Question 1

Under what circumstances might the court reject a debtor's Chapter 13 plan?

Accepted Answer

A)  The plan requires future earnings to pay off debts. 
B)  The plan promises to pay all secured and priority claims. 
C)  The plan anticipates paying the unsecured creditors less than what they would get under Chapter 7. 
D)  The plan treats all unsecured classes equally. 
A)  The plan requires future earnings to pay off debts. 
B)  The plan promises to pay all secured and priority claims. 
C)  The plan anticipates paying the unsecured creditors less than what they would get under Chapter 7. 
D)  The plan treats all unsecured classes equally.

Question 2

Iris received a discharge under a Chapter 7 bankruptcy.She cannot receive another discharge under Chapter 7 for at least:

Accepted Answer

A)  six years after the prior filing. 
B)  eight years after the prior filing. 
C)  ten years after the prior discharge. 
D)  She cannot file another Chapter 7,but could file a Chapter 11 or 13 bankruptcy. 
A)  six years after the prior filing. 
B)  eight years after the prior filing. 
C)  ten years after the prior discharge. 
D)  She cannot file another Chapter 7,but could file a Chapter 11 or 13 bankruptcy.

Question 3

Brad was having financial difficulties and thought bankruptcy might be in his future.He transferred his sports car to his brother with the agreement that if he didn't file for bankruptcy within the next 18 months,his brother would return the car to him.Brad did file for bankruptcy in ten months.The bankruptcy trustee can bring the car back into Brad's estate for the purpose of providing assets for Brad's creditors.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a primary goal of bankruptcy:

Accepted Answer

A)  to preserve as much of the debtor's property as possible. 
B)  to divide the debtor's assets fairly between the debtor and the creditors. 
C)  to divide the debtor's assets fairly among the creditors. 
D)  All of the above. 
A)  to preserve as much of the debtor's property as possible. 
B)  to divide the debtor's assets fairly between the debtor and the creditors. 
C)  to divide the debtor's assets fairly among the creditors. 
D)  All of the above.

Question 5

Karen has filed for bankruptcy.Who has the authority to confirm or reject a plan of payment,and what factors will be considered when deciding whether to approve a repayment plan under Chapter 13?

Accepted Answer

The court has the sole authority to conf

Question 6

Forever Yours,Inc.has a secured and perfected security interest in Sally's big-screen TV.On the filing date of Sally's Chapter 7 petition,the balance of the debt owed to Forever Yours is $2,000.The value of the TV is estimated at $1,500.This means that Forever Yours:

Accepted Answer

A)  is secured for the entire debt,$2,000. 
B)  is unsecured for $500,the excess of the debt over the value of the TV. 
C)  has a high priority claim of $500.This means that Forever Yours,Inc.will be allowed $500 worth of other unsecured property before other unsecured creditors get anything. 
D)  is unsecured for the entire debt. 
A)  is secured for the entire debt,$2,000. 
B)  is unsecured for $500,the excess of the debt over the value of the TV. 
C)  has a high priority claim of $500.This means that Forever Yours,Inc.will be allowed $500 worth of other unsecured property before other unsecured creditors get anything. 
D)  is unsecured for the entire debt.

Question 7

Which of the following is a requirement for an involuntary Chapter 7 bankruptcy petition?

Accepted Answer

A)  The debtor must owe at least $150,000 in unsecured claims to the creditors who file. 
B)  The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors.If the debtor has fewer than 12 creditors,any single creditor or group can file a petition. 
C)  The creditors must have tried to help the debtor overcome the financial difficulties. 
D)  The debtor must have a majority of the creditors file the petition. 
A)  The debtor must owe at least $150,000 in unsecured claims to the creditors who file. 
B)  The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors.If the debtor has fewer than 12 creditors,any single creditor or group can file a petition. 
C)  The creditors must have tried to help the debtor overcome the financial difficulties. 
D)  The debtor must have a majority of the creditors file the petition.

