Question 1

A Chapter 13 proceeding is more expensive and complicated than a Chapter 11 or Chapter 7 proceeding.

Accepted Answer

A) True 
 B)False

Question 2

Any person-including individuals, but not partnerships or corporations-may be a debtor under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 3

In a Chapter 7 proceeding, if the value of the debtor's estate does not provide sufficient cash to pay all the creditors, it is given back to the debtor.

Accepted Answer

A) True 
 B)False

Question 4

Eligible for relief on a petition in bankruptcy under Chapter 11 is

Accepted Answer

A)  any debtor who is eligible under Chapter 7, and railroads. 
B)  an individual, not a partnership or a corporation, with regular income and debts of less than a certain amount. 
C)  any "person" except railroads and certain financial institutions. 
D)  any party who is not eligible under a different chapter of the Code. 
A)  any debtor who is eligible under Chapter 7, and railroads. 
B)  an individual, not a partnership or a corporation, with regular income and debts of less than a certain amount. 
C)  any "person" except railroads and certain financial institutions. 
D)  any party who is not eligible under a different chapter of the Code.

Question 5

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Accepted Answer

A) True 
 B)False

Question 6

To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

Accepted Answer

A) True 
 B)False

Question 7

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter 7 petition or explain why such a motion would not be appropriate.

Accepted Answer

A) True 
 B)False

Question 8

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Accepted Answer

A)  puts into place an automatic stay. 
B)  discharges the debtor's obligations. 
C)  dismisses the petition. 
D)  distributes the debtor's assets to his or her creditors. 
A)  puts into place an automatic stay. 
B)  discharges the debtor's obligations. 
C)  dismisses the petition. 
D)  distributes the debtor's assets to his or her creditors.

Question 9

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Accepted Answer

A)  permits creditors to force a debtor into involuntary bankruptcy. 
B)  allows a debtor to retain possession of his or her assets. 
C)  is more expensive and more complicated. 
D)  permits any interested party to file a repayment plan. 
A)  permits creditors to force a debtor into involuntary bankruptcy. 
B)  allows a debtor to retain possession of his or her assets. 
C)  is more expensive and more complicated. 
D)  permits any interested party to file a repayment plan.

Question 10

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

Accepted Answer

A) True 
 B)False

Question 11

All bankruptcy proceedings are conducted in federal bankruptcy courts.

Accepted Answer

A) True 
 B)False

Question 12

Under Chapter 13, a plan may provide for the payment of an amount less than 100 percent of the debtor's total obligations.

Accepted Answer

A) True 
 B)False

Question 13

One of the Bankruptcy Code's main goals is to ensure preferential treatment of certain creditors who are competing for a debtor's assets.

Accepted Answer

A) True 
 B)False

Question 14

Under Chapter 13, all debts are dischargeable.

Accepted Answer

A) True 
 B)False

Question 15

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least

Accepted Answer

A)  $155. 
B)  $1,575. 
C)  $15,775. 
D)  $157,750. 
A)  $155. 
B)  $1,575. 
C)  $15,775. 
D)  $157,750.

Question 16

All bankruptcy proceedings are held in

Accepted Answer

A)  federal bankruptcy courts. 
B)  state bankruptcy courts. 
C)  special cross-jurisdictional debtors courts. 
D)  local small-claims courts. 
A)  federal bankruptcy courts. 
B)  state bankruptcy courts. 
C)  special cross-jurisdictional debtors courts. 
D)  local small-claims courts.

Question 17

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

Accepted Answer

A) True 
 B)False

Question 18

Ann files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution. Brian is

Accepted Answer

A)  a secured creditor. 
B)  a bankruptcy court judge. 
C)  a bankruptcy trustee. 
D)  a debtor who filed jointly for bankruptcy under a single petition. 
A)  a secured creditor. 
B)  a bankruptcy court judge. 
C)  a bankruptcy trustee. 
D)  a debtor who filed jointly for bankruptcy under a single petition.

Question 19

Chapter 7 of the Bankruptcy Code provides for

Accepted Answer

A)  the adjustment of debts of individuals-not businesses. 
B)  liquidation proceedings. 
C)  the reorganization of the obligations of the debtor. 
D)  the adjustment of debts of businesses-not individuals. 
A)  the adjustment of debts of individuals-not businesses. 
B)  liquidation proceedings. 
C)  the reorganization of the obligations of the debtor. 
D)  the adjustment of debts of businesses-not individuals.

Question 20

With respect to creditors, the main goal of bankruptcy law is to

Accepted Answer

A)  ensure that creditors will continue to lend to insolvent debtors. 
B)  protect creditor assets from diminution in value. 
C)  ensure equitable treatment in the competition for debtor assets. 
D)  make all debtor property available for all creditor claims. 
A)  ensure that creditors will continue to lend to insolvent debtors. 
B)  protect creditor assets from diminution in value. 
C)  ensure equitable treatment in the competition for debtor assets. 
D)  make all debtor property available for all creditor claims.

Exam 26: Bankruptcy

A Chapter 13 proceeding is more expensive and complicated than a Chapter 11 or Chapter 7 proceeding.

Any person-including individuals, but not partnerships or corporations-may be a debtor under Chapter 7.

In a Chapter 7 proceeding, if the value of the debtor's estate does not provide sufficient cash to pay all the creditors, it is given back to the debtor.

Eligible for relief on a petition in bankruptcy under Chapter 11 is

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter 7 petition or explain why such a motion would not be appropriate.

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

All bankruptcy proceedings are conducted in federal bankruptcy courts.

Under Chapter 13, a plan may provide for the payment of an amount less than 100 percent of the debtor's total obligations.

One of the Bankruptcy Code's main goals is to ensure preferential treatment of certain creditors who are competing for a debtor's assets.

Under Chapter 13, all debts are dischargeable.

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least

All bankruptcy proceedings are held in

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

Ann files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution. Brian is

Chapter 7 of the Bankruptcy Code provides for

With respect to creditors, the main goal of bankruptcy law is to

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