Question 1

A trustee in bankruptcy may avoid which of the following?

Accepted Answer

A)  Fraudulent transfers. 
B)  Voidable preferences. 
C)  Automatic stays. 
D)  Both fraudulent transfers and voidable preferences. 
A)  Fraudulent transfers. 
B)  Voidable preferences. 
C)  Automatic stays. 
D)  Both fraudulent transfers and voidable preferences.

Question 2

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In an assignment for the benefit of creditors, if each creditor is paid a pro rata share of his original obligation, the debtor is then discharged from any further obligation to the creditor.

Accepted Answer

A) True 
 B)False

Question 5

Able gets a judgment against Baker in state court for $50,000 on July 1.On July 15, Baker files a bankruptcy petition under Chapter 7.In this case:

Accepted Answer

A)  Able is a lien creditor. 
B)  unsecured creditors will share proportionately with Able. 
C)  the judgment is a preferential transfer that will be invalidated by the trustee. 
D)  Both (a) and (b) are true. 
A)  Able is a lien creditor. 
B)  unsecured creditors will share proportionately with Able. 
C)  the judgment is a preferential transfer that will be invalidated by the trustee. 
D)  Both (a) and (b) are true.

Question 6

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 7

The doctrine of subordination of claims might result in two unsecured creditors getting unequal proportions of their debts paid.

Accepted Answer

A) True 
 B)False

Question 8

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 9

If the debtor contests the involuntary petition for bankruptcy, the court must enter an order for relief against the debtor.

Accepted Answer

A) True 
 B)False

Question 10

Confirmation of a plan for reorganization under Chapter 13 may be given only if:

Accepted Answer

A)  the plan complies with applicable law and is given in good faith. 
B)  the plan provides for payments longer than three years. 
C)  the debtor remains in possession of the estate. 
D)  all of the creditors agree to accept it. 
A)  the plan complies with applicable law and is given in good faith. 
B)  the plan provides for payments longer than three years. 
C)  the debtor remains in possession of the estate. 
D)  all of the creditors agree to accept it.

Question 11

The 2005 Act establishes a means test which determines a creditor's eligibility for a priority claim.

Accepted Answer

A) True 
 B)False

Question 12

The debtor has an absolute right to have his bankruptcy case dismissed, whether the case is under Chapter 7, 11, or 13.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

In bankruptcy law, an insider may include:

Accepted Answer

A)  a relative. 
B)  a general or limited partner of the debtor. 
C)  the trustee. 
D)  Both (a) and (b). 
A)  a relative. 
B)  a general or limited partner of the debtor. 
C)  the trustee. 
D)  Both (a) and (b).

Question 16

Under the Bankruptcy Act, the debtor must file which of the following?

Accepted Answer

A)  A list of creditors. 
B)  Copies of tax returns for the previous five years. 
C)  A list of family members and persons who might be considered "insiders." 
D)  All of these. 
A)  A list of creditors. 
B)  Copies of tax returns for the previous five years. 
C)  A list of family members and persons who might be considered "insiders." 
D)  All of these.

Question 17

Which of the following is NOT true of United States trustees:

Accepted Answer

A)  are government officials appointed by the U.S. Attorney General. 
B)  have administrative responsibilities in bankruptcy cases in almost all of the districts. 
C)  select bankruptcy trustees. 
D)  are the same as bankruptcy trustees. 
A)  are government officials appointed by the U.S. Attorney General. 
B)  have administrative responsibilities in bankruptcy cases in almost all of the districts. 
C)  select bankruptcy trustees. 
D)  are the same as bankruptcy trustees.

Question 18

A writ of execution is issued after a judgment against the debtor is entered in court.

Accepted Answer

A) True 
 B)False

Question 19

A plan of reorganization under Chapter 13 will be confirmed when the:

Accepted Answer

A)  debtor has not been discharged before. 
B)  unsecured creditors are not discharged. 
C)  unsecured creditors receive the same amount as the secured creditors. 
D)  unsecured creditors receive at least as much as they would have if the debtor had liquidated. 
A)  debtor has not been discharged before. 
B)  unsecured creditors are not discharged. 
C)  unsecured creditors receive the same amount as the secured creditors. 
D)  unsecured creditors receive at least as much as they would have if the debtor had liquidated.

Question 20

Monica's husband is an accountant who keeps the books for her business.When it goes bankrupt, will Monica's husband's claim for services be allowed by the bankruptcy courts?

Accepted Answer

A)  No, since he is an insider. 
B)  No, because it would be difficult to prove that services were actually rendered. 
C)  Yes, but only up to the reasonable value. 
D)  Yes, as long as he is not an officer of the corporation. 
A)  No, since he is an insider. 
B)  No, because it would be difficult to prove that services were actually rendered. 
C)  Yes, but only up to the reasonable value. 
D)  Yes, as long as he is not an officer of the corporation.

Exam 38: Bankruptcypart Ix: Regulation of Business

A trustee in bankruptcy may avoid which of the following?

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

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

In an assignment for the benefit of creditors, if each creditor is paid a pro rata share of his original obligation, the debtor is then discharged from any further obligation to the creditor.

Able gets a judgment against Baker in state court for $50,000 on July 1.On July 15, Baker files a bankruptcy petition under Chapter 7.In this case:

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?

The doctrine of subordination of claims might result in two unsecured creditors getting unequal proportions of their debts paid.

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

If the debtor contests the involuntary petition for bankruptcy, the court must enter an order for relief against the debtor.

Confirmation of a plan for reorganization under Chapter 13 may be given only if:

The 2005 Act establishes a means test which determines a creditor's eligibility for a priority claim.

The debtor has an absolute right to have his bankruptcy case dismissed, whether the case is under Chapter 7, 11, or 13.

Which of the following debts would be discharged in bankruptcy?

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

In bankruptcy law, an insider may include:

Under the Bankruptcy Act, the debtor must file which of the following?

Which of the following is NOT true of United States trustees:

A writ of execution is issued after a judgment against the debtor is entered in court.

A plan of reorganization under Chapter 13 will be confirmed when the:

Monica's husband is an accountant who keeps the books for her business.When it goes bankrupt, will Monica's husband's claim for services be allowed by the bankruptcy courts?

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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