Question 8

Kylie filed a Chapter 7 bankruptcy petition in which she exempted her home,valued at $125,000.Kylie can exempt her entire home from all creditors if:

Accepted Answer

A)  she claims her exemptions under the federal Bankruptcy Code. 
B)  she lives in a state that allows for an exemption amount of $125,000 or more. 
C)  she lives in a state that allows an exemption amount of $125,000 or more,she has lived in that state for at least two years prior to the bankruptcy,and there are no secured creditors with perfected liens against the home. 
D)  None of the above. 
A)  she claims her exemptions under the federal Bankruptcy Code. 
B)  she lives in a state that allows for an exemption amount of $125,000 or more. 
C)  she lives in a state that allows an exemption amount of $125,000 or more,she has lived in that state for at least two years prior to the bankruptcy,and there are no secured creditors with perfected liens against the home. 
D)  None of the above.

Question 9

Individual debtors are allowed to keep some assets in a Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

The bankruptcy Chapter designed only for individuals:

Accepted Answer

A)  Chapter 7. 
B)  Chapter 9. 
C)  Chapter 11. 
D)  Chapter 13 
A)  Chapter 7. 
B)  Chapter 9. 
C)  Chapter 11. 
D)  Chapter 13

Question 11

Agnes plans to file for bankruptcy under Chapter 7.One month prior to filing,Agnes gives Joe's Filling Station $700 to apply to her gas bill.Joe has been so kind to let her charge the gas she needed for her car over the past year.The bankruptcy trustee appointed to the case:

Accepted Answer

A)  can cancel the payment to Joe as a fraudulent transfer. 
B)  cannot cancel the payment to Joe because it is payment for an existing debt. 
C)  cannot cancel the payment to Joe because he is not an insider. 
D)  can cancel the payment to Joe as a voidable preference. 
A)  can cancel the payment to Joe as a fraudulent transfer. 
B)  cannot cancel the payment to Joe because it is payment for an existing debt. 
C)  cannot cancel the payment to Joe because he is not an insider. 
D)  can cancel the payment to Joe as a voidable preference.

Question 12

Under all chapters of the Bankruptcy Code,most of the debtor's assets are distributed to creditors and the debtor has no obligation to share future earnings with creditors.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following actions would prevent a discharge of debts under Chapter 7?

Accepted Answer

A)  Discharge under Chapters 7 or 11 within the past eight years. 
B)  Falsified records presented to bankruptcy court by debtor. 
C)  Failure to disclose assets. 
D)  All of the above would prevent a discharge of debts. 
A)  Discharge under Chapters 7 or 11 within the past eight years. 
B)  Falsified records presented to bankruptcy court by debtor. 
C)  Failure to disclose assets. 
D)  All of the above would prevent a discharge of debts.

Question 14

Which of the following would not be considered a fraudulent conveyance or a voidable preference under the provisions of the Code? Immediately prior to filing bankruptcy:

Accepted Answer

A)  debtor sells assets well below fair market price to Freddie,a friend. 
B)  debtor sells his car at a public auction,thinking that it would bring a decent price,but the car brings an amount well below fair market value. 
C)  debtor's corporation transfers assets to stockholders in lieu of cash dividends. 
D)  debtor pays $650 to "Nation on Line" for the past ten months of Internet service. 
A)  debtor sells assets well below fair market price to Freddie,a friend. 
B)  debtor sells his car at a public auction,thinking that it would bring a decent price,but the car brings an amount well below fair market value. 
C)  debtor's corporation transfers assets to stockholders in lieu of cash dividends. 
D)  debtor pays $650 to "Nation on Line" for the past ten months of Internet service.

Question 15

Mark and Cynthia work for Bryson Supply Co.If the company files for Chapter 7 bankruptcy before paying their last month of wages and benefits,will they be able to recover anything from the company?

Accepted Answer

One goal of the Bankruptcy Code is to en

Question 16

Esmeralda is a debtor in a Chapter 7 bankruptcy proceeding.Which of the following is not a duty of Esmeralda under Chapter 7?

