Exam 31: Bankruptcy Law

Some student loans are dischargeable in aChapter 7 bankruptcy.

​Jill believes that she should file a plan for aChapter 13 discharge in bankruptcy. A court will confirm her bankruptcy plan if it provides for

A trustee has the power to avoid preferences.

Any "person"-defined as including corporations-may be a debtor in a liquidation proceeding.

Jo files a voluntary petition for bankruptcy underChapter 7. The court will likely deny a discharge of her debts if she​

Bess wishes to appeal a decision of a bankruptcy court. Bess may appeal to​

CreditLine Inc. joins with other creditors to force Deli Sandwich Shop, a debtor, into bankruptcy. One of the goals of bankruptcy law with respect to creditors is to​

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when​

Rulings from bankruptcy courts are final-they cannot be appealed.

A preference occurs when a debtor transfers property or money favoring one creditor over others.

A repayment plan case can be initiated by the conversion of a liquidation petition.

The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies.

Zeke files a petition for bankruptcy underChapter 13. Zeke'sChapter 13 plan must provide for​

Troy files a petition for bankruptcy. Troy must include with the petition​

eGear is a retail seller of cellphones, televisions, and other consumer electronic equipment. eGear sells Fiona a $2,400 large-screen, high-definition set on a retail installment security agreement in which she pays $100 down and agrees to pay the balance in equal installments. eGear retains a security interest in the set, and perfects that interest by filing a financing statement centrally. Two months later, Fiona is in default on the payments to eGear and is involuntarily petitioned into bankruptcy by other creditors. Discuss eGear's right to repossess the TV set and whether eGear has priority over the trustee in bankruptcy to any proceeds from the disposal of the set.

A farmer cannot be forced into involuntary bankruptcy.

A trustee has the power to avoid a sale of the debtor's property.

Sunn Energy, Inc., needs funds to meet its payroll, to make other current operating expenses, and to pay its creditors. Terence, Sunn's only shareholder, loans the company $100,000 and accepts a promissory note signed on behalf of Sunn by Ulrich, the firm's accountant. Sunn's financial problems continue, however, and the firm's creditors file an involuntary petition to force it into bankruptcy. Is Terence entitled to repayment of the loan to Sunn? If so, what is the priority of the claim?

In a repayment plan case, the plan must provide for payment of all claims in full, whether or not they are entitled to priority.

Farrah buys a car from Go Motors, financing the purchase through a loan. Less than a year later, she files for bankruptcy underChapter 13. Her plan must provide that Go has a lien on the car until the entire debt is paid​