Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The court must confirm a plan of reorganization before it is binding on the parties.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

Accepted Answer

A)  Writ of execution. 
B)  Garnishment. 
C)  Attachment. 
D)  Supplementary proceeding. 
A)  Writ of execution. 
B)  Garnishment. 
C)  Attachment. 
D)  Supplementary proceeding.

Question 4

The court will not allow any claim that:

Accepted Answer

A)  is unenforceable against the debtor or her property. 
B)  is for insider or attorney services in excess of the reasonable value of such services. 
C)  may be offset against a debt owing the debtor. 
D)  All of these. 
A)  is unenforceable against the debtor or her property. 
B)  is for insider or attorney services in excess of the reasonable value of such services. 
C)  may be offset against a debt owing the debtor. 
D)  All of these.

Question 5

The Bankruptcy Code grants to U.S. District Courts original and exclusive jurisdiction over all bankruptcy cases.

Accepted Answer

A) True 
 B)False

Question 6

Under the 2005 Act:

Accepted Answer

A)  tax-exempt retirement accounts are included in the bankruptcy estate. 
B)  a debtor's state exemptions are governed by the law of the state where the debtor was domiciled for 730 days immediately before filing. 
C)  homestead exemptions are determined by state laws. 
D)  exempt property cannot be reached for the debtor's obligations, including domestic support obligations. 
A)  tax-exempt retirement accounts are included in the bankruptcy estate. 
B)  a debtor's state exemptions are governed by the law of the state where the debtor was domiciled for 730 days immediately before filing. 
C)  homestead exemptions are determined by state laws. 
D)  exempt property cannot be reached for the debtor's obligations, including domestic support obligations.

Question 7

The estate of a debtor includes wages earned after commencement of a Chapter 7 liquidation proceeding.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following debts would be discharged in bankruptcy?

Accepted Answer

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

Question 9

Discharge relieves the debtor in bankruptcy from liability for all of his debts.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  All of these. 
A)  has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  All of these.

Question 11

A composition would bind all of the debtor's creditors to the settlement.

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 $1,300 diamond ring. 
C)  A $400 cashmere sweater. 
D)  A $8,000 SUV. 
A)  $500 received in child support. 
B)  A $1,300 diamond ring. 
C)  A $400 cashmere sweater. 
D)  A $8,000 SUV.

Question 13

An involuntary petition in bankruptcy:

Accepted Answer

A)  eliminates the operation of an automatic stay. 
B)  may only be filed under Chapter 7 or 11. 
C)  must be filed by the trustee. 
D)  eliminates the need for the court to order a discharge. 
A)  eliminates the operation of an automatic stay. 
B)  may only be filed under Chapter 7 or 11. 
C)  must be filed by the trustee. 
D)  eliminates the need for the court to order a discharge.

Question 14

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

Accepted Answer

A)  An exchange for new value. 
B)  A consumer's transfer of property valued at $500. 
C)  A payment made in the ordinary course of business. 
D)  All of these are voidable transfers. 
A)  An exchange for new value. 
B)  A consumer's transfer of property valued at $500. 
C)  A payment made in the ordinary course of business. 
D)  All of these are voidable transfers.

Question 15

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 bring about a quick, equitable distribution of the debtor's property among creditors. 
D)  To allow rehabilitation of debtors. 
A)  To preserve existing business relations. 
B)  To punish recalcitrant debtors. 
C)  To bring about a quick, equitable distribution of the debtor's property among creditors. 
D)  To allow rehabilitation of debtors.

Question 16

Pre-judgment attachment permits a creditor to seize the debtor's property:

Accepted Answer

A)  to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B)  if the defendant has not paid his debts on time. 
C)  when the defendant has filed for bankruptcy. 
D)  if the defendant cannot be persuaded to come to court. 
A)  to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B)  if the defendant has not paid his debts on time. 
C)  when the defendant has filed for bankruptcy. 
D)  if the defendant cannot be persuaded to come to court.

Question 17

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 18

Powell has loaned Owen $500, which Owen agreed to repay on on a specified day next year. If Owen files a voluntary petition of bankruptcy four months prior to that date, Powell has a claim as a creditor.

Accepted Answer

A) True 
 B)False

Question 19

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Accepted Answer

A) True 
 B)False

Question 20

A debt is an obligation to pay money owed by a debtor to a creditor.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcy

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

The court must confirm a plan of reorganization before it is binding on the parties.

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

The court will not allow any claim that:

The Bankruptcy Code grants to U.S. District Courts original and exclusive jurisdiction over all bankruptcy cases.

Under the 2005 Act:

The estate of a debtor includes wages earned after commencement of a Chapter 7 liquidation proceeding.

Which of the following debts would be discharged in bankruptcy?

Discharge relieves the debtor in bankruptcy from liability for all of his debts.

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

A composition would bind all of the debtor's creditors to the settlement.

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

An involuntary petition in bankruptcy:

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

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

Pre-judgment attachment permits a creditor to seize the debtor's property:

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?

Powell has loaned Owen $500, which Owen agreed to repay on on a specified day next year. If Owen files a voluntary petition of bankruptcy four months prior to that date, Powell has a claim as a creditor.

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

A debt is an obligation to pay money owed by a debtor to a creditor.

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