Accepted Answer

A)  To undergo credit counseling with an approved agency before filing. 
B)  To provide a repayment schedule for the debt owed to each creditor listed on the creditor list. 
C)  To provide a list of all her assets and debts. 
D)  To provide a schedule of all her income and expenditures. 
A)  To undergo credit counseling with an approved agency before filing. 
B)  To provide a repayment schedule for the debt owed to each creditor listed on the creditor list. 
C)  To provide a list of all her assets and debts. 
D)  To provide a schedule of all her income and expenditures.

Question 17

Which of the following statements concerning a Chapter 11 reorganization plan is true?

Accepted Answer

A)  A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan. 
B)  A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair. 
C)  Only the bankruptcy court has the authority to confirm or reject the reorganization plan.Creditors do not have a right to vote on the plan. 
D)  A reorganization plan binds only the debtor and not the creditors. 
A)  A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan. 
B)  A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair. 
C)  Only the bankruptcy court has the authority to confirm or reject the reorganization plan.Creditors do not have a right to vote on the plan. 
D)  A reorganization plan binds only the debtor and not the creditors.

Question 18

In Chapter 11  Only the debtor may propose plans of reorganization.

Accepted Answer

A) True 
 B)False

Question 19

What are the three main purposes of the federal Bankruptcy Code? How are these purposes supported and fostered in the Code?

Accepted Answer

The primary goals of the Bankruptcy Code

Question 20

A Chapter 7 debtor's agreement to pay a creditor on a debt after receiving a discharge in bankruptcy is called a:

Accepted Answer

A)  voidable preference. 
B)  reaffirmation. 
C)  fresh start. 
D)  redemption. 
A)  voidable preference. 
B)  reaffirmation. 
C)  fresh start. 
D)  redemption.

Exam 16: Bankruptcy

Under what circumstances might the court reject a debtor's Chapter 13 plan?

Iris received a discharge under a Chapter 7 bankruptcy.She cannot receive another discharge under Chapter 7 for at least:

Which of the following is a primary goal of bankruptcy:

Karen has filed for bankruptcy.Who has the authority to confirm or reject a plan of payment,and what factors will be considered when deciding whether to approve a repayment plan under Chapter 13?

Forever Yours,Inc.has a secured and perfected security interest in Sally's big-screen TV.On the filing date of Sally's Chapter 7 petition,the balance of the debt owed to Forever Yours is $2,000.The value of the TV is estimated at $1,500.This means that Forever Yours:

Which of the following is a requirement for an involuntary Chapter 7 bankruptcy petition?

Kylie filed a Chapter 7 bankruptcy petition in which she exempted her home,valued at $125,000.Kylie can exempt her entire home from all creditors if:

Individual debtors are allowed to keep some assets in a Chapter 7 bankruptcy.

The bankruptcy Chapter designed only for individuals:

Agnes plans to file for bankruptcy under Chapter 7.One month prior to filing,Agnes gives Joe's Filling Station $700 to apply to her gas bill.Joe has been so kind to let her charge the gas she needed for her car over the past year.The bankruptcy trustee appointed to the case:

Under all chapters of the Bankruptcy Code,most of the debtor's assets are distributed to creditors and the debtor has no obligation to share future earnings with creditors.

Which of the following actions would prevent a discharge of debts under Chapter 7?

Which of the following would not be considered a fraudulent conveyance or a voidable preference under the provisions of the Code? Immediately prior to filing bankruptcy:

Mark and Cynthia work for Bryson Supply Co.If the company files for Chapter 7 bankruptcy before paying their last month of wages and benefits,will they be able to recover anything from the company?

Esmeralda is a debtor in a Chapter 7 bankruptcy proceeding.Which of the following is not a duty of Esmeralda under Chapter 7?

Which of the following statements concerning a Chapter 11 reorganization plan is true?

In Chapter 11 Only the debtor may propose plans of reorganization.

What are the three main purposes of the federal Bankruptcy Code? How are these purposes supported and fostered in the Code?

A Chapter 7 debtor's agreement to pay a creditor on a debt after receiving a discharge in bankruptcy is called a:

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