Question 1

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

Accepted Answer

A)  ​an automatic stay goes into effect. 
B)  ​Patsy's debts are discharged. 
C)  ​Patsy's petition is dismissed. 
D)  ​Patsy's property is distributed to her creditors. 
A)  ​an automatic stay goes into effect. 
B)  ​Patsy's debts are discharged. 
C)  ​Patsy's petition is dismissed. 
D)  ​Patsy's property is distributed to her creditors.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  ​a plan to turn over his future income to the trustee. 
B)  ​a certificate proving attendance at a credit-counseling briefing. 
C)  ​a provision of adequate means for the petition's execution. 
D)  ​a statement of preference for one creditor over another. 
A)  ​a plan to turn over his future income to the trustee. 
B)  ​a certificate proving attendance at a credit-counseling briefing. 
C)  ​a provision of adequate means for the petition's execution. 
D)  ​a statement of preference for one creditor over another.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) a fixed-rate mortgage. 
B) an adjustable-rate mortgage. 
C) a workout agreement. 
D) a violation of the law. 
A) a fixed-rate mortgage. 
B) an adjustable-rate mortgage. 
C) a workout agreement. 
D) a violation of the law.

Question 6

A homestead exemption allows a debtor to subtract the value of the family home from the amount of a debt.

Accepted Answer

A) True 
 B)False

Question 7

Umiko files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within

Accepted Answer

A)  ​fifteen days of the order for relief. 
B)  ​thirty days of the filing of the petition. 
C)  ​sixty days of the automatic stay. 
D)  ​ninety days of the creditors' meeting. 
A)  ​fifteen days of the order for relief. 
B)  ​thirty days of the filing of the petition. 
C)  ​sixty days of the automatic stay. 
D)  ​ninety days of the creditors' meeting.

Question 8

On the entry of an order for relief in a reorganization case, the creditors generally take over the operation of the debtor's business.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A court can dismiss a debtor's petition for aChapter 13 adjustment if the circumstances indicate bad faith.

Accepted Answer

A) True 
 B)False

Question 11

A trustee has the power to avoid preferences.

Accepted Answer

A) True 
 B)False

Question 12

Norma files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Norma's creditors. O'Brien is​

Accepted Answer

A)  ​a preferred creditor. 
B)  ​a bankruptcy court judge. 
C)  ​a bankruptcy trustee. 
D)  ​a debtor. 
A)  ​a preferred creditor. 
B)  ​a bankruptcy court judge. 
C)  ​a bankruptcy trustee. 
D)  ​a debtor.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Milos files a petition in bankruptcy. His dischargeable debts include​

Accepted Answer

A)  ​domestic-support obligations. 
B)  ​student loans unless the lender would suffer undue hardship. 
C)  ​court costs, trustee fees, and attorney's fees associated with the bankruptcy. 
D)  ​unsecured credit-card debt. 
A)  ​domestic-support obligations. 
B)  ​student loans unless the lender would suffer undue hardship. 
C)  ​court costs, trustee fees, and attorney's fees associated with the bankruptcy. 
D)  ​unsecured credit-card debt.

Question 15

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​

Accepted Answer

A)  ​the completion of all payments to all creditors within six years. 
B)  ​the payment of 100 percent of all obligations in full. 
C)  ​the surrender of all collateral to the creditors. 
D)  ​the turnover of the debtor's future income to the trustee. 
A)  ​the completion of all payments to all creditors within six years. 
B)  ​the payment of 100 percent of all obligations in full. 
C)  ​the surrender of all collateral to the creditors. 
D)  ​the turnover of the debtor's future income to the trustee.

Question 16

Recording a mortgage ensures that a creditor is officially on record as holding an interest in mortgaged property.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

If a debtor's income is below the median income, there is no presumption of bankruptcy abuse.

Accepted Answer

A) True 
 B)False

Question 19

A petition for a discharge in bankruptcy underChapter 13 may be filed by​

Accepted Answer

A)  ​Gracie, the sole proprietor of Home Net Services. 
B)  ​Internet Portals & Pages, a partnership. 
C)  ​World Web Services, Inc., a corporation. 
D)  ​all of the choices. 
A)  ​Gracie, the sole proprietor of Home Net Services. 
B)  ​Internet Portals & Pages, a partnership. 
C)  ​World Web Services, Inc., a corporation. 
D)  ​all of the choices.

Question 20

All debts are dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Exam 22: Bankruptcy

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

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

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

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

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 homestead exemption allows a debtor to subtract the value of the family home from the amount of a debt.

Umiko files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within

On the entry of an order for relief in a reorganization case, the creditors generally take over the operation of the debtor's business.

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

A court can dismiss a debtor's petition for aChapter 13 adjustment if the circumstances indicate bad faith.

A trustee has the power to avoid preferences.

Norma files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Norma's creditors. O'Brien is​

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

Milos files a petition in bankruptcy. His dischargeable debts include​

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​

Recording a mortgage ensures that a creditor is officially on record as holding an interest in mortgaged property.

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

If a debtor's income is below the median income, there is no presumption of bankruptcy abuse.

A petition for a discharge in bankruptcy underChapter 13 may be filed by​

All debts are dischargeable in bankruptcy.

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Nature and Classification

Agreement

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Private Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

Filters

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

Kofi files a petition for bankruptcy. Kofi must include with the petition

Norma files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Norma's creditors. O'Brien is

Milos files a petition in bankruptcy. His dischargeable debts include

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 petition for a discharge in bankruptcy underChapter 13 may be filed by