Question 1

Which of the following is true of the meeting of the creditors?

Accepted Answer

A) A meeting of the creditors is called before the court grants an order for relief. 
B) The bankruptcy judge cannot attend the meeting of the creditors. 
C) In the first meeting of the creditors, a debtor is questioned by a jury constituted for the purpose. 
D) Questions regarding the debtor's possible concealment of assets are not permitted during the meeting of the creditors. 
A) A meeting of the creditors is called before the court grants an order for relief. 
B) The bankruptcy judge cannot attend the meeting of the creditors. 
C) In the first meeting of the creditors, a debtor is questioned by a jury constituted for the purpose. 
D) Questions regarding the debtor's possible concealment of assets are not permitted during the meeting of the creditors.

Question 2

Which of the following federal acts substantially amended federal bankruptcy law in 2005?

Accepted Answer

A) Bankruptcy Reform Act 
B) Bankruptcy Abuse Prevention and Consumer Protection Act 
C) the Nelson Act 
D) the Chandler Act 
A) Bankruptcy Reform Act 
B) Bankruptcy Abuse Prevention and Consumer Protection Act 
C) the Nelson Act 
D) the Chandler Act

Question 3

Which of the following is a feature of the Chapter 11 plan of reorganization?

Accepted Answer

A) an equilateral division of the Chapter 11 estate among all creditors 
B) division of the bankruptcy estate according to the debt to be paid to each creditor 
C) discharge of a debtor's unsecured debts and payment of secured debts 
D) a proposed new capital structure for a debtor to assume when it emerges from Chapter 11 bankruptcy 
A) an equilateral division of the Chapter 11 estate among all creditors 
B) division of the bankruptcy estate according to the debt to be paid to each creditor 
C) discharge of a debtor's unsecured debts and payment of secured debts 
D) a proposed new capital structure for a debtor to assume when it emerges from Chapter 11 bankruptcy

Question 4

A person filing for bankruptcy under Chapter 11 and left in place to operate the business during the reorganization proceeding is known as the ________.

Accepted Answer

A) trustee 
B) debtor-in-possession 
C) consignor 
D) regent 
A) trustee 
B) debtor-in-possession 
C) consignor 
D) regent

Question 5

There are separate state and federal bankruptcy laws.

Accepted Answer

A) True 
 B)False

Question 6

If a person's debts are subject to a Chapter 7 discharge.What does this mean?

Accepted Answer

A) that he or she needs to repay only unsecured debts 
B) that he or she needs to repay only secured debts 
C) that he or she needs to pay his prepetition debts with his postpetition income 
D) that he or she need not repay any debt 
A) that he or she needs to repay only unsecured debts 
B) that he or she needs to repay only secured debts 
C) that he or she needs to pay his prepetition debts with his postpetition income 
D) that he or she need not repay any debt

Question 7

The Bankruptcy Act of 2005 requires that before an individual debtor receives a discharge in a Chapter 7 or Chapter 13 bankruptcy, the debtor must attend a personal financial management course approved by the U.S.Trustee.

Accepted Answer

A) True 
 B)False

Question 8

Describe the procedure for filing a bankruptcy petition.

Accepted Answer

1.Voluntary petition-A voluntary petitio

Question 9

The Bankruptcy Reform Act of 1978 made it easier for debtors to file for bankruptcy and have their unpaid debts discharged.

Accepted Answer

A) True 
 B)False

Question 10

The filing of either a voluntary petition or an unchallenged involuntary petition constitutes a(n)________.

Accepted Answer

A) prayer for relief 
B) discharge 
C) order for relief 
D) composition 
A) prayer for relief 
B) discharge 
C) order for relief 
D) composition

Question 11

Liquidation is a form of bankruptcy in which the debtor's exempt property is auctioned.

Accepted Answer

A) True 
 B)False

Question 12

The bankruptcy judge cannot attend the first meeting of the creditors.

Accepted Answer

A) True 
 B)False

Question 13

A U.S.Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

Accepted Answer

A) True 
 B)False

Question 14

Gifts that a debtor is entitled to receive within 180 days after the petition is filed are part of the bankruptcy estate.

Accepted Answer

A) True 
 B)False

Question 15

The 2005 act requires an attorney certification whereby an attorney who represents a client in bankruptcy must certify the accuracy of the information contained in the bankruptcy petition.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of the median income test?

Accepted Answer

A) If a family has median family income equal to the state's median family income, the debtor does not qualify for Chapter 7 bankruptcy. 
B) If a family has median family income below the state's median family income, the debtor is subject to the "means" test. 
C) If a family has median family income below to the state's median family income, the debtor automatically qualifies for Chapter 7 bankruptcy. 
D) A debtor's debts are not discharged if the family median income is more than the state's median family income. 
A) If a family has median family income equal to the state's median family income, the debtor does not qualify for Chapter 7 bankruptcy. 
B) If a family has median family income below the state's median family income, the debtor is subject to the "means" test. 
C) If a family has median family income below to the state's median family income, the debtor automatically qualifies for Chapter 7 bankruptcy. 
D) A debtor's debts are not discharged if the family median income is more than the state's median family income.

Question 17

A composition provides a longer period of time for the debtor to pay his or her debts.

Accepted Answer

A) True 
 B)False

Question 18

An automatic stay refers to the suspension of certain legal actions by creditors against a debtor or the debtor's property.

Accepted Answer

A) True 
 B)False

Question 19

Bankruptcy proceedings are carried out at special U.S.Bankruptcy Courts created by the Congress.

Accepted Answer

A) True 
 B)False

Exam 28: Bankruptcy and Reorganization

Which of the following is true of the meeting of the creditors?

Which of the following federal acts substantially amended federal bankruptcy law in 2005?

Which of the following is a feature of the Chapter 11 plan of reorganization?

A person filing for bankruptcy under Chapter 11 and left in place to operate the business during the reorganization proceeding is known as the ________.

There are separate state and federal bankruptcy laws.

If a person's debts are subject to a Chapter 7 discharge.What does this mean?

The Bankruptcy Act of 2005 requires that before an individual debtor receives a discharge in a Chapter 7 or Chapter 13 bankruptcy, the debtor must attend a personal financial management course approved by the U.S.Trustee.

Describe the procedure for filing a bankruptcy petition.

The Bankruptcy Reform Act of 1978 made it easier for debtors to file for bankruptcy and have their unpaid debts discharged.

The filing of either a voluntary petition or an unchallenged involuntary petition constitutes a(n)________.

Liquidation is a form of bankruptcy in which the debtor's exempt property is auctioned.

The bankruptcy judge cannot attend the first meeting of the creditors.

A U.S.Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

Gifts that a debtor is entitled to receive within 180 days after the petition is filed are part of the bankruptcy estate.

The 2005 act requires an attorney certification whereby an attorney who represents a client in bankruptcy must certify the accuracy of the information contained in the bankruptcy petition.

Which of the following is true of the median income test?

A composition provides a longer period of time for the debtor to pay his or her debts.

An automatic stay refers to the suspension of certain legal actions by creditors against a debtor or the debtor's property.

Bankruptcy proceedings are carried out at special U.S.Bankruptcy Courts created by the Congress.

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