Question 1

A creditor must only file a proof of claim if the bankruptcy trustee does not know of the existence of the claim.

Accepted Answer

A) True 
 B)False  False

Question 2

If there are twelve (12)or more creditors,at least __________ of those creditors whose unsecured and undisputed claims total __________ or more must sign the involuntary petition.

Accepted Answer

A)  one (1);$14,425 
B)  three (3);$14,425 
C)  one (1);$15,575 
D)  three (3);$15,575 
A)  one (1);$14,425 
B)  three (3);$14,425 
C)  one (1);$15,575 
D)  three (3);$15,575 B

Question 3

In order to be eligible for Chapter 13 bankruptcy an individual must have less than $1,081,400 in unsecured debt.

Accepted Answer

A) True 
 B)False  False

Question 4

The holder of a claim that is the subject of a bona fide dispute may be counted as a petitioning creditor.

Accepted Answer

A) True 
 B)False

Question 5

Chapter 7 is:

Accepted Answer

A)  a liquidation proceeding. 
B)  a reorganization proceeding. 
C)  an extended time payment plan. 
D)  always an involuntary proceeding. 
A)  a liquidation proceeding. 
B)  a reorganization proceeding. 
C)  an extended time payment plan. 
D)  always an involuntary proceeding.

Question 6

To be set aside as a preference,a transfer must be fraudulent.

Accepted Answer

A) True 
 B)False

Question 7

If a trustee is not elected by creditors,an interim trustee will be appointed by the court.

Accepted Answer

A) True 
 B)False

Question 8

Nonprofit corporations are exempt from involuntary bankruptcy proceedings.

Accepted Answer

A) True 
 B)False

Question 9

Stockbrokers are eligible to file Chapter 11 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

Costs and expenses of administration of the bankruptcy case,including trustee fees are paid before any money is disbursed to secured or unsecured creditors.

Accepted Answer

A) True 
 B)False

Question 11

An involuntary bankruptcy case is commenced by creditors filing a petition with a bankruptcy court.

Accepted Answer

A) True 
 B)False

Question 12

A discharge does not release a person from a consumer debt to a single creditor totaling more than $5,775 for luxury goods or services if the debt was incurred within how many days of the order for relief?

Accepted Answer

A)  90 
B)  120 
C)  180 
D)  365 
A)  90 
B)  120 
C)  180 
D)  365

Question 13

With regard to priority of claims in the payment of unsecured debts,which of the following has priority over alimony and child support obligations?

Accepted Answer

A)  costs and expenses of the administration of the bankruptcy case. 
B)  claims arising in the ordinary course of the debtor's business after commencement of the case 
C)  claims for wages,salaries or commissions earned within 180 days before the filing of the petition 
D)  none of the above 
A)  costs and expenses of the administration of the bankruptcy case. 
B)  claims arising in the ordinary course of the debtor's business after commencement of the case 
C)  claims for wages,salaries or commissions earned within 180 days before the filing of the petition 
D)  none of the above

Question 14

The filing of an involuntary bankruptcy case petition results in an order of relief.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following debts is not dischargeable in bankruptcy?

Accepted Answer

A)  judgments based on negligence 
B)  judgments based on breach of contract 
C)  judgments for willful and malicious injuries 
D)  judgments in which the creditors would receive no distribution 
A)  judgments based on negligence 
B)  judgments based on breach of contract 
C)  judgments for willful and malicious injuries 
D)  judgments in which the creditors would receive no distribution

Question 16

An automatic stay:

Accepted Answer

A)  arises only upon the filing of a voluntary petition. 
B)  prevents any further interest from accruing on a debtor's outstanding debts. 
C)  prevents creditors from taking action outside of the bankruptcy proceeding against a debtor. 
D)  ends if a debtor attempts to incur additional debt after a petition has been filed. 
A)  arises only upon the filing of a voluntary petition. 
B)  prevents any further interest from accruing on a debtor's outstanding debts. 
C)  prevents creditors from taking action outside of the bankruptcy proceeding against a debtor. 
D)  ends if a debtor attempts to incur additional debt after a petition has been filed.

Question 17

Jurisdiction over bankruptcy proceedings is vested in the federal district courts.

Accepted Answer

A) True 
 B)False

Question 18

In a Chapter 7 bankruptcy,the debtor's nonexempt assets are liquidated to pay debts.

Accepted Answer

A) True 
 B)False

Question 19

If the debtor is generally not paying debts as they become due,the debtor may be subject to an involuntary bankruptcy petition.

Accepted Answer

A) True 
 B)False

Question 20

A debtor is presumed to be insolvent on and during what number of days immediately preceding the date of the filing of a bankruptcy petition?

Accepted Answer

A)  30 
B)  60 
C)  90 
D)  120 
A)  30 
B)  60 
C)  90 
D)  120

Exam 35: Bankruptcy

A creditor must only file a proof of claim if the bankruptcy trustee does not know of the existence of the claim.

If there are twelve (12)or more creditors,at least __________ of those creditors whose unsecured and undisputed claims total __________ or more must sign the involuntary petition.

In order to be eligible for Chapter 13 bankruptcy an individual must have less than $1,081,400 in unsecured debt.

The holder of a claim that is the subject of a bona fide dispute may be counted as a petitioning creditor.

Chapter 7 is:

To be set aside as a preference,a transfer must be fraudulent.

If a trustee is not elected by creditors,an interim trustee will be appointed by the court.

Nonprofit corporations are exempt from involuntary bankruptcy proceedings.

Stockbrokers are eligible to file Chapter 11 bankruptcy.

Costs and expenses of administration of the bankruptcy case,including trustee fees are paid before any money is disbursed to secured or unsecured creditors.

An involuntary bankruptcy case is commenced by creditors filing a petition with a bankruptcy court.

A discharge does not release a person from a consumer debt to a single creditor totaling more than $5,775 for luxury goods or services if the debt was incurred within how many days of the order for relief?

With regard to priority of claims in the payment of unsecured debts,which of the following has priority over alimony and child support obligations?

The filing of an involuntary bankruptcy case petition results in an order of relief.

Which of the following debts is not dischargeable in bankruptcy?

An automatic stay:

Jurisdiction over bankruptcy proceedings is vested in the federal district courts.

In a Chapter 7 bankruptcy,the debtor's nonexempt assets are liquidated to pay debts.

If the debtor is generally not paying debts as they become due,the debtor may be subject to an involuntary bankruptcy petition.

A debtor is presumed to be insolvent on and during what number of days immediately preceding the date of the filing of a bankruptcy petition?

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If there are twelve (12)or more creditors,at least of those creditors whose unsecured and undisputed claims total or more must sign the involuntary petition.