Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

A debt is an obligation to pay money owed by a debtor to a creditor.

Accepted Answer

A) True 
 B)False

Question 4

Most student loans cannot be discharged under Chapter 13.

Accepted Answer

A) True 
 B)False

Question 5

A court will not grant a discharge under Chapter 7 to a debtor who:

Accepted Answer

A)  has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  All of these. 
A)  has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B)  has made false claims to the court. 
C)  has destroyed collateral. 
D)  All of these.

Question 6

Pre-judgment attachment permits a creditor to seize the debtor's property:

Accepted Answer

A)  to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B)  if the defendant has not paid his debts on time. 
C)  when the defendant has filed for bankruptcy. 
D)  if the defendant cannot be persuaded to come to court. 
A)  to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B)  if the defendant has not paid his debts on time. 
C)  when the defendant has filed for bankruptcy. 
D)  if the defendant cannot be persuaded to come to court.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Edith files a Chapter 7 petition in bankruptcy. She owns the following property: (1) an automobile valued at $1,800; (2) a homestead valued at $75,000, on which First Bank holds a mortgage of $60,000; (3) personal jewelry valued at $1,100; and (4) monthly disability payments of $1,000. Assuming Edith elects to use the exemptions listed in the Bankruptcy Code, what property may Edith keep?

Accepted Answer

A)  The disability payments only. 
B)  The disability payments and the homestead only. 
C)  The disability payments plus the automobile, the homestead, and the jewelry. 
D)  Nothing. She must sell all of her assets and have the proceeds distributed to the creditors, and she must turn the disability payments over to the trustee. 
A)  The disability payments only. 
B)  The disability payments and the homestead only. 
C)  The disability payments plus the automobile, the homestead, and the jewelry. 
D)  Nothing. She must sell all of her assets and have the proceeds distributed to the creditors, and she must turn the disability payments over to the trustee.

Question 9

The Bankruptcy Code exempts specified property of an individual debtor from bankruptcy. What are some of these exemptions?

Accepted Answer

Specified property would include the fol

Question 10

Under Chapter ___________, the bankruptcy estate does not include wages earned after commencement of the case.

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 11

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 12

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 13

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

Accepted Answer

A)  unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B)  unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C)  In all events. 
D)  Both (a) and (b) are alternative exceptions to the six-year rule. 
A)  unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B)  unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C)  In all events. 
D)  Both (a) and (b) are alternative exceptions to the six-year rule.

Question 14

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 15

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition, but must be insolvent to do so.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

All but which one of the following is a purpose of bankruptcy legislation?

Accepted Answer

A)  To preserve existing business relations. 
B)  To punish recalcitrant debtors. 
C)  To bring about a quick, equitable distribution of the debtor's property among creditors. 
D)  To allow rehabilitation of debtors. 
A)  To preserve existing business relations. 
B)  To punish recalcitrant debtors. 
C)  To bring about a quick, equitable distribution of the debtor's property among creditors. 
D)  To allow rehabilitation of debtors.

Question 18

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Accepted Answer

A)  a non-statutory composition. 
B)  a statutory assignment. 
C)  an equity receivership. 
D)  an automatic stay. 
A)  a non-statutory composition. 
B)  a statutory assignment. 
C)  an equity receivership. 
D)  an automatic stay.

Exam 38: Bankruptcy

Under the 2005 Act:

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

A debt is an obligation to pay money owed by a debtor to a creditor.

Most student loans cannot be discharged under Chapter 13.

A court will not grant a discharge under Chapter 7 to a debtor who:

Pre-judgment attachment permits a creditor to seize the debtor's property:

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

The Bankruptcy Code exempts specified property of an individual debtor from bankruptcy. What are some of these exemptions?

Under Chapter ___________, the bankruptcy estate does not include wages earned after commencement of the 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 Bankruptcy Code grants to U.S. District Courts:

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

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

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition, but must be insolvent to do so.

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

All but which one of the following is a purpose of bankruptcy legislation?

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

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