 
 B)False

Question 12

Able has an allowed claim of $5,000 against the estate of Wallace and has a security interest in his art collection in the amount of $3,000 of the $5,000 claim.Able:

Accepted Answer

A)  will recover nothing in the bankruptcy proceeding. 
B)  will recover $5,000 in the bankruptcy proceeding. 
C)  has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D)  has a secured claim in the amount of $5,000. 
A)  will recover nothing in the bankruptcy proceeding. 
B)  will recover $5,000 in the bankruptcy proceeding. 
C)  has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D)  has a secured claim in the amount of $5,000.

Question 13

Under Chapter ____,certain debts of individuals are not dischargeable despite the debtor's good faith.

Accepted Answer

A)  7 
B)  11 
C)  13 
D)  15 
A)  7 
B)  11 
C)  13 
D)  15

Question 14

A fraudulent transfer made within two years prior to filing a petition for bankruptcy can be avoided by the trustee.

Accepted Answer

A) True 
 B)False

Question 15

Donner has a $10,000 judgment against him for a debt owed to a creditor.If Donner files for bankruptcy and receives a discharge from the bankruptcy court,he will no longer be obligated to pay the judgment.

Accepted Answer

A) True 
 B)False

Question 16

The debtor is presumed to have been insolvent on and during what period of time immediately preceding the date on which the petition was filed?

Accepted Answer

A)  One year 
B)  Sixty days 
C)  Ninety days 
D)  Six months 
A)  One year 
B)  Sixty days 
C)  Ninety days 
D)  Six months

Question 17

Confirmation of a plan for reorganization under Chapter 13 may be given only if:

Accepted Answer

A)  the plan complies with applicable law and is given in good faith. 
B)  the plan provides for payments longer than three years. 
C)  the debtor remains in possession of the estate. 
D)  all of the creditors agree to accept it. 
A)  the plan complies with applicable law and is given in good faith. 
B)  the plan provides for payments longer than three years. 
C)  the debtor remains in possession of the estate. 
D)  all of the creditors agree to accept it.

Question 18

Once a Chapter 13 plan of reorganization is confirmed,the provisions are binding on the debtor and all of his creditors.

Accepted Answer

A) True 
 B)False

Question 19

Baker goes into bankruptcy owing $5,000 as wages to his employees.There is enough in his estate to pay all costs of administration and enough to pay his employees,but if the employees are paid,there will be nothing left for the general creditors.Which of the following is NOT true under the above facts?

Accepted Answer

A)  The Bankruptcy Code provides for priority of wages owed to employees. 
B)  Secured creditors will be paid to the extent of their security interest before the employees will be paid. 
C)  The general creditors will not be paid. 
D)  The general creditors can be paid before the employees if they file a claim with the court. 
A)  The Bankruptcy Code provides for priority of wages owed to employees. 
B)  Secured creditors will be paid to the extent of their security interest before the employees will be paid. 
C)  The general creditors will not be paid. 
D)  The general creditors can be paid before the employees if they file a claim with the court.

Question 20

One type of fraudulent transfer consists of the:

Accepted Answer

A)  distribution of the debtor's property among creditors. 
B)  debtor's transferring of property with actual intent to hinder her creditors. 
C)  avoidance of statutory liens when debtor becomes insolvent. 
D)  discharge of debts of unsecured tardy creditors. 
A)  distribution of the debtor's property among creditors. 
B)  debtor's transferring of property with actual intent to hinder her creditors. 
C)  avoidance of statutory liens when debtor becomes insolvent. 
D)  discharge of debts of unsecured tardy creditors.

Exam 38: Bankruptcy

Under the Bankruptcy Code's provisions for proof of claims,a court may not allow any claim that is:

In a Chapter 13 proceeding,only the debtor may submit a plan of reorganization.

Suzanna,an employee of bankrupt Rodeag Company,would be able to receive her $4,000 in unpaid wages earned within 90 days before ABC's filing of the bankruptcy petition and $2,000 in contributions to her employee benefit plans.

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Bankruptcy legislation serves a dual purpose.What are these purposes?

In a Chapter 13 proceeding,the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

Which of the following claims will be paid first from the debtor's estate in a Chapter 7 bankruptcy?

Under Chapter ____,the bankruptcy estate includes wages earned after commencement of the case.

A debtor has the option of using either federal or state exemptions;however,the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets at any time before filing the bankruptcy petition.

A Chapter 13 plan of reorganization may include all but which one of the following?

Garnishment cannot be ordered prior to a judgment's being entered.

Able has an allowed claim of $5,000 against the estate of Wallace and has a security interest in his art collection in the amount of $3,000 of the $5,000 claim.Able:

Under Chapter ____,certain debts of individuals are not dischargeable despite the debtor's good faith.

A fraudulent transfer made within two years prior to filing a petition for bankruptcy can be avoided by the trustee.

Donner has a $10,000 judgment against him for a debt owed to a creditor.If Donner files for bankruptcy and receives a discharge from the bankruptcy court,he will no longer be obligated to pay the judgment.

The debtor is presumed to have been insolvent on and during what period of time immediately preceding the date on which the petition was filed?

Confirmation of a plan for reorganization under Chapter 13 may be given only if:

Once a Chapter 13 plan of reorganization is confirmed,the provisions are binding on the debtor and all of his creditors.

One type of fraudulent transfer consists of the:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management