Exam 28: Bankruptcy and Reorganization

If Mable makes false representations about her financial position when she obtains an extension of credit,this will bar discharge of her debt to that creditor.

Many critics have argued that it has become too easy for individuals to file bankruptcy.What is your opinion and why? Do you think the laws themselves are too liberal,or can parties simply violate the laws too easily,such as by making fraudulent transfers that trustees and courts are not aggressive enough in going after.How would you change the bankruptcy laws if you could?

The bankruptcy estate includes all property that the petitioner receives after the petition is filed.

Which of the following types of petitions in a Chapter 7 bankruptcy constitute an order for relief?

Which of the following is true about "proof of claims?"

The 2005 Bankruptcy Act made little to no changes with regard to the satisfaction of unsecured claims.

The founders of the United States thought the plight of debtors was so important that they included a provision in the U.S.Constitution on bankruptcy.

A liquidation bankruptcy is also known as straight bankruptcy.

Bankruptcy cases are heard in federal court.

Which of the following is not a proper federal exemption under the bankruptcy laws?

The dischargeable debts under a consumer debt adjustment plan of bankruptcy are the same as those under the straight (liquidation)bankruptcy.

A fraudulent transfer of a debtor's property may not be voided by the bankruptcy court.

A proof of claim is not required to be filed by a secured creditor.

What is the purpose of allowing lawyers and accountants to have first claim on the assets of a bankruptcy estate? What are the risks and abuses that this rule could lead to?

When a class of creditors does not approve of a plan of reorganization under Chapter 11,the court can order the plan into effect:

A Chapter 12 bankruptcy is a permanent part of the Bankruptcy Code that allows family farmers and family fisherman with regular income to file a type of reorganization bankruptcy.

The term "median income" refers to that income where half of the state's families have income above the debtor's family income and half of the state's families have income below the debtor's family income.

A debtor may promise to pay a debt discharged in bankruptcy by executing:

A debtor owns a residence worth $200,000.The owner has $60,000 of equity in the home.If the debtor files for Chapter 7 bankruptcy,a trustee may use what amount of the proceeds of a home sale to pay off debts? (Assume the federal homestead exemption applies.)

The two most common types of bankruptcy filed by businesses are liquidation and reorganization.