Question 1

What is an executory contract?

Accepted Answer

A)  a contract that cannot be rejected under Chapter 11 
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 contract that has not been fully performed 
A)  a contract that cannot be rejected under Chapter 11 
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 contract that has not been fully performed

Question 2

The United States Bankruptcy Code permits a "small business," defined as one with total debts of less than ________,to use a simplified,fast-track form of Chapter 11 reorganization bankruptcy.

Accepted Answer

A)  $1,000,000 
B)  $1,343,300 
C)  $2,000,000 
D)  $2,343,300 
A)  $1,000,000 
B)  $1,343,300 
C)  $2,000,000 
D)  $2,343,300

Question 3

A Chapter 13 plan of payment cannot be modified if the debtor's income subsequently decreases.

Accepted Answer

A) True 
 B)False

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

Question 5

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires an individual filing for bankruptcy to receive ________.

Accepted Answer

A)  prepetition counseling 
B)  postpetition counseling 
C)  prepetition or postpetition counseling 
D)  prepetition and postpetition counseling 
A)  prepetition counseling 
B)  postpetition counseling 
C)  prepetition or postpetition counseling 
D)  prepetition and postpetition counseling

Question 6

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 7

Why is a discharge of debt granted?

Accepted Answer

A)  to divide the bankruptcy estate equally among all creditors 
B)  to relieve the debtor of the responsibility to pay some of or all the debt 
C)  to divide the bankruptcy estate according to the debt owed to each creditor 
D)  to suspend certain legal actions by creditors against a debtor's property 
A)  to divide the bankruptcy estate equally among all creditors 
B)  to relieve the debtor of the responsibility to pay some of or all the debt 
C)  to divide the bankruptcy estate according to the debt owed to each creditor 
D)  to suspend certain legal actions by creditors against a debtor's property

Question 8

Which of the following is true of Chapter 13 plan of payment?

Accepted Answer

A)  It does not require a debtor to disclose his or her estimated income during their period of plan. 
B)  It must be filed not later than 90 days after the order for relief. 
C)  The plan of payment is summarily rejected if a secured creditor does not accept the plan. 
D)  The plan of payment is summarily rejected if an unsecured creditor does not accept the plan. 
A)  It does not require a debtor to disclose his or her estimated income during their period of plan. 
B)  It must be filed not later than 90 days after the order for relief. 
C)  The plan of payment is summarily rejected if a secured creditor does not accept the plan. 
D)  The plan of payment is summarily rejected if an unsecured creditor does not accept the plan.

Question 9

What is a homestead exemption?

Accepted Answer

A)  investment in realty that a debtor must forfeit 
B)  equity in a home that a debtor is permitted to retain 
C)  remainder of the debtor's interest in commercial property that is returned to him after fulfilling creditors' claims 
D)  all of the debtor's assets converted to cash 
A)  investment in realty that a debtor must forfeit 
B)  equity in a home that a debtor is permitted to retain 
C)  remainder of the debtor's interest in commercial property that is returned to him after fulfilling creditors' claims 
D)  all of the debtor's assets converted to cash

Question 10

Chapter 7 liquidation bankruptcy requires debtors to pay some of their future income to pay off prepetition debts.

Accepted Answer

A) True 
 B)False

Question 11

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is considered to be "debtor friendly."

Accepted Answer

A) True 
 B)False

Question 12

Chapter 7 of the Bankruptcy Code of the bankruptcy act of 2005 primarily deals with ________.

Accepted Answer

A)  reorganization 
B)  adjustment of debts of a family farmer or fisherman with regular income 
C)  adjustment of debts of an individual with regular income 
D)  liquidation 
A)  reorganization 
B)  adjustment of debts of a family farmer or fisherman with regular income 
C)  adjustment of debts of an individual with regular income 
D)  liquidation

Question 13

________ is a form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts in installments over the plan period.

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 14

If the value of the collateral securing the secured loan exceeds the secured interest,the secured creditor is ________.

