Question 1

Once bankruptcy is filed, any lien placed on the home is removed automatically.

Accepted Answer

A) True 
 B)False  False

Question 2

All mortgages are automatically escrowed.

Accepted Answer

A) True 
 B)False  False

Question 3

Does a trustee's avoidance power allow for the trustee to have lien authority superior to that of a legitimate creditor?

Accepted Answer

A)  No, because the debtor and the creditor have a contractual obligation that cannot be superseded after the fact. 
B)  Yes, under the strong-arm clause, one of the trustee's avoidance powers is lien authority over that of a creditor. 
C)  No, unless the trustee can prove there was fraudulent intent. 
D)  No, if the creditor can prove that at least 30% of the debt was paid prior to filing for bankruptcy. 
A)  No, because the debtor and the creditor have a contractual obligation that cannot be superseded after the fact. 
B)  Yes, under the strong-arm clause, one of the trustee's avoidance powers is lien authority over that of a creditor. 
C)  No, unless the trustee can prove there was fraudulent intent. 
D)  No, if the creditor can prove that at least 30% of the debt was paid prior to filing for bankruptcy. B

Question 4

Describe the strong-arm clause.

Accepted Answer

The answer of Describe the strong-arm clause....

Question 5

Liens and judgments accrue interest.

Accepted Answer

A) True 
 B)False

Question 6

Auto leases are listed on Schedule __________

Accepted Answer

A)  Schedule A/B 
B)  Schedule C 
C)  Schedule F 
D)  Schedule G 
A)  Schedule A/B 
B)  Schedule C 
C)  Schedule F 
D)  Schedule G

Question 7

A deficiency judgment means the judgment is deficient because the creditor will not be able to collect on the judgment due to the debtor's lack of assets.

Accepted Answer

A)  True. In this case because the debtor has no assets, bankruptcy isn't required. 
B)  False. A deficiency judgment means a secured creditor has repossessed property and after disposing of the asset by sale, there still remains an outstanding balance. 
C)  False. A deficiency judgment means that the creditor did not follow the proper procedure in pursuing a collection matter against a debtor. 
D)  True. A deficiency judgment allows the creditor to proceed with the lawsuit even if the debtor failed to reply to the petition/complaint. 
A)  True. In this case because the debtor has no assets, bankruptcy isn't required. 
B)  False. A deficiency judgment means a secured creditor has repossessed property and after disposing of the asset by sale, there still remains an outstanding balance. 
C)  False. A deficiency judgment means that the creditor did not follow the proper procedure in pursuing a collection matter against a debtor. 
D)  True. A deficiency judgment allows the creditor to proceed with the lawsuit even if the debtor failed to reply to the petition/complaint.

Question 8

Which of the following can be categorized as the trustee's avoidance powers?

Accepted Answer

A)  Strong arm clause 
B)  Preferential transfers 
C)  Fraudulent transfers 
D)  Post-petition transfers 
E)  All of the above. 
A)  Strong arm clause 
B)  Preferential transfers 
C)  Fraudulent transfers 
D)  Post-petition transfers 
E)  All of the above.

Question 9

How do you confirm if a client's mortgage is escrowed?

Accepted Answer

The answer of How do you confirm if a client's...

Question 10

Avoidance powers refers to:

Accepted Answer

A)  The bankruptcy judge having the power to avoid certain issues in dispute so that the case is argued in the district court. 
B)  The power of the trustee to avoid certain transfers. 
C)  The power of the Bankruptcy Appellate Panel to avoid cases that should be argued before the District Courts of Appeals. 
D)  The power of the District Court to avoid bankruptcy related issues so that the matter is heard before the bankruptcy court in that district. 
A)  The bankruptcy judge having the power to avoid certain issues in dispute so that the case is argued in the district court. 
B)  The power of the trustee to avoid certain transfers. 
C)  The power of the Bankruptcy Appellate Panel to avoid cases that should be argued before the District Courts of Appeals. 
D)  The power of the District Court to avoid bankruptcy related issues so that the matter is heard before the bankruptcy court in that district.

Question 11

A car loan is listed on Schedule _____.

Accepted Answer

A)  Schedule A/B 
B)  Schedule C 
C)  Schedule D 
A)  Schedule A/B 
B)  Schedule C 
C)  Schedule D

Question 12

Name two credible online sources to appraise vehicles.

Accepted Answer

The answer of Name two credible online sources to appraise...

Question 13

Maria wants to file for Chapter 7 to eliminate $25,000 in credit cards. She also wants to surrender her car which has a $27,500 balance. Maria's car will be listed on Schedule ____.

Accepted Answer

A)  Schedule A/B 
B)  Schedule D 
C)  Schedule F 
D)  Statement of Intentions 
A)  Schedule A/B 
B)  Schedule D 
C)  Schedule F 
D)  Statement of Intentions

Question 14

A divorce case won't affect a bankruptcy since jurisdiction in family law cases is in state court while bankruptcy is in federal court.

