Question 1

A debtor filing for bankruptcy who is represented by an attorney need not be investigated or verified.

Accepted Answer

A) True 
 B)False

Question 2

How does a court order to discharge debts benefit the debtor? Under what consideration do courts grant a discharge?

Accepted Answer

In Chapter 7 (liquidation), Chapter 11 (

Question 3

What is an executory contract?

Accepted Answer

A) a contract that cannot be discharged under Chapter 13 
B) a contract that the debtor is obliged to perform despite filing for bankruptcy 
C) an agreement between several creditors and a single debtor, dividing the debtor's property 
D) a lease that has not been fully performed 
A) a contract that cannot be discharged under Chapter 13 
B) a contract that the debtor is obliged to perform despite filing for bankruptcy 
C) an agreement between several creditors and a single debtor, dividing the debtor's property 
D) a lease that has not been fully performed

Question 4

Exempt property may not be retained by a debtor who files for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of Chapter 7 liquidation?

Accepted Answer

A) The debtor is not permitted to keep any of his or her assets. 
B) The 2005 bankruptcy act has eased the process of applying for Chapter 7 bankruptcy. 
C) The debtor's future income cannot be reached to pay the discharged debt. 
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter. 
A) The debtor is not permitted to keep any of his or her assets. 
B) The 2005 bankruptcy act has eased the process of applying for Chapter 7 bankruptcy. 
C) The debtor's future income cannot be reached to pay the discharged debt. 
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter.

Question 6

Which of the following constitutes the bankruptcy estate of a debtor?

Accepted Answer

A) interest in jewelry worth $1, 000 
B) unmatured life insurance policy owned by the debtor 
C) interests in wrongful death benefits 
D) interest of $3, 500 in a motor vehicle 
A) interest in jewelry worth $1, 000 
B) unmatured life insurance policy owned by the debtor 
C) interests in wrongful death benefits 
D) interest of $3, 500 in a motor vehicle

Question 7

Unscheduled claims are not dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 8

A bankruptcy trustee is a legal representative of a creditor's claim to an estate.

Accepted Answer

A) True 
 B)False

Question 9

A Chapter 13 discharge is granted to the debtor before the debtor's plan of payment begins.

Accepted Answer

A) True 
 B)False

Question 10

A voluntary petition is a petition filed by a creditor that states that the debtor has paid his debts.

Accepted Answer

A) True 
 B)False

Question 11

A proof of claim is a document required to be filed by a creditor that states the amount of his or her claim against the debtor.

Accepted Answer

A) True 
 B)False

Question 12

The acceptance method is a method whereby the court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

Accepted Answer

A) True 
 B)False

Question 13

A reaffirmation agreement is an agreement whereby a creditor agrees to discharge the debtor of certain debts that maybe included in the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 14

A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 15

The median income test is bankruptcy rule that states that if a debtor's median family income is at or below the state's median family income for a family the same size as the debtor's family, the debtor can receive Chapter 7 relief.

Accepted Answer

A) True 
 B)False

Question 16

The property of a Chapter 13 estate consists of nonexempt property acquired after the case is closed.

Accepted Answer

A) True 
 B)False

Question 17

A(n)________ is a document required to be filed by an equity security holder that states the amount of his or her interest against the debtor.

Accepted Answer

A) proof of claim 
B) proof of interest 
C) voluntary petition 
D) involuntary petition 
A) proof of claim 
B) proof of interest 
C) voluntary petition 
D) involuntary petition

Question 18

An order of relief occurs upon the filing of either a voluntary petition or an unchallenged involuntary petition.

Accepted Answer

A) True 
 B)False

Question 19

What is Chapter 7 discharge?

Accepted Answer

A) The termination of the legal duty of an individual debtor to pay both secured and unsecured secured debts before he or she is granted a court trial. 
B) The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments. 
A) The termination of the legal duty of an individual debtor to pay both secured and unsecured secured debts before he or she is granted a court trial. 
B) The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments.

Question 20

Which of the following is true of the bankruptcy procedure?

Accepted Answer

A) A driven petition is a petition filed by a debtor that states that he or she has debts. 
B) A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding. 
A) A driven petition is a petition filed by a debtor that states that he or she has debts. 
B) A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding.

Exam 28: Bankruptcy and Reorganization

A debtor filing for bankruptcy who is represented by an attorney need not be investigated or verified.

How does a court order to discharge debts benefit the debtor? Under what consideration do courts grant a discharge?

What is an executory contract?

Exempt property may not be retained by a debtor who files for bankruptcy.

Which of the following is true of Chapter 7 liquidation?

Which of the following constitutes the bankruptcy estate of a debtor?

Unscheduled claims are not dischargeable in bankruptcy.

A bankruptcy trustee is a legal representative of a creditor's claim to an estate.

A Chapter 13 discharge is granted to the debtor before the debtor's plan of payment begins.

A voluntary petition is a petition filed by a creditor that states that the debtor has paid his debts.

A proof of claim is a document required to be filed by a creditor that states the amount of his or her claim against the debtor.

The acceptance method is a method whereby the court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

A reaffirmation agreement is an agreement whereby a creditor agrees to discharge the debtor of certain debts that maybe included in the bankruptcy.

A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding.

The median income test is bankruptcy rule that states that if a debtor's median family income is at or below the state's median family income for a family the same size as the debtor's family, the debtor can receive Chapter 7 relief.

The property of a Chapter 13 estate consists of nonexempt property acquired after the case is closed.

A(n)________ is a document required to be filed by an equity security holder that states the amount of his or her interest against the debtor.

An order of relief occurs upon the filing of either a voluntary petition or an unchallenged involuntary petition.

What is Chapter 7 discharge?

Which of the following is true of the bankruptcy procedure?

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