Question 1

Chapter 3 of the Bankruptcy Code deals with:

Accepted Answer

A)  the meetings of creditors. 
B)  the officers who administer the case. 
C)  the administrative powers of the officers who administer the case. 
D)  All of the above. 
A)  the meetings of creditors. 
B)  the officers who administer the case. 
C)  the administrative powers of the officers who administer the case. 
D)  All of the above. D

Question 2

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

Question 3

One type of fraudulent transfer consists of the:

Accepted Answer

A)  distribution of the debtor's property among creditors. 
B)  debtor's transferring 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 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. B

Question 4

Most student loans cannot be discharged under Chapter 13.

Accepted Answer

A) True 
 B)False

Question 5

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 6

An automatic stay ends:

Accepted Answer

A)  upon termination or dismissal of the bankruptcy case. 
B)  upon the debtor's receipt of a discharge. 
C)  only by court order. 
D)  Both (a) and (b). 
A)  upon termination or dismissal of the bankruptcy case. 
B)  upon the debtor's receipt of a discharge. 
C)  only by court order. 
D)  Both (a) and (b).

Question 7

Which of the following is not one of the three ways that the Bankruptcy Code provides for a debtor under Chapter 11 to exit the bankruptcy case ?

Accepted Answer

A)  conversion to a Chapter 7 liquidation 
B)  attachment of property to debts 
C)  confirmation of a plan of reorganization 
D)  dismissal 
A)  conversion to a Chapter 7 liquidation 
B)  attachment of property to debts 
C)  confirmation of a plan of reorganization 
D)  dismissal

Question 8

Chapter 7 applies to all debtors, with the exception of railroads, insurance companies, banks, savings and loan associations, homestead associations, and credit unions.

Accepted Answer

A) True 
 B)False

Question 9

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 10

The Bankruptcy Code grants to U.S.District Courts:

Accepted Answer

A)  original and exclusive jurisdiction over all bankruptcy cases. 
B)  original, but not exclusive, jurisdiction over civil proceedings arising under bankruptcy cases. 
C)  exclusive jurisdiction over all the debtor's property. 
D)  All of these. 
A)  original and exclusive jurisdiction over all bankruptcy cases. 
B)  original, but not exclusive, jurisdiction over civil proceedings arising under bankruptcy cases. 
C)  exclusive jurisdiction over all the debtor's property. 
D)  All of these.

Question 11

Regarding priority claims:

Accepted Answer

A)  each claimant in a priority class shares pro rata if the assets cannot satisfy all claims in the class. 
B)  employees have a priority for contributions to employee benefit plans but only to the extent that the $4,500 cap for unpaid wages has not been reached. 
C)  subordination agreements are not enforceable. 
D)  All of the above. 
E)  Both (a) and (c) are correct. 
A)  each claimant in a priority class shares pro rata if the assets cannot satisfy all claims in the class. 
B)  employees have a priority for contributions to employee benefit plans but only to the extent that the $4,500 cap for unpaid wages has not been reached. 
C)  subordination agreements are not enforceable. 
D)  All of the above. 
E)  Both (a) and (c) are correct.

Question 12

Under Chapter 11, a class that is not impaired under a plan is deemed to have accepted the plan.

Accepted Answer

A) True 
 B)False

Question 13

Creditors entitled to priority are paid before:

Accepted Answer

A)  the debtor's attorney. 
B)  secured creditors. 
C)  unsecured creditors who file their claims on time. 
D)  All of these. 
A)  the debtor's attorney. 
B)  secured creditors. 
C)  unsecured creditors who file their claims on time. 
D)  All of these.

Question 14

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 a loan secured by his new sports car.Should Fritz file for bankruptcy?

Accepted Answer

Unless Fritz has other large debts, he s

Question 15

Individual debtors must receive credit counseling before filing a bankruptcy petition under most circumstances.

Accepted Answer

A) True 
 B)False

Question 16

Under Chapter 7, the court will not grant the debtor a discharge if the debtor

Accepted Answer

A)  is not an individual. 
B)  has destroyed, concealed, or failed to keep records. 
C)  has transferred, removed, or concealed any of his property with intent to defraud his creditors within 12 months before the filing of the bankruptcy petition. 
D)  All of these. 
A)  is not an individual. 
B)  has destroyed, concealed, or failed to keep records. 
C)  has transferred, removed, or concealed any of his property with intent to defraud his creditors within 12 months before the filing of the bankruptcy petition. 
D)  All of these.

Question 17

Garnishment is only a post-judgment remedy.

Accepted Answer

A) True 
 B)False

Question 18

An automatic stay would not prevent a creditor from creating a lien against the debtor's property.

Accepted Answer

A) True 
 B)False

Question 19

More than 99 percent of all bankruptcy petitions are filed voluntarily.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?

Accepted Answer

A)  A $10,000 judgment that has not yet been executed. 
B)  Medical expenses of $25,000. 
C)  Credit card debts of $15,000 from two years ago. 
D)  All of these are dischargeable. 
A)  A $10,000 judgment that has not yet been executed. 
B)  Medical expenses of $25,000. 
C)  Credit card debts of $15,000 from two years ago. 
D)  All of these are dischargeable.

Exam 38: Bankruptcypart Ix: Regulation of Business

Chapter 3 of the Bankruptcy Code deals with:

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

One type of fraudulent transfer consists of the:

Most student loans cannot be discharged under Chapter 13.

The court will not allow any claim that:

An automatic stay ends:

Which of the following is not one of the three ways that the Bankruptcy Code provides for a debtor under Chapter 11 to exit the bankruptcy case ?

Chapter 7 applies to all debtors, with the exception of railroads, insurance companies, banks, savings and loan associations, homestead associations, and credit unions.

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

The Bankruptcy Code grants to U.S.District Courts:

Regarding priority claims:

Under Chapter 11, a class that is not impaired under a plan is deemed to have accepted the plan.

Creditors entitled to priority are paid before:

Individual debtors must receive credit counseling before filing a bankruptcy petition under most circumstances.

Under Chapter 7, the court will not grant the debtor a discharge if the debtor

Garnishment is only a post-judgment remedy.

An automatic stay would not prevent a creditor from creating a lien against the debtor's property.

More than 99 percent of all bankruptcy petitions are filed voluntarily.

Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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