Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Once a Chapter 13 plan of reorganization is confirmed, the provisions are binding on the debtor and all of his creditors.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Chapter 3 of the Bankruptcy Code deals with:

Accepted Answer

A) the meetings of creditors. 
B) proof of claims. 
C) priority of claims. 
D) debts of farmers 
A) the meetings of creditors. 
B) proof of claims. 
C) priority of claims. 
D) debts of farmers

Question 5

Section 522 of the Bankruptcy Code exempts specified property of an individual debtor from bankruptcy.What are some of these exemptions?

Accepted Answer

Dollar amounts must be adjusted for infl

Question 6

Which chapter of the Bankruptcy Code allows for the adjustment of debts of an individual with regular income?

Accepted Answer

A) Chapter 7 
B) Chapter 11 
C) Chapter 12 
D) Chapter 13 
A) Chapter 7 
B) Chapter 11 
C) Chapter 12 
D) Chapter 13

Question 7

A receiver is a disinterested person who collects and preserves the debtor's assets and income and disposes of them at the direction of the court which appointed the receiver.

Accepted Answer

A) True 
 B)False

Question 8

Edward's Excursions Inc.filed for Chapter 7 bankruptcy.It has $80,000 in equity and has the following debts outstanding:
$50,000 to Arthur secured by a boat worth $25,000.
$30,000 to Bradley secured by a truck worth $30,000.
$20,000 to Clarence unsecured.
The month before Edward closed and filed for bankruptcy, his employees earned $4,000 but did not get paid.Edward's owes $4,000 in back taxes.In the process of administering the estate, the trustee paid $5,000 in attorney fees.In what order will these claims be paid?

Accepted Answer

Secured-Arthur gets $25,000 from the boa

Question 9

In March, Margaret made a loan to Pete for $10,000.Three months later, she began to hear rumors about Pete's failing financial condition.When in July, Pete asked her to loan him an additional $2,000 to buy inventory, Margaret required a security interest in the inventory and also demanded that Pete secure the first loan with his personal automobile.In September, Pete filed for bankruptcy.Will these security interests stand up?

Accepted Answer

A) Yes, if they are properly filed 
B) Yes, since they are for antecedent debts 
C) No, both will be voidable preferences 
D) No, the security interest in the automobile would be a voidable preference 
A) Yes, if they are properly filed 
B) Yes, since they are for antecedent debts 
C) No, both will be voidable preferences 
D) No, the security interest in the automobile would be a voidable preference

Question 10

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

Accepted Answer

The trustee in bankruptcy is the represe

Question 11

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 12

One type of fraudulent transfer consists of the:

Accepted Answer

A) distribution of the debtor's property among creditors. 
B) debtor's transferring of property with actual intent to hinder her creditors. 
C) avoidance of statutory liens when debtor becomes insolvent. 
D) discharge of debts of unsecured tardy creditors. 
A) distribution of the debtor's property among creditors. 
B) debtor's transferring of property with actual intent to hinder her creditors. 
C) avoidance of statutory liens when debtor becomes insolvent. 
D) discharge of debts of unsecured tardy creditors.

Question 13

A trustee in bankruptcy may avoid which of the following?

Accepted Answer

A) Fraudulent transfers 
B) Voidable preferences 
C) Automatic stays 
D) Both fraudulent transfers and voidable preferences 
A) Fraudulent transfers 
B) Voidable preferences 
C) Automatic stays 
D) Both fraudulent transfers and voidable preferences

Question 14

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 15

Under exemptions in the Bankruptcy Code, a debtor may keep both $22,975 in equity in a residence and up to $3,675 in equity in a motor vehicle.

Accepted Answer

A) True 
 B)False

Question 16

The debtor alone decides upon the reorganization plan in Chapter 11 proceedings.

Accepted Answer

A) True 
 B)False

Question 17

Under Chapter , certain debts of individuals are not dischargeable despite the debtor's good faith.

Accepted Answer

A) 7 
B) 11 
C) 13 
D) 15 
A) 7 
B) 11 
C) 13 
D) 15

Question 18

An involuntary petition for bankruptcy can be filed with respect to a:

Accepted Answer

A) nonprofit charitable organization. 
B) partnership that invests in real estate. 
C) life insurance company. 
D) wheat farmer. 
A) nonprofit charitable organization. 
B) partnership that invests in real estate. 
C) life insurance company. 
D) wheat farmer.

Question 19

Which of the following debts would be discharged in bankruptcy?

Accepted Answer

A) A consumer credit loan for a stove 
B) Property taxes on a beach house 
C) Student loans 
D) Alimony payments past due 
A) A consumer credit loan for a stove 
B) Property taxes on a beach house 
C) Student loans 
D) Alimony payments past due

Question 20

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.

Exam 38: Bankruptcy

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

Once a Chapter 13 plan of reorganization is confirmed, the provisions are binding on the debtor and all of his creditors.

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

Chapter 3 of the Bankruptcy Code deals with:

Section 522 of the Bankruptcy Code exempts specified property of an individual debtor from bankruptcy.What are some of these exemptions?

Which chapter of the Bankruptcy Code allows for the adjustment of debts of an individual with regular income?

A receiver is a disinterested person who collects and preserves the debtor's assets and income and disposes of them at the direction of the court which appointed the receiver.

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

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

One type of fraudulent transfer consists of the:

A trustee in bankruptcy may avoid which of the following?

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:

Under exemptions in the Bankruptcy Code, a debtor may keep both $22,975 in equity in a residence and up to $3,675 in equity in a motor vehicle.

The debtor alone decides upon the reorganization plan in Chapter 11 proceedings.

Under Chapter , certain debts of individuals are not dischargeable despite the debtor's good faith.

An involuntary petition for bankruptcy can be filed with respect to a:

Which of the following debts would be discharged in bankruptcy?

A transfer of debtor's property includes:

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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