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

When discharge is granted,the debtor is legally liable to pay a partial amount of the discharge debts.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true of bankruptcy laws in the United States?

Accepted Answer

A)  The U.S. Securities and Exchange Commission has the power to establish uniform bankruptcy laws. 
B)  The bankruptcy law in the United States differs from state to state. 
C)  The original federal Bankruptcy Act was enacted in 1878. 
D)  The states have the right to amend bankruptcy laws whenever they want. 
A)  The U.S. Securities and Exchange Commission has the power to establish uniform bankruptcy laws. 
B)  The bankruptcy law in the United States differs from state to state. 
C)  The original federal Bankruptcy Act was enacted in 1878. 
D)  The states have the right to amend bankruptcy laws whenever they want.

Question 4

Which of the following is also referred to as straight bankruptcy?

Accepted Answer

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

Question 5

A(n)________ provision is a provision whereby the court confirms a plan of reorganization over an objecting class of creditors if certain requirements are met.

Accepted Answer

A)  cram-down 
B)  acceptance 
C)  discharge 
D)  liquidation 
A)  cram-down 
B)  acceptance 
C)  discharge 
D)  liquidation

Question 6

Creditors have the legal right to claim at least half of the debtor's exempt property.

Accepted Answer

A) True 
 B)False

Question 7

How does the 2005 act reduce the number of debtors who qualify for Chapter 7 liquidation bankruptcy?

Accepted Answer

A)  It added two new tests, the median income test and the means test, to determine whether a debtor qualifies. 
B)  It used the employment history of debtors to determine their approximate postpetition income. 
C)  It used new methods to determine whether the debtors are providing False information regarding their financial position. 
D)  It made the Chapter 7 liquidation procedures tougher in order to discourage debtors from opting for it. 
A)  It added two new tests, the median income test and the means test, to determine whether a debtor qualifies. 
B)  It used the employment history of debtors to determine their approximate postpetition income. 
C)  It used new methods to determine whether the debtors are providing False information regarding their financial position. 
D)  It made the Chapter 7 liquidation procedures tougher in order to discourage debtors from opting for it.

Question 8

A bankruptcy trustee is a ________.

Accepted Answer

A)  legal representative of a debtor's estate 
B)  claimant to the debtor's estate on behalf of a creditor 
C)  federal government official responsible for supervising a bankruptcy case 
D)  bankruptcy judge, appointed by a U.S. Bankruptcy Court 
A)  legal representative of a debtor's estate 
B)  claimant to the debtor's estate on behalf of a creditor 
C)  federal government official responsible for supervising a bankruptcy case 
D)  bankruptcy judge, appointed by a U.S. Bankruptcy Court

Question 9

The debtor is not allowed to have an attorney during the first meeting of the creditors.

Accepted Answer

A) True 
 B)False

Question 10

It is not possible for an individual to file bankruptcy petitions without the assistance of an attorney.

Accepted Answer

A) True 
 B)False

Question 11

According to the 2005 bankruptcy act,when is a debtor granted Chapter 7 relief?

Accepted Answer

A)  six years following Chapter 11 relief 
B)  four years following Chapter 11 relief 
C)  six years following Chapter 12 relief 
D)  three years following Chapter 13 relief 
A)  six years following Chapter 11 relief 
B)  four years following Chapter 11 relief 
C)  six years following Chapter 12 relief 
D)  three years following Chapter 13 relief

Question 12

Discharge of unsatisfied debts can be denied if the debtor made False representations about his or her financial position.

Accepted Answer

A) True 
 B)False

Question 13

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 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 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 14

Explain the difference between voluntary petition and involuntary petition with an example.

Accepted Answer

A voluntary bankruptcy petition is filed

Question 15

Explain Chapter 11 plan of reorganization.

Accepted Answer

The plan of reorganization sets forth th

Question 16

The bankruptcy estate is created upon the ________ of a bankruptcy case.

