Question 1

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 2

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 3

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 4

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

Question 5

Lowell recently graduated from college with a degree in business administration, but has been unable to find a job. He decided to file a Chapter 7 petition with the Bankruptcy Court. He has the following assets: 
a. $1,200 in equity in a new car which he purchased with a loan from the bank. 
b. $5,000 in equity in his residence, a condominium secured by a mortgage. 
c. $100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant. 
d. $750 in business administration books including a hardly used copy of Mann and Roberts, Essentials of Business Law and the Legal Environment. 
e. a $1,000 retainer for his teeth prescribed by his orthodontist. 
His debts are as follows: 
a. $10,000 in student loans. 
b. $20,000 to the bank for his car, which is secured by the car. 
c. $5,000 in unsecured credit card debts. 
Under federal exemptions, what can he keep? What will each of the creditors receive? Explain.

Accepted Answer

Assets-Lowell can keep up to $21,625 in

Question 6

Bill has loaned Mark $500, which Mark agreed to repay on January 15, 2012. If Mark files a voluntary petition of bankruptcy on August 1, 2011, Bill has a claim as a creditor.

Accepted Answer

A) True 
 B)False

Question 7

Garnishment is only a post-judgment remedy.

Accepted Answer

A) True 
 B)False

Question 8

A debtor may not convert a Chapter 7 case to a Chapter 11 or 13 case.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

Bankruptcy legislation serves a dual pur

Question 11

A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee.

Accepted Answer

A) True 
 B)False

Question 12

Ken loaned Barbara $8,000 and took back a note secured by Barbara's car. If Barbara files for bankruptcy when the value of the car is $4,500, what is Ken's status? He has a (n):

Accepted Answer

A)  secured claim for $4,500. 
B)  unsecured claim for $8,000. 
C)  unsecured claim for $4,500. 
D)  secured claim for $8,000. 
A)  secured claim for $4,500. 
B)  unsecured claim for $8,000. 
C)  unsecured claim for $4,500. 
D)  secured claim for $8,000.

Question 13

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 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

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.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

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 20

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Accepted Answer

A)  Good faith. 
B)  Feasibility. 
C)  Be accepted by all creditors. 
D)  Cash payments for certain classes of creditors. 
A)  Good faith. 
B)  Feasibility. 
C)  Be accepted by all creditors. 
D)  Cash payments for certain classes of creditors.

Exam 38: Bankruptcy

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

Voidable preferences include all of the following EXCEPT:

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

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.

Bill has loaned Mark $500, which Mark agreed to repay on January 15, 2012. If Mark files a voluntary petition of bankruptcy on August 1, 2011, Bill has a claim as a creditor.

Garnishment is only a post-judgment remedy.

A debtor may not convert a Chapter 7 case to a Chapter 11 or 13 case.

What are the duties of a trustee under Chapter 7?

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

A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee.

Ken loaned Barbara $8,000 and took back a note secured by Barbara's car. If Barbara files for bankruptcy when the value of the car is $4,500, what is Ken's status? He has a (n):

The court will not allow any claim that:

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

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

In bankruptcy law, an insider may include:

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

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

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

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 Remedies

Introduction to Sales and Leases

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Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

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Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

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International Business Law

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

Interests in Real Property

Transfer and Control of Real Property

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