Question 1

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 2

Kent loaned Barbara $8,000 and took back a note secured by Barbara's car.If Barbara files for bankruptcy when the value of the car is $4,500, what is Kent's status? He has:

Accepted Answer

A) a secured claim for $4,500. 
B) an unsecured claim for $8,000. 
C) an unsecured claim for $4,500. 
D) a secured claim for $8,000. 
A) a secured claim for $4,500. 
B) an unsecured claim for $8,000. 
C) an unsecured claim for $4,500. 
D) a secured claim for $8,000.

Question 3

Chapter 12 of the Bankruptcy Code applies to individuals or couples engaged in farming if 50 percent of their gross income is from farming and aggregate debts do not exceed $1 million.

Accepted Answer

A) True 
 B)False

Question 4

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Accepted Answer

A) True 
 B)False

Question 5

A plan of reorganization under Chapter 13 will be confirmed when:

Accepted Answer

A) the debtor has not been discharged before. 
B) the unsecured creditors are not discharged. 
C) the unsecured creditors receive the same amount as the secured creditors. 
D) the unsecured creditors receive at least as much as they would have if the debtor had liquidated. 
A) the debtor has not been discharged before. 
B) the unsecured creditors are not discharged. 
C) the unsecured creditors receive the same amount as the secured creditors. 
D) the unsecured creditors receive at least as much as they would have if the debtor had liquidated.

Question 6

Fritz is seriously considering bankruptcy because he has a large number of outstanding debts, the principal ones of which are as follows: (1) he owes his ex-wife $25,000 in back alimony and child support; (2) he owes $20,000 in guaranteed student loans; (3) he has a lawsuit pending against him in which his ex-girlfriend is asking for $50,000 in damages (the suit is based upon the intentional tort of battery and arises from an incident in which Fritz got mad at his girlfriend and hit her); and (4) he owes the First Bank $20,000 for the loan securing his new sports car.Should Fritz file for bankruptcy?

Accepted Answer

Unless Fritz has other large debts, he s

Question 7

One creditor of a debtor may file a bankruptcy petition as long as the debtor owes him more than $5,000 in unsecured claims.

Accepted Answer

A) True 
 B)False

Question 8

Voidable preferences include all of the following EXCEPT:

Accepted Answer

A) a transfer of property of the debtor to or for the benefit of a creditor. 
B) payment of taxes owed to a governmental unit. 
C) a transfer of the debtor's property while the debtor was insolvent. 
D) a transfer that enables a creditor to receive more than he would have received under Chapter 7. 
A) a transfer of property of the debtor to or for the benefit of a creditor. 
B) payment of taxes owed to a governmental unit. 
C) a transfer of the debtor's property while the debtor was insolvent. 
D) a transfer that enables a creditor to receive more than he would have received under Chapter 7.

Question 9

When may a trustee not avoid a transfer?

Accepted Answer

A) When such payment is of a debt incurred in the ordinary course of business or financial affairs of the debtor and the transferee 
B) When such payment is not made in the ordinary course of business or financial affairs of the debtor and transferee 
C) When the transfer is made according to extraordinary business terms 
D) When the transfer is made for new value. 
A) When such payment is of a debt incurred in the ordinary course of business or financial affairs of the debtor and the transferee 
B) When such payment is not made in the ordinary course of business or financial affairs of the debtor and transferee 
C) When the transfer is made according to extraordinary business terms 
D) When the transfer is made for new value.

Question 10

All but which one of the following is a purpose of bankruptcy legislation?

Accepted Answer

A) To preserve existing business relations 
B) To punish recalcitrant debtors 
C) To fairly divide the assets among creditors 
D) To allow rehabilitation of debtors 
A) To preserve existing business relations 
B) To punish recalcitrant debtors 
C) To fairly divide the assets among creditors 
D) To allow rehabilitation of debtors

Question 11

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 12

All but which one of the following would be exempt from bankruptcy under the federal law?

Accepted Answer

A) $500 received in child support 
B) A $300 cocktail ring 
C) A $200 cashmere sweater 
D) A $10,000 car 
A) $500 received in child support 
B) A $300 cocktail ring 
C) A $200 cashmere sweater 
D) A $10,000 car

Question 13

Garnishment is one form of pre-judgment remedy.

Accepted Answer

A) True 
 B)False

Question 14

Once a Chapter 13 plan has been confirmed, it may:

Accepted Answer

A) be modified at the debtor's request but only if the trustee agrees. 
B) be modified only if all unsecured creditors agree. 
C) not be modified. 
D) be modified at the debtor's request. 
A) be modified at the debtor's request but only if the trustee agrees. 
B) be modified only if all unsecured creditors agree. 
C) not be modified. 
D) be modified at the debtor's request.

Question 15

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 16

A debtor who files for bankruptcy can keep up to $1,550 in jewelry and all social security, veteran's, and disability
benefits under the exemptions found in the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 17

After reorganization, all debts are forgiven.

Accepted Answer

A) True 
 B)False

Question 18

A debtor has the option of using either federal or state exemptions; however, the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets at any time before filing the bankruptcy petition.

Accepted Answer

A) True 
 B)False

Question 19

A debtor may not receive a discharge under Chapter 7 if he or she received a Chapter 13 discharge within the past six years in most cases.

Accepted Answer

A) True 
 B)False

Question 20

The doctrine of subordination of claims might result in two unsecured creditors getting unequal proportions of their debts paid.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcy

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

Kent loaned Barbara $8,000 and took back a note secured by Barbara's car.If Barbara files for bankruptcy when the value of the car is $4,500, what is Kent's status? He has:

Chapter 12 of the Bankruptcy Code applies to individuals or couples engaged in farming if 50 percent of their gross income is from farming and aggregate debts do not exceed $1 million.

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

A plan of reorganization under Chapter 13 will be confirmed when:

One creditor of a debtor may file a bankruptcy petition as long as the debtor owes him more than $5,000 in unsecured claims.

Voidable preferences include all of the following EXCEPT:

When may a trustee not avoid a transfer?

All but which one of the following is a purpose of bankruptcy legislation?

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

All but which one of the following would be exempt from bankruptcy under the federal law?

Garnishment is one form of pre-judgment remedy.

Once a Chapter 13 plan has been confirmed, it may:

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 who files for bankruptcy can keep up to $1,550 in jewelry and all social security, veteran's, and disability benefits under the exemptions found in the Bankruptcy Code.

After reorganization, all debts are forgiven.

A debtor has the option of using either federal or state exemptions; however, the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets at any time before filing the bankruptcy petition.

A debtor may not receive a discharge under Chapter 7 if he or she received a Chapter 13 discharge within the past six years in most cases.

The doctrine of subordination of claims might result in two unsecured creditors getting unequal proportions of their debts paid.

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

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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