Question 1

Which of the following is one of the Court-Appointed or Panel Trustee's duties or characteristics?

Accepted Answer

A)  Investigate the acts, conduct, liabilities, assets, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of that business. 
B)  Approve reorganization plans 
C)  Administering bankruptcy cases and reviewing employees and fee applications. 
D)  Holds a valid claim against a debtor. 
A)  Investigate the acts, conduct, liabilities, assets, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of that business. 
B)  Approve reorganization plans 
C)  Administering bankruptcy cases and reviewing employees and fee applications. 
D)  Holds a valid claim against a debtor. A

Question 2

The Concealment of Assets, False Oaths and Claims, and Bribery section of the USC makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

Accepted Answer

A)  Receive property from the debtor after bankruptcy is filed 
B)  Conceal records or property 
C)  Transfer property to the debtor 
D)  Make a false statement 
A)  Receive property from the debtor after bankruptcy is filed 
B)  Conceal records or property 
C)  Transfer property to the debtor 
D)  Make a false statement C

Question 3

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

Accepted Answer

A)  Refusing to permit inspection of documents of the estate in the person's charge 
B)  Refusing to sell assets in the person's charge 
C)  Purchasing, indirectly, any property of the debtor's estate 
D)  Purchasing, directly, any property of the debtor's estate 
A)  Refusing to permit inspection of documents of the estate in the person's charge 
B)  Refusing to sell assets in the person's charge 
C)  Purchasing, indirectly, any property of the debtor's estate 
D)  Purchasing, directly, any property of the debtor's estate B

Question 4

Which title of the U.S. Code governs the bankruptcy process?

Accepted Answer

A)  Title 9 
B)  Title 11 
C)  Title 13 
D)  Title 7 
A)  Title 9 
B)  Title 11 
C)  Title 13 
D)  Title 7

Question 5

Entering false financial information on bankruptcy petitions and schedules occurs in an estimated __________ of bankruptcy cases.

Accepted Answer

A)  10 percent 
B)  30 percent 
C)  50 percent 
D)  70 percent 
A)  10 percent 
B)  30 percent 
C)  50 percent 
D)  70 percent

Question 6

The Office of U.S. Trustee is responsible for all but which of the following functions?

Accepted Answer

A)  Administering bankruptcy cases 
B)  Officiating in court on matters of interest to the debtor's estate and creditors 
C)  Overseeing and monitoring trustees 
D)  Reviewing employees and fee applications 
E)  The Office of U.S. Trustee is responsible for all of the above functions 
A)  Administering bankruptcy cases 
B)  Officiating in court on matters of interest to the debtor's estate and creditors 
C)  Overseeing and monitoring trustees 
D)  Reviewing employees and fee applications 
E)  The Office of U.S. Trustee is responsible for all of the above functions

Question 7

In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:

Accepted Answer

A)  Fraud has caused the bankruptcy or divorce 
B)  The bankruptcy or divorce is used to perpetrate the fraud 
C)  The bankruptcy or divorce is used to conceal the fraud 
D)  None of the above 
A)  Fraud has caused the bankruptcy or divorce 
B)  The bankruptcy or divorce is used to perpetrate the fraud 
C)  The bankruptcy or divorce is used to conceal the fraud 
D)  None of the above

Question 8

Criminal bankruptcy fraud cases are generally prosecuted by the:

Accepted Answer

A)  U.S. Attorney's office 
B)  FBI 
C)  CIA 
D)  District Attorney's office 
A)  U.S. Attorney's office 
B)  FBI 
C)  CIA 
D)  District Attorney's office

Question 9

As a participant in divorce cases, an adjustor can be best described as a person who

Accepted Answer

A)  Investigates allegations of fraud or misconduct by the debtor or its principals 
B)  Is the subject of a chapter 11 filing 
C)  Is the one who holds a valid claim against a debtor 
D)  Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales 
A)  Investigates allegations of fraud or misconduct by the debtor or its principals 
B)  Is the subject of a chapter 11 filing 
C)  Is the one who holds a valid claim against a debtor 
D)  Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales

Question 10

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

Accepted Answer

A)  The debtor knew the debts could not be repaid at maturity 
B)  The debtor becomes insolvent as a result of the transfer 
C)  The debtor misstates the value of the transfer 
D)  The debtor's capital remaining after the transfer is unreasonably small 
A)  The debtor knew the debts could not be repaid at maturity 
B)  The debtor becomes insolvent as a result of the transfer 
C)  The debtor misstates the value of the transfer 
D)  The debtor's capital remaining after the transfer is unreasonably small

Question 11

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

Accepted Answer

A)  File a bankruptcy petition 
B)  File a document in a bankruptcy proceeding 
C)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding 
D)  All of the above 
A)  File a bankruptcy petition 
B)  File a document in a bankruptcy proceeding 
C)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding 
D)  All of the above

Question 12

The best description of a fraudulent transfer in a bankruptcy setting is:

Accepted Answer

A)  A transfer of assets made with the intent of placing them outside the reach of a bankruptcy court 
B)  A transfer of cash in exchange for supplies or other business assets 
C)  A transfer of assets made to another institution before a bankruptcy is filed 
D)  A transfer to a fund or other account to hold assets for a period of time 
A)  A transfer of assets made with the intent of placing them outside the reach of a bankruptcy court 
B)  A transfer of cash in exchange for supplies or other business assets 
C)  A transfer of assets made to another institution before a bankruptcy is filed 
D)  A transfer to a fund or other account to hold assets for a period of time

Question 13

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Accepted Answer

A)  Furnish information about the estate and its administration 
B)  Ensure that the debtor files the statement of intention to retain or surrender property 
C)  After confirmation of a plan, file such reports as are necessary or as the court orders 
D)  Oppose the discharge of the debtor when appropriate 
A)  Furnish information about the estate and its administration 
B)  Ensure that the debtor files the statement of intention to retain or surrender property 
C)  After confirmation of a plan, file such reports as are necessary or as the court orders 
D)  Oppose the discharge of the debtor when appropriate

Question 14

Which of the following is not a purpose of bankruptcy?

