Exam 35: Bankruptcy

A discharge releases the debtor from the unpaid balance of most debts including taxes and tax penalties.

Creditors who hold security for payment,such as a lien or a mortgage on the debtor's property,are less affected by the debtor's bankruptcy.

Individuals and corporations,but not partnerships,may be reorganized under the Bankruptcy Code.

A payment by a debtor in the ordinary course of business,such as the payment of a utility bill,will not be set aside by the bankruptcy trustee.

The filing of a voluntary,but not an involuntary,petition operates as an automatic stay.

Where the debtor has fewer than twelve (12)creditors,how many must sign an involuntary petition?

An extended time payment plan:

All debts are discharged in bankruptcy,whether disclosed by the debtor or not.

If an involuntary bankruptcy petition is dismissed other than by consent of all petitioning creditors and the debtor,the court may award which of the following to the debtor?

The trustee may void any fraudulent transfer made by the debtor within two (2)years of bankruptcy when the debtor's actual intent was to hinder,delay,or defraud creditors by engaging in the transfer.

Bankruptcy law does not regulate the manner in which the assets of the debtor are distributed;instead,distribution of the debtor's assets is solely within the discretion of the trustee.

The debtor will be denied a discharge if:

A transfer of property by the debtor to a creditor may be set aside as a __________ transfer and the property recovered by the debtor's trustee in bankruptcy if (1)the transfer was made to pay a debt incurred at some earlier time;(2)the transfer was made when the debtor was insolvent and within ninety (90)days before the filing of the bankruptcy ;and (3)the transfer resulted in the creditor receiving more than the creditor would have received in a liquidation of the debtor's estate.