Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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​

Accepted Answer

A)  ​ensure that creditors will continue to lend to insolvent debtors. 
B)  ​protect creditor assets from diminution in value. 
C)  ​provide equitable treatment in the competition for debtor assets. 
D)  ​make all debtor property available for creditor claims. 
A)  ​ensure that creditors will continue to lend to insolvent debtors. 
B)  ​protect creditor assets from diminution in value. 
C)  ​provide equitable treatment in the competition for debtor assets. 
D)  ​make all debtor property available for creditor claims.

Question 3

Bankruptcy proceedings are held in state courts.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

eGear will not be able to repossess the

Question 5

Some student loans are dischargeable in aChapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 6

To adjust debt and institute a repayment plan, Don, a family fisherman in the Gulf of Mexico, may file a petition in bankruptcy for relief under the Bankruptcy Code'sChapter​

Accepted Answer

A)  ​7. 
B)  ​11. 
C)  ​12. 
D)  ​13. 
A)  ​7. 
B)  ​11. 
C)  ​12. 
D)  ​13.

Question 7

Ken files a petition for bankruptcy. Ken 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 8

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

Accepted Answer

A)  ​a liquidation. 
B)  ​a reorganization. 
C)  ​a repayment plan. 
D)  ​a straight bankruptcy plan. 
A)  ​a liquidation. 
B)  ​a reorganization. 
C)  ​a repayment plan. 
D)  ​a straight bankruptcy plan.

Question 9

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​

Accepted Answer

A)  ​under no circumstances. 
B)  ​if Go extended credit for all or part of the purchase price of the car. 
C)  ​if any of the loan for the car remains unpaid, regardless of the creditor. 
D)  ​if her other creditors do not object. 
A)  ​under no circumstances. 
B)  ​if Go extended credit for all or part of the purchase price of the car. 
C)  ​if any of the loan for the car remains unpaid, regardless of the creditor. 
D)  ​if her other creditors do not object.

Question 10

The basic duty of a trustee is to collect the debtor's property and reduce it to money for distribution.

Accepted Answer

A) True 
 B)False

Question 11

A debtor must be insolvent to file for bankruptcy relief.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  ​a debtor files forms designated for the purpose in a bankruptcy court. 
B)  ​a debtor is unable to pay his or her debts as they come due. 
C)  ​a debtor's creditors force the debtor into bankruptcy proceedings. 
D)  ​a debtor's debts exceed the fair market value of his or her assets. 
A)  ​a debtor files forms designated for the purpose in a bankruptcy court. 
B)  ​a debtor is unable to pay his or her debts as they come due. 
C)  ​a debtor's creditors force the debtor into bankruptcy proceedings. 
D)  ​a debtor's debts exceed the fair market value of his or her assets.

Question 13

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain​

Accepted Answer

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

Question 14

A farmer cannot be forced into involuntary bankruptcy.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

All debts are dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  ​encourage the continued use of credit to borrow funds. 
B)  ​ensure that third parties will continue to guarantee loans. 
C)  ​provide a fresh start, free from creditors' claims. 
D)  ​shield assets from creditors' claims. 
A)  ​encourage the continued use of credit to borrow funds. 
B)  ​ensure that third parties will continue to guarantee loans. 
C)  ​provide a fresh start, free from creditors' claims. 
D)  ​shield assets from creditors' claims.

Question 18

Cassie files a voluntary petition in bankruptcy for relief through a liquidation proceeding. Among her debts that will not be discharged are claims​

Accepted Answer

A)  ​by creditors who were not notified of the bankruptcy. 
B)  ​for money to be paid for goods not delivered. 
C)  ​for contributions to employee benefit plans. 
D)  ​for long overdue credit-card debt. 
A)  ​by creditors who were not notified of the bankruptcy. 
B)  ​for money to be paid for goods not delivered. 
C)  ​for contributions to employee benefit plans. 
D)  ​for long overdue credit-card debt.

Question 19

Lynn, the owner of Market Sales Company, sells the firm to Nell for a note payable to Lynn for $100,000. Nell does not pay the note and files for bankruptcy underChapter 7. The debt represented by the note is​

Accepted Answer

A)  ​dischargeable if $100,000 was a high price for the firm. 
B)  ​dischargeable under any circumstances. 
C)  not dischargeable if Nell concealed assets to defraud Lynn. 
D)  ​not dischargeable under any circumstances. 
A)  ​dischargeable if $100,000 was a high price for the firm. 
B)  ​dischargeable under any circumstances. 
C)  not dischargeable if Nell concealed assets to defraud Lynn. 
D)  ​not dischargeable under any circumstances.

Question 20

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for​

Accepted Answer

A)  ​all debts provided for by the plan. 
B)  ​money owed for services rendered. 
C)  ​allowed claims not provided for by the plan. 
D)  ​credit-card debt. 
A)  ​all debts provided for by the plan. 
B)  ​money owed for services rendered. 
C)  ​allowed claims not provided for by the plan. 
D)  ​credit-card debt.

Exam 21: Bankruptcy Law

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

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​

Bankruptcy proceedings are held in state courts.

Some student loans are dischargeable in aChapter 7 bankruptcy.

To adjust debt and institute a repayment plan, Don, a family fisherman in the Gulf of Mexico, may file a petition in bankruptcy for relief under the Bankruptcy Code'sChapter​

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

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

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​

The basic duty of a trustee is to collect the debtor's property and reduce it to money for distribution.

A debtor must be insolvent to file for bankruptcy relief.

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

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain​

A farmer cannot be forced into involuntary bankruptcy.

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

All debts are dischargeable in bankruptcy.

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

Cassie files a voluntary petition in bankruptcy for relief through a liquidation proceeding. Among her debts that will not be discharged are claims​

Lynn, the owner of Market Sales Company, sells the firm to Nell for a note payable to Lynn for $100,000. Nell does not pay the note and files for bankruptcy underChapter 7. The debt represented by the note is​

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for​

Business Ethics

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Securities Law and Corporate Governance

Tort Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Professional Liability and Accountability

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Intellectual Property

Insurance

Wills and Trusts

Digital Update:should Employees Have a Right of Disconnecting

Digital Update: Revenge Porn and Invasion of Privacy

Digital Update: Taxing Web Purchases

Ethics Today:what Are an Attorneys Responsibilities for Protecting Data Stored in a Cloud

Digital Update:the Exploding World of Digital Property

Filters

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

To adjust debt and institute a repayment plan, Don, a family fisherman in the Gulf of Mexico, may file a petition in bankruptcy for relief under the Bankruptcy Code'sChapter

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

To adjust debt and institute a repayment plan, Diana-who is not a corporation, a partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief through

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

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

Spicy Pizza, Inc., files for bankruptcy underChapter 11. Spicy's reorganization plan must contain

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

Cassie files a voluntary petition in bankruptcy for relief through a liquidation proceeding. Among her debts that will not be discharged are claims

Lynn, the owner of Market Sales Company, sells the firm to Nell for a note payable to Lynn for $100,000. Nell does not pay the note and files for bankruptcy underChapter 7. The debt represented by the note is

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for