Question 1

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Accepted Answer

A) True 
 B)False

Question 2

Able has an allowed claim of $5,000 against the estate of Wallace and has a security interest in his art collection in the amount of $3,000 of the $5,000 claim. Able:

Accepted Answer

A)  will recover nothing in the bankruptcy proceeding. 
B)  will recover $5,000 in the bankruptcy proceeding. 
C)  has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D)  has a secured claim in the amount of $5,000. 
A)  will recover nothing in the bankruptcy proceeding. 
B)  will recover $5,000 in the bankruptcy proceeding. 
C)  has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D)  has a secured claim in the amount of $5,000.

Question 3

All of the following are dischargeable in bankruptcy EXCEPT:

Accepted Answer

A)  an unsecured note to a bank. 
B)  a car loan. 
C)  alimony and child support. 
D)  a court judgment against the debtor. 
A)  an unsecured note to a bank. 
B)  a car loan. 
C)  alimony and child support. 
D)  a court judgment against the debtor.

Question 4

The court will order the appointment of a trustee in a Chapter 11 proceeding only for cause or if the appointment is in the interests of creditors or equity security holders.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

Accepted Answer

A)  Writ of execution 
B)  Garnishment 
C)  Attachment 
D)  Supplementary proceeding 
A)  Writ of execution 
B)  Garnishment 
C)  Attachment 
D)  Supplementary proceeding

Question 6

Barb loaned Mark $500, which Mark agreed to repay on January 15, 2011. If Mark filed a voluntary petition of bankruptcy on August 1, 2010, Barb had a claim as a creditor.

Accepted Answer

A) True 
 B)False

Question 7

Under the Bankruptcy Code's provisions for proof of claims, a court may not allow any claim that is:

Accepted Answer

A)  unenforceable against the debtor or his property. 
B)  for matured interest. 
C)  for reasonable insider fees. 
D)  unsecured. 
A)  unenforceable against the debtor or his property. 
B)  for matured interest. 
C)  for reasonable insider fees. 
D)  unsecured.

Question 8

A transfer of debtor's property includes:

Accepted Answer

A)  retention of title as a security interest. 
B)  only a voluntary disposition of property. 
C)  only a direct interest in property. 
D)  only modes of disposing of property, or an interest therein, specified in the Bankruptcy Code. 
A)  retention of title as a security interest. 
B)  only a voluntary disposition of property. 
C)  only a direct interest in property. 
D)  only modes of disposing of property, or an interest therein, specified in the Bankruptcy Code.

Question 9

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

Accepted Answer

A) True 
 B)False

Question 10

In a Chapter 7 proceeding, an unsecured creditor who files a claim with the court after the deadline because he is too busy planning and going on a vacation would be totally unable to collect.

Accepted Answer

A) True 
 B)False

Question 11

A debtor may not file a plan at any time in a Chapter 11 reorganization.

Accepted Answer

A) True 
 B)False

Question 12

For bankruptcy purposes, insolvency means that debts are greater than assets.

Accepted Answer

A) True 
 B)False

Question 13

About half of all bankruptcy petitions are involuntary petitions.

Accepted Answer

A) True 
 B)False

Question 14

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some, but not all other creditors, the claims of the same rank share the money on a pro rata basis.

Accepted Answer

A) True 
 B)False

Question 15

Duties of a trustee in a case under Chapter 11 include all but which of the following?

Accepted Answer

A)  To examine all proofs of claims 
B)  To provide the court with financial reports of the debtor's business operations 
C)  To investigate the financial condition of the debtor 
D)  To file a list of creditors 
A)  To examine all proofs of claims 
B)  To provide the court with financial reports of the debtor's business operations 
C)  To investigate the financial condition of the debtor 
D)  To file a list of creditors

Question 16

A court may confirm a Chapter 11 plan of reorganization that is not accepted by all classes of creditors if:

Accepted Answer

A)  the court determines the plan does not discriminate unfairly and the plan is fair and equitable. 
B)  the plan does not provide for less than the amount the nonaccepting class bargained for. 
C)  the court determines that it is the only feasible plan, even if it is not accepted by any classes of claims. 
D)  the plan includes the creditors' rights in a logical manner. 
A)  the court determines the plan does not discriminate unfairly and the plan is fair and equitable. 
B)  the plan does not provide for less than the amount the nonaccepting class bargained for. 
C)  the court determines that it is the only feasible plan, even if it is not accepted by any classes of claims. 
D)  the plan includes the creditors' rights in a logical manner.

Question 17

A court will not grant a discharge under Chapter 7 to a debtor who:

Accepted Answer

A)  has been granted a Chapter 7 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  is an individual. 
A)  has been granted a Chapter 7 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  is an individual.

Question 18

The debtor is presumed to have been insolvent on and during what period of time immediately preceding the date on which the petition was filed?

Accepted Answer

A)  Thirty days 
B)  Sixty days 
C)  Ninety days 
D)  Six months 
A)  Thirty days 
B)  Sixty days 
C)  Ninety days 
D)  Six months

Question 19

A fraudulent transfer made on or within two years prior to filing a petition for bankruptcy can be avoided by the trustee.

Accepted Answer

A) True 
 B)False

Question 20

An automatic stay will prevent a creditor from creating a lien against the debtor's property.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcy

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Able has an allowed claim of $5,000 against the estate of Wallace and has a security interest in his art collection in the amount of $3,000 of the $5,000 claim. Able:

All of the following are dischargeable in bankruptcy EXCEPT:

The court will order the appointment of a trustee in a Chapter 11 proceeding only for cause or if the appointment is in the interests of creditors or equity security holders.

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

Barb loaned Mark $500, which Mark agreed to repay on January 15, 2011. If Mark filed a voluntary petition of bankruptcy on August 1, 2010, Barb had a claim as a creditor.

Under the Bankruptcy Code's provisions for proof of claims, a court may not allow any claim that is:

A transfer of debtor's property includes:

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

In a Chapter 7 proceeding, an unsecured creditor who files a claim with the court after the deadline because he is too busy planning and going on a vacation would be totally unable to collect.

A debtor may not file a plan at any time in a Chapter 11 reorganization.

For bankruptcy purposes, insolvency means that debts are greater than assets.

About half of all bankruptcy petitions are involuntary petitions.

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some, but not all other creditors, the claims of the same rank share the money on a pro rata basis.

Duties of a trustee in a case under Chapter 11 include all but which of the following?

A court may confirm a Chapter 11 plan of reorganization that is not accepted by all classes of creditors if:

A court will not grant a discharge under Chapter 7 to a debtor who:

The debtor is presumed to have been insolvent on and during what period of time immediately preceding the date on which the petition was filed?

A fraudulent transfer made on or within two years prior to filing a petition for bankruptcy can be avoided by the trustee.

An automatic stay will prevent a creditor from creating a lien against the debtor's property.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

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Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

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Introduction to Sales and Leases

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Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

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Form and Content

Transfer and Holder in Due Course

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Formation and Internal Relations of General Partnerships

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Limited Partnerships and Limited Liability Companies

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Fundamental Changes

Secured Transactions and Suretyship

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Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

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the Legal Environment of Business

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Negotiable Instruments

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