Exam 31: Bankruptcy Law

If the assets in a debtor's estate in bankruptcy are insufficient to pay fully all creditors, the debtor is liable for the difference.

Builders Construction files a voluntary petition for bankruptcy. In listing its assets, Builders intentionally omits certain assets, including plots of undeveloped real estate. After Builders is granted a discharge, Commercial Electric, one of Builders' unsecured creditors whose claims were discharged, learns of the fraud. Commercial Electric can​

To adjust debt and institute a repayment plan, Don, a family fisherman in the Gulf of Mexico, may file a petition in bankruptcy for relief under the Bankruptcy Code'sChapter​

Lynn, the owner of Market Sales Company, sells the firm to Nell for a note payable to Lynn for $100,000. Nell does not pay the note and files for bankruptcy underChapter 7. The debt represented by the note is​

Wild River Tours Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Wild River should file a petition in bankruptcy for relief through​

The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.

Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over another. These are​

The basic duty of a trustee is to collect the debtor's property and reduce it to money for distribution.

To supply false information on official bankruptcy schedules is a crime.

Harold files a bankruptcy petition. The resulting automatic stay will apply to Harold's payments for​

Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan. This proceeding can be initiated by a filing of a petition by​

Creditors hold judgments on overdue debts against Expert Auto Repair when the debtor receives a discharge in bankruptcy. The discharge will​

Cassie files a voluntary petition in bankruptcy for relief through a liquidation proceeding. Among her debts that will not be discharged are claims​

Payments under aChapter 13 plan must be completed within three to five years, depending on the debtor's family income.

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for​

A bankruptcy estate consists of all the debtor's interests in property currently held, wherever located.

In the distribution of the debtor's estate, unsecured creditors take priority over secured creditors.

Certain debtors may not qualify to have all debts discharged in bankruptcy.

If the circumstances indicate bad faith, a court can dismiss a debtors'Chapter 13 petition.

Bankruptcy proceedings are held in state courts.​