Exam 34: Bankruptcy

In a Chapter 7 proceeding, the bankruptcy trustee distributes the bankruptcy estate to creditors with proofs of claim.

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

Ava files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution. Brian most likely is

Under Chapter 11, a reorganization plan must

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

In a Chapter 13 proceeding, the debtor retains possession of his or her assets.

Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to remain and not be discharged include

A debtor cannot challenge an involuntary bankruptcy petition.

In a Chapter 11 proceeding, for an individual debtor, the court may order discharge at any time after the plan is confirmed.

Under Chapter 7, a discharge is most likely to be denied if the debtor

In a Chapter 7 proceeding, the primary effect of a discharge is to set aside any prior judgment on a discharged debt and to prohibit any action to collect it.

Under Chapter 7, once the proceeds of the bankruptcy estate have been distributed, all or most of the debtor's remaining debts

A bankruptcy trustee is accountable for

In a Chapter 11 proceeding, a debtor corporation and its creditors agree on a plan under which the corporation pays a portion of its debt.

Debts that remain after a Chapter 7 liquidation are not discharged, and the debtor retains his or her obligation to pay them.

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

Businesses must be insolvent to file for bankruptcy relief.

In Chapter 11 proceedings, a debtor is allowed to continue in business.

If all classes of creditors accept the debtor's Chapter 11 plan, the court cannot refuse to confirm it.

In a Chapter 7 proceeding if there is not enough money to pay all the creditors, it is given back to the debtor.