Accepted Answer

A)  an undersecured creditor 
B)  an oversecured creditor 
C)  not liable for loan repayment 
D)  not qualified for Chapter 7 bankruptcy 
A)  an undersecured creditor 
B)  an oversecured creditor 
C)  not liable for loan repayment 
D)  not qualified for Chapter 7 bankruptcy

Question 15

Which of the following is true of Chapter 13 discharge?

Accepted Answer

A)  It is granted before a Chapter 13 plan of payment is enforced. 
B)  It is not granted if the debtor has received Chapter 7 discharge in the last four years. 
C)  It is granted after the completion of payment plan duration, irrespective of the debts covered. 
D)  It relieves the debtor of all unpaid taxes. 
A)  It is granted before a Chapter 13 plan of payment is enforced. 
B)  It is not granted if the debtor has received Chapter 7 discharge in the last four years. 
C)  It is granted after the completion of payment plan duration, irrespective of the debts covered. 
D)  It relieves the debtor of all unpaid taxes.

Question 16

If a class of creditors does not accept a Chapter 11 plan of reorganization,the bankruptcy court can confirm it by using the cram-down provision.

Accepted Answer

A) True 
 B)False

Question 17

In a Chapter 11 bankruptcy,the debtor-in-possession is not empowered to operate the debtor's business during the bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following constitutes the property of a Chapter 13 estate?

Accepted Answer

A)  nonexempt property of the debtor before the case is closed 
B)  exempt property of the debtor before the case is closed 
C)  debtor's income before and after the case is closed 
D)  property that is exempt from Chapter 7 estate 
A)  nonexempt property of the debtor before the case is closed 
B)  exempt property of the debtor before the case is closed 
C)  debtor's income before and after the case is closed 
D)  property that is exempt from Chapter 7 estate

Question 19

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

Accepted Answer

A)  It grants discharge of debt incurred prior to the date of the order for relief. 
B)  It allows debtors to start a new life without the burden of prepetition debts. 
C)  It prevents debtors from paying prepetition debts out of postpetition income. 
D)  It helps debtors retain more property than is exempt under Chapter 7. 
A)  It grants discharge of debt incurred prior to the date of the order for relief. 
B)  It allows debtors to start a new life without the burden of prepetition debts. 
C)  It prevents debtors from paying prepetition debts out of postpetition income. 
D)  It helps debtors retain more property than is exempt under Chapter 7.

Question 20

The median income test and the means test are used to determine whether a debtor qualifies to obtain a discharge of debts under Chapter 7.

Accepted Answer

A) True 
 B)False

Exam 24: Bankruptcy and Reorganization

What is an executory contract?

The United States Bankruptcy Code permits a "small business," defined as one with total debts of less than ________,to use a simplified,fast-track form of Chapter 11 reorganization bankruptcy.

A Chapter 13 plan of payment cannot be modified if the debtor's income subsequently decreases.

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

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires an individual filing for bankruptcy to receive ________.

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.

Why is a discharge of debt granted?

Which of the following is true of Chapter 13 plan of payment?

What is a homestead exemption?

Chapter 7 liquidation bankruptcy requires debtors to pay some of their future income to pay off prepetition debts.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is considered to be "debtor friendly."

Chapter 7 of the Bankruptcy Code of the bankruptcy act of 2005 primarily deals with ________.

________ is a form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts in installments over the plan period.

If the value of the collateral securing the secured loan exceeds the secured interest,the secured creditor is ________.

Which of the following is true of Chapter 13 discharge?

If a class of creditors does not accept a Chapter 11 plan of reorganization,the bankruptcy court can confirm it by using the cram-down provision.

In a Chapter 11 bankruptcy,the debtor-in-possession is not empowered to operate the debtor's business during the bankruptcy proceeding.

Which of the following constitutes the property of a Chapter 13 estate?

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

The median income test and the means test are used to determine whether a debtor qualifies to obtain a discharge of debts under Chapter 7.

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

International and World Trade Law

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