Accepted Answer

A) True 
 B)False

Question 15

A trustee's avoidance powers gives the trustee the authority to void a preferential transfer from nine months ago to an insider.

Accepted Answer

A)  Only if the transfer of property was made with the intent to defraud the bankruptcy estate. 
B)  No, as the transfer was not made within ninety days of filing for bankruptcy. 
C)  No, if there was a legitimate debt owed to the insider. 
D)  Yes, because preferential transfers to an insider date back one-year pre-petition 
A)  Only if the transfer of property was made with the intent to defraud the bankruptcy estate. 
B)  No, as the transfer was not made within ninety days of filing for bankruptcy. 
C)  No, if there was a legitimate debt owed to the insider. 
D)  Yes, because preferential transfers to an insider date back one-year pre-petition

Question 16

Which of the following is considered personal property and is listed in the petition?

Accepted Answer

A)  clothing. 
B)  jewelry. 
C)  bank accounts. 
D)  retirement accounts. 
E)  all of the above. 
A)  clothing. 
B)  jewelry. 
C)  bank accounts. 
D)  retirement accounts. 
E)  all of the above.

Question 17

The expense of taxes and insurance are listed on Schedule _____.

Accepted Answer

A)  G 
B)  H 
C)  I. 
D)  J. 
A)  G 
B)  H 
C)  I. 
D)  J.

Question 18

When a debtor has fallen behind on secured debt payments, the debtor is automatically required to file Chapter 13.

Accepted Answer

A) True 
 B)False

Question 19

Your client borrowed $2,500 against his retirement account and is making payments in the amount of $100 per month towards that debt. You should ________.

Accepted Answer

A)  List the debt on Schedule J as it is an expense. 
B)  List the debt on Schedule D as it is a secured debt. 
C)  Both Answers a and c 
D)  Do nothing because the retirement account belongs to the debtor and legally, he can't loan himself money. 
A)  List the debt on Schedule J as it is an expense. 
B)  List the debt on Schedule D as it is a secured debt. 
C)  Both Answers a and c 
D)  Do nothing because the retirement account belongs to the debtor and legally, he can't loan himself money.

Question 20

If a vehicle loan is titled in the debtor's name, but a third party makes the monthly payment, then the debt is not listed in the petition.

Accepted Answer

A) True 
 B)False

Exam 6: Bankruptcy Intake Continued

Once bankruptcy is filed, any lien placed on the home is removed automatically.

All mortgages are automatically escrowed.

Does a trustee's avoidance power allow for the trustee to have lien authority superior to that of a legitimate creditor?

Describe the strong-arm clause.

Liens and judgments accrue interest.

Auto leases are listed on Schedule __________

A deficiency judgment means the judgment is deficient because the creditor will not be able to collect on the judgment due to the debtor's lack of assets.

Which of the following can be categorized as the trustee's avoidance powers?

How do you confirm if a client's mortgage is escrowed?

Avoidance powers refers to:

A car loan is listed on Schedule _____.

Name two credible online sources to appraise vehicles.

Maria wants to file for Chapter 7 to eliminate $25,000 in credit cards. She also wants to surrender her car which has a $27,500 balance. Maria's car will be listed on Schedule ____.

A divorce case won't affect a bankruptcy since jurisdiction in family law cases is in state court while bankruptcy is in federal court.

A trustee's avoidance powers gives the trustee the authority to void a preferential transfer from nine months ago to an insider.

Which of the following is considered personal property and is listed in the petition?

The expense of taxes and insurance are listed on Schedule _____.

When a debtor has fallen behind on secured debt payments, the debtor is automatically required to file Chapter 13.

Your client borrowed $2,500 against his retirement account and is making payments in the amount of $100 per month towards that debt. You should ________.

If a vehicle loan is titled in the debtor's name, but a third party makes the monthly payment, then the debt is not listed in the petition.

The History of Bankruptcy Law

Overview of the Bankruptcy Code

Summary of Chapter 7 Versus Chapter 13

The Court System and the Bankruptcy Rules and Procedure

The Bankruptcy Intake

Bankruptcy Intake: Employment, Income, and Expenses

Liabilities, and Required Documents

The Bankruptcy Petition

Assets and Liabilities

Schedules AB: Personal Property and C: Exemptions

Schedules of Secured and Unsecured Creditors

Schedule I: Income

Schedule J: Expenses

Statement of Financial Affairs

Understanding Legal Options and Judgments in Debt Cases

Statement of Current Monthly Income

Means Testing Official Form 122A-2

Bankruptcy and Debt: Understanding Hardship Discharge, Lien Stripping, and Cramdowns

Filing a Bankruptcy Petition

Post-Petition Filing

The 341 Meeting of Creditors

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