Question 1

A trustee in bankruptcy under Chapter 7 may sell the property of the debtor's estate.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Voidable preferences include all of the following EXCEPT:

Accepted Answer

A)  a transfer of property of the debtor to or for the benefit of a creditor. 
B)  payment of taxes owed to a governmental unit. 
C)  a transfer of property while the debtor was insolvent. 
D)  a transfer that enables a creditor to receive more than he would have received under Chapter 7. 
A)  a transfer of property of the debtor to or for the benefit of a creditor. 
B)  payment of taxes owed to a governmental unit. 
C)  a transfer of property while the debtor was insolvent. 
D)  a transfer that enables a creditor to receive more than he would have received under Chapter 7.

Question 4

In a Chapter 11 or 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

Accepted Answer

A) True 
 B)False

Question 5

An involuntary petition for bankruptcy can be filed against a:

Accepted Answer

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

Question 6

Which chapter of the Bankruptcy Act 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 court-supervised procedure in which a trustee sells the debtor's nonexempt assets and distributes the proceeds to creditors in accordance with the provisions of the Bankruptcy Code is called:

Accepted Answer

A)  discharge 
B)  reorganization 
C)  liquidation 
D)  distribution 
A)  discharge 
B)  reorganization 
C)  liquidation 
D)  distribution

Question 8

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 9

The bankruptcy definition of "insolvency" is a financial condition such that the sum of one's debts exceeds the sum of all one's property at fair valuation.

Accepted Answer

A) True 
 B)False

Question 10

What are the duties of a trustee under Chapter 7?

Accepted Answer

A)  To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B)  To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C)  To rehabilitate the accounts of the debtor. 
D)  (a) and (c), but not (b). 
E)  (a) and (b), but not (c). 
A)  To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B)  To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C)  To rehabilitate the accounts of the debtor. 
D)  (a) and (c), but not (b). 
E)  (a) and (b), but not (c).

Question 11

The Packer Video Company files for Chapter 7 bankruptcy.Its only non-exempt asset is a piece of equipment valued at $15,000.The claims that have been approved by the trustee are as follows:
(1) $2,500 in expenses of the trustee in the administration of the estate.
(2) $4,000 in wages, salaries, and commissions earned by employees within ninety days before the filing of the bankruptcy petition and the cessation of the business.
(3) $500 in employment taxes owed to the state.
(4) Unsecured claims in the amount of $10,000.
(5) A perfected security interest in the amount of $2,000 which is held by First Bank and which is secured by the item of equipment.
How much money will be available to pay the general unsecured creditors who have no priority?

Accepted Answer

A)  $15,000 
B)  $13,000 
C)  $10,500 
D)  $6,000 
E)  No money will be available to pay the general unsecured creditors. 
A)  $15,000 
B)  $13,000 
C)  $10,500 
D)  $6,000 
E)  No money will be available to pay the general unsecured creditors.

Question 12

Once a Chapter 13 plan has been confirmed, it may:

Accepted Answer

A)  be modified at the debtor's request but only if the trustee agrees. 
B)  be modified only if all unsecured creditors agree. 
C)  not be modified. 
D)  be modified at the request of the debtor, the trustee, or a holder of an unsecured claim. 
A)  be modified at the debtor's request but only if the trustee agrees. 
B)  be modified only if all unsecured creditors agree. 
C)  not be modified. 
D)  be modified at the request of the debtor, the trustee, or a holder of an unsecured claim.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)  7 
B)  11 
C)  13 
D)  All of the above. 
A)  7 
B)  11 
C)  13 
D)  All of the above.

Question 16

Bankruptcy legislation serves a dual purpose.What are these purposes?

Accepted Answer

Bankruptcy legislation serves a dual pur

Question 17

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include:

Accepted Answer

A)  compositions. 
B)  non-statutory assignments for the benefit of creditors. 
C)  receiverships under the direction of a court with equity powers. 
D)  All of these. 
A)  compositions. 
B)  non-statutory assignments for the benefit of creditors. 
C)  receiverships under the direction of a court with equity powers. 
D)  All of these.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 20

Federal district courts may hear all matters collateral to the bankruptcy, even if these matters are not normally permitted to be brought in federal court.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcypart Ix: Regulation of Business

A trustee in bankruptcy under Chapter 7 may sell the property of the debtor's estate.

An involuntary petition in bankruptcy:

Voidable preferences include all of the following EXCEPT:

In a Chapter 11 or 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

An involuntary petition for bankruptcy can be filed against a:

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

A court-supervised procedure in which a trustee sells the debtor's nonexempt assets and distributes the proceeds to creditors in accordance with the provisions of the Bankruptcy Code is called:

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

The bankruptcy definition of "insolvency" is a financial condition such that the sum of one's debts exceeds the sum of all one's property at fair valuation.

What are the duties of a trustee under Chapter 7?

Once a Chapter 13 plan has been confirmed, it may:

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

Under the 2005 Act:

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

Bankruptcy legislation serves a dual purpose.What are these purposes?

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include:

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

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Federal district courts may hear all matters collateral to the bankruptcy, even if these matters are not normally permitted to be brought in federal court.

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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