Exam 31: Bankruptcy Law

In a Chapter 7 proceeding, at a meeting of creditors, one of the creditors is elected to take over the debtor's assets.

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

A Chapter 13 proceeding is more expensive and complicated than a Chapter 11 or Chapter 7 proceeding.

Because the purpose of a Chapter 7 proceeding is to provide a debtor with a fresh start, a discharge under Chapter 7 frees a debtor of all of his or her debts.

Bankruptcy relief is provided under state, not federal, law.

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Businesses must be technically insolvent to file for bankruptcy relief.

Under Chapter 11, a plan to conserve and administer the debtor's assets must be submitted for acceptance and confirmation to

Anyone obligated to a creditor can declare bankruptcy.

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Shippers Dispatch Company orders office equipment from Office Outfitters, Inc., which has an unperfected security interest in the equipment until it is paid for. Meanwhile, Shippers Dispatch takes out a loan from Capital Credit, Inc., subject to a security interest in Shippers Dispatch's building and equipment, which Capital perfects. Shippers Dispatch files a bankruptcy petition under Chapter 7. If the petition is granted, in what order will Shippers Dispatch's creditors be paid?

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least

Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through

Under Chapter 7 and Chapter 11

With respect to debtors, the main goal of bankruptcy law is to