Exam 30: Bankruptcy

Under Chapter 13 of the Bankruptcy Code:

A voluntary petition under Chapter 7:

As demonstrated in the case in the text,In re Bernard Madoff Investment Securities,a trustee:

Unsecured creditors,to the extent that the bankruptcy estate is solvent,share in proportion to what?

A bankrupt person who conceals property in order to hinder,delay,or defraud creditors loses any discharge that he may have had regarding that property,but his other debts still are dischargeable.

Abe and Hanna are husband and wife.They have filed for Chapter 7 bankruptcy.However,they cannot agree on which set of property exemptions they want to use.Abe wants to use the federal set of exemptions,but Hanna wants to use the set of exemptions from Michigan,where they have lived for 10 years.Under these circumstances:

The filing of a bankruptcy petition operates as a(n):

Dave owes $100,000 to Cindy and $100,000 to Connie.Both before and after Dave went into bankruptcy under Chapter 7,he engaged in faking records,withholding information,and concealing assets in order to avoid Cindy's debt.However,Dave did not behave this way in regard to Connie's debt.Because Dave had few assets and Connie's debt was unsecured,she got virtually nothing out of Dave's bankruptcy.The same is true regarding Cindy.Sometime later,therefore,Cindy and Connie sued Dave on the debt,once Dave becomes rich.Dave defends by saying that both debts are discharged.Is Dave right? Assume that each debt is a normal contract obligation.

The Ace Corporation is involuntarily petitioned into a Chapter 7 bankruptcy on March 1,1994.On January 10,1994,Ace paid the Highstate Gas Company for its $1,700 utility bill for natural gas supplied during December of 1993.Is this payment preferential? Why or why not?

The Bankruptcy Act of 2005 increases the responsibility of a debtor's attorneys thereby raising concerns that bankruptcy practice may become less attractive because:

One of the kinds of property that is exempt from bankruptcy under Chapter 7's federal exemptions is the debtor's interest (not to exceed $3,775 in value)in one motor vehicle.

The priority claims to a bankruptcy estate are paid after the secured claims but before the unsecured claims.

An involuntary bankruptcy petition can be filed against:

In determining the debtor's interest in property:

________ refers to the agreement between the debtors and the creditors wherein creditors put pressure on debtors to pay debts that have been discharged in bankruptcy.

Chapter 14 of the Bankruptcy Code allows for special protections for family farmers.

Which of the following can only be initiated by a voluntary bankruptcy petition?

The 2005 revisions of the Bankruptcy Code makes it the responsibility of the ________ to determine that a pleading of insolvency is well grounded in fact and is either warranted by existing law or is based on a good faith argument for extending existing law.

Under the Bankruptcy Act's exemption provisions:

Chapter 12 is available only for family farmers and fishermen with regular income.