Question 1

Explain Chapter 7 liquidation bankruptcy with an example.

Accepted Answer

In Chapter 7 liquidation bankruptcy,the

Question 2

Which of the following is true of Chapter 11 of the Bankruptcy Code?

Accepted Answer

A)  Chapter 11 is a rehabilitation form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts. 
B)  Chapter 11 petition filing immediately enables creditors to recover the debtor's property. 
C)  Chapter 11 helps the debtor reorganize with a new capital structure so that the debtor emerges from bankruptcy as a viable concern. 
D)  Chapter 11 does not permit a debtor to reject executory contracts or unexpired leases. 
A)  Chapter 11 is a rehabilitation form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts. 
B)  Chapter 11 petition filing immediately enables creditors to recover the debtor's property. 
C)  Chapter 11 helps the debtor reorganize with a new capital structure so that the debtor emerges from bankruptcy as a viable concern. 
D)  Chapter 11 does not permit a debtor to reject executory contracts or unexpired leases.

Question 3

A(n)________ provides for the reduction of a debtor's debts.

Accepted Answer

A)  extension 
B)  liquidation 
C)  limitation 
D)  composition 
A)  extension 
B)  liquidation 
C)  limitation 
D)  composition

Question 4

The goal of Chapter 11 bankruptcy is to reorganize the debtor with a new capital structure.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

Accepted Answer

A)  It made it easier for debtors to be relieved of much of their debt. 
B)  It made it much more difficult for debtors to escape with their debts. 
C)  It was criticized for being too debtor friendly. 
D)  It was enacted as a result of lobbying by consumer groups and home owners. 
A)  It made it easier for debtors to be relieved of much of their debt. 
B)  It made it much more difficult for debtors to escape with their debts. 
C)  It was criticized for being too debtor friendly. 
D)  It was enacted as a result of lobbying by consumer groups and home owners.

Question 6

The ________ is a bankruptcy rule that applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family.

Accepted Answer

A)  means test 
B)  median income test 
C)  Chapter 13 discharge 
D)  Chapter 13 plan of payment 
A)  means test 
B)  median income test 
C)  Chapter 13 discharge 
D)  Chapter 13 plan of payment

Question 7

Which of the following is true of Chapter 11 discharge of debts?

Accepted Answer

A)  Equal amounts of secured and unsecured debt can be discharged based on a debtor's proposal. 
B)  The entire unsecured debt can be discharged based on a debtor's proposal. 
C)  Discharge of a portion of unsecured debt by a debtor is permitted to make its plan of organization feasible. 
D)  Discharged debt need to be repaid from the postpetition income of a debtor. 
A)  Equal amounts of secured and unsecured debt can be discharged based on a debtor's proposal. 
B)  The entire unsecured debt can be discharged based on a debtor's proposal. 
C)  Discharge of a portion of unsecured debt by a debtor is permitted to make its plan of organization feasible. 
D)  Discharged debt need to be repaid from the postpetition income of a debtor.

Question 8

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 9

Under the 2005 bankruptcy act,if a nonexempt personal property of an individual debtor secures a claim or is subject to an unexpired lease,the debtor ________.

Accepted Answer

A)  must surrender the property 
B)  can appeal for exemption of the property 
C)  must terminate the lease with immediate effect 
D)  cannot redeem the property 
A)  must surrender the property 
B)  can appeal for exemption of the property 
C)  must terminate the lease with immediate effect 
D)  cannot redeem the property

Question 10

Which of the following is true of a debtor's bankruptcy estate?

Accepted Answer

A)  Only intangible personal property constitutes the bankruptcy estate. 
B)  No property solely owned by the debtor is exempted from constituting the bankruptcy estate. 
C)  Creditors are allowed to claim exempt property. 
D)  All interests of a debtor's spouse are included in the bankruptcy estate. 
A)  Only intangible personal property constitutes the bankruptcy estate. 
B)  No property solely owned by the debtor is exempted from constituting the bankruptcy estate. 
C)  Creditors are allowed to claim exempt property. 
D)  All interests of a debtor's spouse are included in the bankruptcy estate.

Question 11

A bankruptcy trustee is a legal representative of the debtor's estate.

Accepted Answer

A) True 
 B)False

Question 12

According to the 2005 act,a debtor can be granted Chapter 7 relief only after four years of following Chapter 7 relief.

Accepted Answer

A) True 
 B)False

Question 13

Explain reaffirmation agreement with an example.

Accepted Answer

A debtor and a creditor can enter into a

Question 14

Which of the following is true of a Chapter 13 petition?

