Question 1

Why is a discharge of debt granted?

Accepted Answer

A) to divide the bankruptcy estate equally among all creditors 
B) to relieve the debtor of the responsibility to pay some of or all of the debt 
C) to divide the bankruptcy estate according to the debt owed to each creditor 
D) to suspend certain legal actions by creditors against a debtor's property 
A) to divide the bankruptcy estate equally among all creditors 
B) to relieve the debtor of the responsibility to pay some of or all of the debt 
C) to divide the bankruptcy estate according to the debt owed to each creditor 
D) to suspend certain legal actions by creditors against a debtor's property

Question 2

The fees of any attorney or filing service used for filing bankruptcy must be paid by the debtor.

Accepted Answer

A) True 
 B)False

Question 3

Bankruptcy law is exclusively federal law; there are no state bankruptcy laws.

Accepted Answer

A) True 
 B)False

Question 4

The Helping Families Save Their Home Act of 2009 provides ways for some home owners to qualify to have their loans modified so that they could more easily retain their homes and prevent foreclosure.

Accepted Answer

A) True 
 B)False

Question 5

Unscheduled claims are not dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 6

If the value of the secured interest is less than the value of the collateral securing a loan,the secured creditor is a(n)________.

Accepted Answer

A) undersecured 
B) oversecured 
C) in default 
D) exempt from Chapter 7 bankruptcy 
A) undersecured 
B) oversecured 
C) in default 
D) exempt from Chapter 7 bankruptcy

Question 7

A secured creditor whose claim exceeds the value of the collateral may submit a proof of claim and become an unsecured claimant as to the difference.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of the bankruptcy procedure?

Accepted Answer

A) A driven petition is a petition filed by a debtor that states that he or she has debts. 
B) A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding. 
A) A driven petition is a petition filed by a debtor that states that he or she has debts. 
B) A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C) A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D) A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding.

Question 9

All creditors must file a proof of interest before a bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 10

A(n)________ is an agreement entered into by the creditor and the debtor whereby the debtor agrees to pay the creditor for a debt that is dischargeable in bankruptcy.

Accepted Answer

A) reaffirmation agreement 
B) order for relief 
C) discharge agreement 
D) acceptance agreement 
A) reaffirmation agreement 
B) order for relief 
C) discharge agreement 
D) acceptance agreement

Question 11

What is an executory contract?

Accepted Answer

A) a contract that cannot be discharged under Chapter 13 
B) a contract that the debtor is obliged to perform despite filing for bankruptcy 
C) an agreement between several creditors and a single debtor, dividing the debtor's property 
D) a contract that has not been fully performed 
A) a contract that cannot be discharged under Chapter 13 
B) a contract that the debtor is obliged to perform despite filing for bankruptcy 
C) an agreement between several creditors and a single debtor, dividing the debtor's property 
D) a contract that has not been fully performed

Question 12

Which of the following is true of Chapter 7 liquidation?

Accepted Answer

A) The debtor is not permitted to keep any of his or her assets. 
B) The 2005 bankruptcy act has eased the process of applying for a Chapter 7 bankruptcy. 
C) The debtor's future income cannot be reached to pay the discharged debt. 
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter. 
A) The debtor is not permitted to keep any of his or her assets. 
B) The 2005 bankruptcy act has eased the process of applying for a Chapter 7 bankruptcy. 
C) The debtor's future income cannot be reached to pay the discharged debt. 
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter.

Question 13

The suspension of certain legal actions by creditors against a debtor or the debtor's property is known as a(n)________.

Accepted Answer

A) discharge of debt 
B) composition 
C) automatic stay 
D) order for relief 
A) discharge of debt 
B) composition 
C) automatic stay 
D) order for relief

Question 14

Which of the following is true of a Chapter 13 petition?

