Question 1

Chapter 13 bankruptcy does not require debtors to pay some of their future income to pay off prepetition debts.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the procedures involved in Chapter 13 plan of payment.

Accepted Answer

The debtor's Chapter 13 plan of payment

Question 3

Why is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 considered "creditor friendly?"

Accepted Answer

The 2005 act made it much more difficult

Question 4

The 2005 bankruptcy act 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 5

As changed in the 2005 Act,which of the following are the first unsecured claims to be paid?

Accepted Answer

A)  claims for contributions to employee benefit plans based on services performed within 180 days immediately preceding the filing of the petition 
B)  claims for unpaid income and gross receipt taxes owed to governments 
C)  claims for cash deposited by a consumer with the debtor prior to the filing of bankruptcy petition 
D)  claims for domestic support owed to the spouse, former spouse, or child of the debtor 
A)  claims for contributions to employee benefit plans based on services performed within 180 days immediately preceding the filing of the petition 
B)  claims for unpaid income and gross receipt taxes owed to governments 
C)  claims for cash deposited by a consumer with the debtor prior to the filing of bankruptcy petition 
D)  claims for domestic support owed to the spouse, former spouse, or child of the debtor

Question 6

Which of the following is true of the 1978 bankruptcy law in the United States?

Accepted Answer

A)  It made it easier for debtors to be relieved of much of their debt. 
B)  It was deemed to be "creditor friendly." 
C)  It prevented debtors from escaping their unsecured debts. 
D)  It was enacted as a result of lobbying by credit card companies and banks. 
A)  It made it easier for debtors to be relieved of much of their debt. 
B)  It was deemed to be "creditor friendly." 
C)  It prevented debtors from escaping their unsecured debts. 
D)  It was enacted as a result of lobbying by credit card companies and banks.

Question 7

________ property may be retained by a debtor pursuant to federal and state law that does not become part of the bankruptcy estate.

Accepted Answer

A)  Secured 
B)  Unsecured 
C)  Exempt 
D)  Collateral 
A)  Secured 
B)  Unsecured 
C)  Exempt 
D)  Collateral

Question 8

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 9

The property of Chapter 13 estate consists of all nonexempt property of the debtor before the case is closed.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the advantages of Chapter 13 over Chapter 7 for debtors and creditors.

Accepted Answer

Debtors have many advantages under Chapt

Question 11

Explain Chapter 11 reorganization bankruptcy with an example.

Accepted Answer

Chapter 11 reorganization bankruptcy pro

Question 12

The means test is used to determine whether ________.

Accepted Answer

A)  the debtor's median family income is less than the state's median family income 
B)  the debtor's median family income is more than the state's median family income 
C)  the debtor has the capability to pay prepetition debts out of postpetition income 
D)  the debtor would qualify to file for bankruptcy under Chapter 13 
A)  the debtor's median family income is less than the state's median family income 
B)  the debtor's median family income is more than the state's median family income 
C)  the debtor has the capability to pay prepetition debts out of postpetition income 
D)  the debtor would qualify to file for bankruptcy under Chapter 13

Question 13

________ is a form of bankruptcy in which the debtor's nonexempt property is sold for cash,the cash is distributed to the creditors,and any unpaid debts are discharged.

Accepted Answer

A)  Abusive filing 
B)  Dissolution of debt 
C)  Liquidation 
D)  Reorganization 
A)  Abusive filing 
B)  Dissolution of debt 
C)  Liquidation 
D)  Reorganization

Question 14

A major benefit of ________ bankruptcy is that the debtor is given the opportunity to accept or reject certain executory contracts and unexpired leases.

Accepted Answer

A)  Chapter 13 
B)  Chapter 11 
C)  Chapter 12 
D)  Chapter 7 
A)  Chapter 13 
B)  Chapter 11 
C)  Chapter 12 
D)  Chapter 7

Question 15

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.

Question 16

For creditors,which of the following is an advantage of Chapter 13 over Chapter 7?

