Exam 26: Bankruptcy

Current City (CC)is a retail seller of television sets. CC sells Dhani a $3,000 large-screen,high-definition,LED set on a retail installment security agreement in which he pays $100 down and agrees to pay the balance in equal installments. CC retains a security interest in the set,and perfects that interest by filing a financing statement centrally. Two months later,Dhani is in default on the payments to CC and is involun-tarily petitioned into bankruptcy by other creditors. Discuss CC's right to repossess the TV set and whether CC has priority over the trustee in bankruptcy.

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

Carlton files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to

A farmer cannot be forced into involuntary bankruptcy.

Patty files a petition in bankruptcy. At the moment of filing

Daniel is a trustee for a federal bankruptcy court. Daniel's duties include

Foreclosure is the legal process by which a lender repossesses and auctions off property that has secured a loan.

Countryside Bank provides Dhani with a standard mortgage with an unchanging rate of interest to buy a home. Payments on the loan remain the same for the duration of the mortgage. This is

A trustee has the power to avoid preferences.

Gem Jewelers files a voluntary petition for bankruptcy. In listing its as-sets,Gem in-tentionally does not include certain valuable stones. After Gem is granted a discharge,Hasty Catering,one of Gem's unsecured creditors whose claims were discharged,learns of the fraud. Hasty can

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

Before filing for bankruptcy,a consumer-debtor must receive credit counseling.