Accepted Answer

A) It can be filed by all individual debtors, irrespective of their income. 
B) The petitioner need not demand an extension or composition. 
C) To qualify for Chapter 13, the debts must primarily be consumer debt. 
D) Creditors can file a Chapter 13 petition claiming payment from a debtor. 
A) It can be filed by all individual debtors, irrespective of their income. 
B) The petitioner need not demand an extension or composition. 
C) To qualify for Chapter 13, the debts must primarily be consumer debt. 
D) Creditors can file a Chapter 13 petition claiming payment from a debtor.

Question 15

Paulo Dessario is the owner of Paulo's Pizzeria,which has not been doing well in the last year.He files for bankruptcy under Chapter 13.Which of the following is true of Chapter 13?

Accepted Answer

A) Paulo must terminate all his business operations in the United States. 
B) If the pizzeria is not exempt from the Chapter 13 estate, Paulo must close it. 
C) Paulo is allowed to continue operating the pizzeria, whether or not it is exempt. 
D) Paulo can only operate the pizzeria but cannot remain in possession of it. 
A) Paulo must terminate all his business operations in the United States. 
B) If the pizzeria is not exempt from the Chapter 13 estate, Paulo must close it. 
C) Paulo is allowed to continue operating the pizzeria, whether or not it is exempt. 
D) Paulo can only operate the pizzeria but cannot remain in possession of it.

Question 16

Which of the following constitutes the property of a Chapter 13 estate?

Accepted Answer

A) nonexempt property of the debtor before the case is closed 
B) exempt property of the debtor before the case is closed 
C) debtor's income before and after the case is closed 
D) property that is exempt from Chapter 7 estate 
A) nonexempt property of the debtor before the case is closed 
B) exempt property of the debtor before the case is closed 
C) debtor's income before and after the case is closed 
D) property that is exempt from Chapter 7 estate

Question 17

A U.S.Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

Accepted Answer

A) True 
 B)False

Question 18

The acceptance method is a method whereby a bankruptcy court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

Accepted Answer

A) True 
 B)False

Question 19

What is a Chapter 7 discharge?

Accepted Answer

A) The termination of the legal duty of an individual debtor to pay both secured and unsecured debts before he or she is granted a court trial. 
B) The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments. 
A) The termination of the legal duty of an individual debtor to pay both secured and unsecured debts before he or she is granted a court trial. 
B) The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments.

Question 20

The property of a Chapter 13 estate consists of nonexempt property acquired after a case is closed.

Accepted Answer

A) True 
 B)False

Exam 28: Bankruptcy and Reorganization

Why is a discharge of debt granted?

The fees of any attorney or filing service used for filing bankruptcy must be paid by the debtor.

Bankruptcy law is exclusively federal law; there are no state bankruptcy laws.

The Helping Families Save Their Home Act of 2009 provides ways for some home owners to qualify to have their loans modified so that they could more easily retain their homes and prevent foreclosure.

Unscheduled claims are not dischargeable in bankruptcy.

If the value of the secured interest is less than the value of the collateral securing a loan,the secured creditor is a(n)________.

A secured creditor whose claim exceeds the value of the collateral may submit a proof of claim and become an unsecured claimant as to the difference.

Which of the following is true of the bankruptcy procedure?

All creditors must file a proof of interest before a bankruptcy proceeding.

A(n)________ is an agreement entered into by the creditor and the debtor whereby the debtor agrees to pay the creditor for a debt that is dischargeable in bankruptcy.

What is an executory contract?

Which of the following is true of Chapter 7 liquidation?

The suspension of certain legal actions by creditors against a debtor or the debtor's property is known as a(n)________.

Which of the following is true of a Chapter 13 petition?

Paulo Dessario is the owner of Paulo's Pizzeria,which has not been doing well in the last year.He files for bankruptcy under Chapter 13.Which of the following is true of Chapter 13?

Which of the following constitutes the property of a Chapter 13 estate?

A U.S.Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

The acceptance method is a method whereby a bankruptcy court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

What is a Chapter 7 discharge?

The property of a Chapter 13 estate consists of nonexempt property acquired after a case is closed.

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Intentional Torts and Negligence

Product and Strict Liability

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Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

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Liability of Principals, agents, and Independent Contractors

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Ethics and Social Responsibility of Business

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