Accepted Answer

A)  It allows them to recover a greater percentage of the debts owed to them. 
B)  It doesn't permit debtors to discharge even a small portion of unsecured debt. 
C)  It permits creditors to get hold of the exempt and nonexempt properties of debtors. 
D)  It ensures instant repayment of the debt without any delay. 
A)  It allows them to recover a greater percentage of the debts owed to them. 
B)  It doesn't permit debtors to discharge even a small portion of unsecured debt. 
C)  It permits creditors to get hold of the exempt and nonexempt properties of debtors. 
D)  It ensures instant repayment of the debt without any delay.

Question 17

Chapter 7 liquidation bankruptcy is also known as straight bankruptcy.

Accepted Answer

A) True 
 B)False

Question 18

The bankruptcy court permits the debtor to reduce its unsecured debt in order to make its plan of organization feasible.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a feature of the Helping Families Save Their Home Act of 2009?

Accepted Answer

A)  It prevents debtors from seeking mortgage modification while in an active bankruptcy case. 
B)  It allows mortgage lenders to file a claim in a bankruptcy case if the lender has failed to comply with the requirements. 
C)  It states that debtors with total mortgage debt of more than $1,010,000 are not eligible for a Chapter 13. 
D)  It eliminates the need for prepetition credit counseling before a debtor may file for bankruptcy. 
A)  It prevents debtors from seeking mortgage modification while in an active bankruptcy case. 
B)  It allows mortgage lenders to file a claim in a bankruptcy case if the lender has failed to comply with the requirements. 
C)  It states that debtors with total mortgage debt of more than $1,010,000 are not eligible for a Chapter 13. 
D)  It eliminates the need for prepetition credit counseling before a debtor may file for bankruptcy.

Question 20

In a Chapter 11 bankruptcy,the creditors' committee is usually composed of ________.

Accepted Answer

A)  all unsecured creditors and the three largest secured creditors 
B)  the seven largest unsecured creditors 
C)  the seven largest unsecured creditors, and all secured creditors 
D)  the three largest secured creditors and the three largest unsecured creditors 
A)  all unsecured creditors and the three largest secured creditors 
B)  the seven largest unsecured creditors 
C)  the seven largest unsecured creditors, and all secured creditors 
D)  the three largest secured creditors and the three largest unsecured creditors

Exam 24: Bankruptcy and Reorganization

Chapter 13 bankruptcy does not require debtors to pay some of their future income to pay off prepetition debts.

Discuss the procedures involved in Chapter 13 plan of payment.

Why is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 considered "creditor friendly?"

The 2005 bankruptcy act 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.

As changed in the 2005 Act,which of the following are the first unsecured claims to be paid?

Which of the following is true of the 1978 bankruptcy law in the United States?

________ property may be retained by a debtor pursuant to federal and state law that does not become part of the bankruptcy estate.

Which of the following is true of Chapter 7 liquidation?

The property of Chapter 13 estate consists of all nonexempt property of the debtor before the case is closed.

Discuss the advantages of Chapter 13 over Chapter 7 for debtors and creditors.

Explain Chapter 11 reorganization bankruptcy with an example.

The means test is used to determine whether ________.

________ is a form of bankruptcy in which the debtor's nonexempt property is sold for cash,the cash is distributed to the creditors,and any unpaid debts are discharged.

A major benefit of ________ bankruptcy is that the debtor is given the opportunity to accept or reject certain executory contracts and unexpired leases.

Which of the following is true of the bankruptcy procedure?

For creditors,which of the following is an advantage of Chapter 13 over Chapter 7?

Chapter 7 liquidation bankruptcy is also known as straight bankruptcy.

The bankruptcy court permits the debtor to reduce its unsecured debt in order to make its plan of organization feasible.

Which of the following is a feature of the Helping Families Save Their Home Act of 2009?

In a Chapter 11 bankruptcy,the creditors' committee is usually composed of ________.

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