Accepted Answer

A)  Give debtors relief from the creditors. 
B)  Protect debtors from unfair collection efforts by other creditors. 
C)  Give debtors relief from foreclosure activities. 
D)  Gives the debtor the ability to safeguard their most important assets. 
E)  All of the above are purposes of bankruptcy 
A)  Give debtors relief from the creditors. 
B)  Protect debtors from unfair collection efforts by other creditors. 
C)  Give debtors relief from foreclosure activities. 
D)  Gives the debtor the ability to safeguard their most important assets. 
E)  All of the above are purposes of bankruptcy

Question 15

"Bust-out" refers to:

Accepted Answer

A)  A planned bankruptcy 
B)  Jailbreak planned by fraud perpetrators 
C)  Skipping out on bail 
D)  Fraud prevention program for convicted fraudsters 
A)  A planned bankruptcy 
B)  Jailbreak planned by fraud perpetrators 
C)  Skipping out on bail 
D)  Fraud prevention program for convicted fraudsters

Question 16

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

Accepted Answer

A) True 
 B)False

Question 17

One type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less. This type of bankruptcy is defined in _____ of the Bankruptcy Code.

Accepted Answer

A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13 
A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13

Question 18

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

Accepted Answer

A)  Fraudsters don't have accurate records 
B)  Assets are taken away from one party and given to others 
C)  To see if private investigators can find the hidden asset 
D)  None of the above 
A)  Fraudsters don't have accurate records 
B)  Assets are taken away from one party and given to others 
C)  To see if private investigators can find the hidden asset 
D)  None of the above

Question 19

When fraud examiners investigate a bankruptcy or divorce resulting from fraud where do they focus?

Accepted Answer

A)  Activity shortly before the bankruptcy filing or divorce 
B)  Activity after the bankruptcy filing or divorce 
C)  Activity several years prior to the bankruptcy filing or divorce 
D)  Activity throughout the individual's entire life 
A)  Activity shortly before the bankruptcy filing or divorce 
B)  Activity after the bankruptcy filing or divorce 
C)  Activity several years prior to the bankruptcy filing or divorce 
D)  Activity throughout the individual's entire life

Question 20

Which of the following is the strongest indication of a bust-out?

Accepted Answer

A)  The company has one permanent address in downtown San Jose. 
B)  Management suddenly changes without public notice. 
C)  Inventory suddenly and dramatically increases. 
D)  One of the credit references is Chase Manhattan. 
A)  The company has one permanent address in downtown San Jose. 
B)  Management suddenly changes without public notice. 
C)  Inventory suddenly and dramatically increases. 
D)  One of the credit references is Chase Manhattan.

Which of the following is one of the Court-Appointed or Panel Trustee's duties or characteristics?

The Concealment of Assets, False Oaths and Claims, and Bribery section of the USC makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

Which title of the U.S. Code governs the bankruptcy process?

Entering false financial information on bankruptcy petitions and schedules occurs in an estimated __________ of bankruptcy cases.

The Office of U.S. Trustee is responsible for all but which of the following functions?

In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:

Criminal bankruptcy fraud cases are generally prosecuted by the:

As a participant in divorce cases, an adjustor can be best described as a person who

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

The best description of a fraudulent transfer in a bankruptcy setting is:

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Which of the following is not a purpose of bankruptcy?

"Bust-out" refers to:

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

One type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less. This type of bankruptcy is defined in _____ of the Bankruptcy Code.

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

When fraud examiners investigate a bankruptcy or divorce resulting from fraud where do they focus?

Which of the following is the strongest indication of a bust-out?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 16: Bankruptcy, Divorce, and Tax Fraud

Which of the following is one of the Court-Appointed or Panel Trustee's duties or characteristics?

The Concealment of Assets, False Oaths and Claims, and Bribery section of the USC makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

Which title of the U.S. Code governs the bankruptcy process?

Entering false financial information on bankruptcy petitions and schedules occurs in an estimated __________ of bankruptcy cases.

The Office of U.S. Trustee is responsible for all but which of the following functions?

In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:

Criminal bankruptcy fraud cases are generally prosecuted by the:

As a participant in divorce cases, an adjustor can be best described as a person who

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

The best description of a fraudulent transfer in a bankruptcy setting is:

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Which of the following is not a purpose of bankruptcy?

"Bust-out" refers to:

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

One type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less. This type of bankruptcy is defined in _____ of the Bankruptcy Code.

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

When fraud examiners investigate a bankruptcy or divorce resulting from fraud where do they focus?

Which of the following is the strongest indication of a bust-out?

The Nature of Fraud

Why People Commit Fraud

Fighting Fraud: An Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters