Exam 38: Bankruptcy

A trustee in bankruptcy may sell the property of the debtor's estate.

Margaret has $3,200 cash after selling off her television, DVD player, and computer. She has debts of $4,800 owing to the following creditors: Anna $900 Bob's Shop $1,500 Hyatt's $2,100 Jones $300 If they all agree to a composition agreement, how much will Hyatt's be able to collect?

Any debtors may seek relief under Chapter 7 of the Bankruptcy Code.

The bankruptcy court may dismiss a:

Chapter 3 of the Bankruptcy Code deals with:

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

A trustee under a Chapter 11 or 13 proceeding performs the same duties as a Chapter 7 trustee.

Baker goes into bankruptcy owing $5,000 as wages to his employees. There is enough in his estate to pay all costs of administration and enough to pay his employees, but if the employees are paid, there will be nothing left for the general creditors. Which of the following is NOT true under the above facts?

While certain debts of an individual are not dischargeable under Chapters 7, 11, and 12, all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

After reorganization, all debts are forgiven.

Which of the following would be a voidable transfer if made within 90 days of bankruptcy?

The court has the sole right to accept or reject a Chapter 11 plan of reorganization.