Accepted Answer

A)  It can be filed by all individual debtors, irrespective of their income status. 
B)  The petitioner need not demand an extension or composition. 
C)  To qualify for Chapter 13, the debts must primarily be consumer debt. 
D)  Creditors can file a Chapter 13 petition claiming payment from a debtor. 
A)  It can be filed by all individual debtors, irrespective of their income status. 
B)  The petitioner need not demand an extension or composition. 
C)  To qualify for Chapter 13, the debts must primarily be consumer debt. 
D)  Creditors can file a Chapter 13 petition claiming payment from a debtor.

Question 15

The attorney representing a debtor is subject to monetary fines and sanctions if there are any factual discrepancies found in the debtor's information.

Accepted Answer

A) True 
 B)False

Question 16

________ is a rehabilitation form of bankruptcy for individuals.

Accepted Answer

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

Question 17

Kate is granted a Chapter 7 discharge after filing for bankruptcy.However,she still has about $20,000 of unsecured debt in the form of credit card debt.Which of the following is true in this case?

Accepted Answer

A)  Kate is liable to pay the debt with her exempt property. 
B)  Kate is liable to pay the money with her postpetition income. 
C)  Kate is legally relieved of this debt. 
D)  Kate is liable to pay the debt with her future earnings. 
A)  Kate is liable to pay the debt with her exempt property. 
B)  Kate is liable to pay the money with her postpetition income. 
C)  Kate is legally relieved of this debt. 
D)  Kate is liable to pay the debt with her future earnings.

Question 18

Which of the following best defines a proof of claim?

Accepted Answer

A)  a statement by the debtor that states that he or she has debts 
B)  a document required to be filed by a debtor stating the property that is exempted from constituting the bankruptcy estate 
C)  a document required to be filed by a creditor that states the amount of his or her claim against the debtor 
D)  a statement by creditors alleging that the debtor is not paying his or her debts as they become due 
A)  a statement by the debtor that states that he or she has debts 
B)  a document required to be filed by a debtor stating the property that is exempted from constituting the bankruptcy estate 
C)  a document required to be filed by a creditor that states the amount of his or her claim against the debtor 
D)  a statement by creditors alleging that the debtor is not paying his or her debts as they become due

Question 19

Which of the following is true of discharge of debt?

Accepted Answer

A)  A debtor is legally liable to pay a partial amount of the discharged debts. 
B)  All kinds of debts are dischargeable in a bankruptcy procedure. 
C)  A creditor cannot pursue nondischarged debts after the debtor's bankruptcy. 
D)  A debtor is not legally liable to pay the discharged debts. 
A)  A debtor is legally liable to pay a partial amount of the discharged debts. 
B)  All kinds of debts are dischargeable in a bankruptcy procedure. 
C)  A creditor cannot pursue nondischarged debts after the debtor's bankruptcy. 
D)  A debtor is not legally liable to pay the discharged debts.

Question 20

Chapter 7 discharge is granted quite soon after the bankruptcy petition is filed.

Accepted Answer

A) True 
 B)False

Exam 24: Bankruptcy and Reorganization

Explain Chapter 7 liquidation bankruptcy with an example.

Which of the following is true of Chapter 11 of the Bankruptcy Code?

A(n)________ provides for the reduction of a debtor's debts.

The goal of Chapter 11 bankruptcy is to reorganize the debtor with a new capital structure.

Which of the following is true of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

The ________ is a bankruptcy rule that applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family.

Which of the following is true of Chapter 11 discharge of debts?

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.

Under the 2005 bankruptcy act,if a nonexempt personal property of an individual debtor secures a claim or is subject to an unexpired lease,the debtor ________.

Which of the following is true of a debtor's bankruptcy estate?

A bankruptcy trustee is a legal representative of the debtor's estate.

According to the 2005 act,a debtor can be granted Chapter 7 relief only after four years of following Chapter 7 relief.

Explain reaffirmation agreement with an example.

Which of the following is true of a Chapter 13 petition?

The attorney representing a debtor is subject to monetary fines and sanctions if there are any factual discrepancies found in the debtor's information.

________ is a rehabilitation form of bankruptcy for individuals.

Kate is granted a Chapter 7 discharge after filing for bankruptcy.However,she still has about $20,000 of unsecured debt in the form of credit card debt.Which of the following is true in this case?

Which of the following best defines a proof of claim?

Which of the following is true of discharge of debt?

Chapter 7 discharge is granted quite soon after the bankruptcy petition is filed.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

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Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

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Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

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Real Property, Landlord-Tenant Law, and Land Use Regulation

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