Question 1

Under Chapter ___________, the bankruptcy estate does not include wages earned after commencement of the case.

Accepted Answer

A) 7 
B) 11 
C) 13 
D) All of the above 
A) 7 
B) 11 
C) 13 
D) All of the above

Question 2

A Chapter 13 plan of reorganization may include all but which one of the following?

Accepted Answer

A) Priority debts must be paid in full unless the debtor waives that right. 
B) Future wages necessary to execute the plan must be controlled by the trustee. 
C) Assets must be liquidated. 
D) The rights of unsecured creditors may be modified. 
A) Priority debts must be paid in full unless the debtor waives that right. 
B) Future wages necessary to execute the plan must be controlled by the trustee. 
C) Assets must be liquidated. 
D) The rights of unsecured creditors may be modified.

Question 3

The court must confirm a plan of reorganization before it is binding on the parties.

Accepted Answer

A) True 
 B)False

Question 4

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition and must be insolvent to do so.

Accepted Answer

A) True 
 B)False

Question 5

MATCHING
Part VIII Matching
Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.
-absolute surety

Accepted Answer

The answer of MATCHING
Part VIII Matching
Match each statement with the...

Question 6

Within 30 days after relief is ordered, a meeting of creditors must be held, at which the debtor must submit to examination by creditors and the court.

Accepted Answer

A) True 
 B)False

Question 7

A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee.

Accepted Answer

A) True 
 B)False

Question 8

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Accepted Answer

A) Good faith. 
B) Feasibility. 
C) Be accepted by all creditors. 
D) Cash payments for certain classes of creditors. 
A) Good faith. 
B) Feasibility. 
C) Be accepted by all creditors. 
D) Cash payments for certain classes of creditors.

Question 9

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

Accepted Answer

A) unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B) unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C) in all events. 
D) Both (a) and (b) are alternative exceptions to the six-year rule. 
A) unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B) unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C) in all events. 
D) Both (a) and (b) are alternative exceptions to the six-year rule.

Question 10

What are the duties of a trustee under Chapter 7?

Accepted Answer

A) To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B) To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C) To rehabilitate the accounts of the debtor. 
D) (a) and (c), but not (b). 
E) (a) and (b), but not (c). 
A) To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B) To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C) To rehabilitate the accounts of the debtor. 
D) (a) and (c), but not (b). 
E) (a) and (b), but not (c).

Question 11

MATCHING
Part VIII Matching
Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.
-conditional guarantor of collection

Accepted Answer

The answer of MATCHING
Part VIII Matching
Match each statement with the...

Question 12

Under the exemptions found in the federal Bankruptcy Act, which of the following items may the debtor keep?

Accepted Answer

A) A homestead of any value. 
B) Social Security benefits of $1,350 per month. 
C) $5,000 per month in payments from a pension plan. 
D) All of the above are exempt under the federal exemptions. 
E) Two of the above, (b) and (c). 
A) A homestead of any value. 
B) Social Security benefits of $1,350 per month. 
C) $5,000 per month in payments from a pension plan. 
D) All of the above are exempt under the federal exemptions. 
E) Two of the above, (b) and (c).

Question 13

A statutory lien arises solely by force of statute and includes a security interest and a judicial lien.

Accepted Answer

A) True 
 B)False

Question 14

Creditors entitled to priority are paid before:

Accepted Answer

A) the debtor's attorney. 
B) secured creditors. 
C) unsecured creditors who file their claims on time. 
D) All of the above. 
A) the debtor's attorney. 
B) secured creditors. 
C) unsecured creditors who file their claims on time. 
D) All of the above.

Question 15

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 16

Which chapter of the Bankruptcy Act allows for the adjustment of debts of an individual with regular income?

Accepted Answer

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

Question 17

Under the UCC and the Bankruptcy Code, the bankruptcy trustee has priority over a creditor with a security interest that was not perfected at the time the bankruptcy petition was filed.

Accepted Answer

A) True 
 B)False

Question 18

MATCHING
Part VIII Matching
Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.
-pledge

Accepted Answer

The answer of MATCHING
Part VIII Matching
Match each statement with the...

Question 19

MATCHING
Part VIII Matching
Match each statement with the correct term below.a.The right in personal property that secures payment or performance of an obligation.b.Relief from liability for all debts except those specified in the Bankruptcy Code.c.A document filed to provide notice of a security interest.d.Property subject to a security interest.e.Tangible or electronic record that evidences both a debt and a security interest in specific goods.f.Creation of a security interest that is enforceable against a debtor.g.Delivery of personal property to a creditor as security for payment of a debt.h.An agreement between the debtor and creditor creating a right in personal property that secures payment or performance.i.Movable things bought or used primarily for personal, family, or household purposes.j.Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.k.A surety liable to a creditor immediately upon the default of a principal debtor.l.Creation of a security interest enforceable against most third parties.m.The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.n.A surety's right to assume the creditor's rights.o.A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.p.A way to begin a bankruptcy case that is available to any debtor even if solvent.q.May be filed by creditors only under Chapter 7 or 11.r.The person responsible for collecting, liquidating, and distributing the debtor's estate.s.Surety liable to a creditor only after creditor has exhausted legal remedies against the principal debtor.t.Any entity that has a claim against the debtor.u.A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.v.Certain preferential transfers made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.w.An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.x.Prevents attempts by creditors to recover claims against the debtor.y.A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.
-automatic stay

Accepted Answer

The answer of MATCHING
Part VIII Matching
Match each statement with the...

Question 20

The 2005 Act added a requirement for individual debtors to receive credit counseling within 180 days before filing a bankruptcy petition.

Accepted Answer

A) True 
 B)False

Exam 39: Bankruptcy

Under Chapter ___________, the bankruptcy estate does not include wages earned after commencement of the case.

A Chapter 13 plan of reorganization may include all but which one of the following?

The court must confirm a plan of reorganization before it is binding on the parties.

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition and must be insolvent to do so.

Within 30 days after relief is ordered, a meeting of creditors must be held, at which the debtor must submit to examination by creditors and the court.

A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee.

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

What are the duties of a trustee under Chapter 7?

Under the exemptions found in the federal Bankruptcy Act, which of the following items may the debtor keep?

A statutory lien arises solely by force of statute and includes a security interest and a judicial lien.

Creditors entitled to priority are paid before:

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Which chapter of the Bankruptcy Act allows for the adjustment of debts of an individual with regular income?

Under the UCC and the Bankruptcy Code, the bankruptcy trustee has priority over a creditor with a security interest that was not perfected at the time the bankruptcy petition was filed.

The 2005 Act added a requirement for individual debtors to receive credit counseling within 180 days before filing a bankruptcy petition.

Introduction to Law

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Constitutional Law

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Introduction to Contracts

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Relationship of Principal and Agent

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Formation and Internal Relations of General Partnerships

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Nature and Formation of Corporations

Financial Structure of Corporations

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Secured Transactions and Suretyship

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