Accepted Answer

A)  commencement 
B)  continuance 
C)  termination 
D)  discharge 
A)  commencement 
B)  continuance 
C)  termination 
D)  discharge

Question 17

The Helping Families Save Their Homes Act of 2009 doesn't permit debtors to seek mortgage modification while in an active bankruptcy case.

Accepted Answer

A) True 
 B)False

Question 18

Techtel Corp.has $25 million in secured debt and $10 million in unsecured debt.After a series of quarterly losses,the company files for Chapter 11 bankruptcy.Techtel proposes a plan of reorganization,which discharges about 60 percent of its unsecured debt.Which of the following would happen upon the bankruptcy court's approval of the proposed plan of reorganization?

Accepted Answer

A)  Techtel will be liable to pay the discharged unsecured debt after eliminating its secured debt. 
B)  Techtel will be liable to pay 40 percent of its unsecured debt on a pro-rata basis. 
C)  Techtel will be allowed to discharge a significant percent of its secured debt, as well. 
D)  Techtel will be allowed to propose a new plan of payment after a few months to discharge the remaining 40 percent of its unsecured debt. 
A)  Techtel will be liable to pay the discharged unsecured debt after eliminating its secured debt. 
B)  Techtel will be liable to pay 40 percent of its unsecured debt on a pro-rata basis. 
C)  Techtel will be allowed to discharge a significant percent of its secured debt, as well. 
D)  Techtel will be allowed to propose a new plan of payment after a few months to discharge the remaining 40 percent of its unsecured debt.

Question 19

Which of the following reasons can be used to file an objection to the discharge of a debt?

Accepted Answer

A)  huge amount of unsecured debts by the debtor 
B)  lack of real property to cover the debts incurred 
C)  poor credit score of the debtor 
D)  misrepresentation of financial condition 
A)  huge amount of unsecured debts by the debtor 
B)  lack of real property to cover the debts incurred 
C)  poor credit score of the debtor 
D)  misrepresentation of financial condition

Question 20

One of the purposes of the ________ is to force many debtors out of Chapter 7 bankruptcy and into Chapter 13 bankruptcy.

Accepted Answer

A)  Federal Bankruptcy Act of 1878 
B)  Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 
C)  Families Save Their Homes Act of 2009 
D)  Federal Bankruptcy Act of 1978 
A)  Federal Bankruptcy Act of 1878 
B)  Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 
C)  Families Save Their Homes Act of 2009 
D)  Federal Bankruptcy Act of 1978

Exam 24: Bankruptcy and Reorganization

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

When discharge is granted,the debtor is legally liable to pay a partial amount of the discharge debts.

Which of the following is true of bankruptcy laws in the United States?

Which of the following is also referred to as straight bankruptcy?

A(n)________ provision is a provision whereby the court confirms a plan of reorganization over an objecting class of creditors if certain requirements are met.

Creditors have the legal right to claim at least half of the debtor's exempt property.

How does the 2005 act reduce the number of debtors who qualify for Chapter 7 liquidation bankruptcy?

A bankruptcy trustee is a ________.

The debtor is not allowed to have an attorney during the first meeting of the creditors.

It is not possible for an individual to file bankruptcy petitions without the assistance of an attorney.

According to the 2005 bankruptcy act,when is a debtor granted Chapter 7 relief?

Discharge of unsatisfied debts can be denied if the debtor made False representations about his or her financial position.

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

Explain the difference between voluntary petition and involuntary petition with an example.

Explain Chapter 11 plan of reorganization.

The bankruptcy estate is created upon the ________ of a bankruptcy case.

The Helping Families Save Their Homes Act of 2009 doesn't permit debtors to seek mortgage modification while in an active bankruptcy case.

Which of the following reasons can be used to file an objection to the discharge of a debt?

One of the purposes of the ________ is to force many debtors out of Chapter 7 bankruptcy and into Chapter 13 bankruptcy.

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

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

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

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

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

Family Law, Wills, and Trusts

Accountants' Duties and Liability

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