Question 1

Unless state law provides otherwise,a bankrupt party may choose either the state's exemptions or the federal exemptions when deciding which property to exempt from bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

In order to safeguard the debtor from reaffirmation agreements the court:

Accepted Answer

A) allows the debtor to rescind the reaffirmation agreement within a period of 60 days. 
B) is empowered to declare all reaffirmation agreements as void. 
C) may order the creditor to demand only 50 percent of the original debt amount. 
D) may allow a reaffirmation agreement only if the debtor is represented by an attorney. 
A) allows the debtor to rescind the reaffirmation agreement within a period of 60 days. 
B) is empowered to declare all reaffirmation agreements as void. 
C) may order the creditor to demand only 50 percent of the original debt amount. 
D) may allow a reaffirmation agreement only if the debtor is represented by an attorney.

Question 3

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

Accepted Answer

A) Transfers that are intended by the debtor and creditor to be a contemporaneous exchange for new value. 
B) Transfers that led to the creation of a security interest in new property where new value was given by the secured party to enable the debtor to obtain the property. 
C) Transfers made in payment of a debt incurred in the ordinary course of the business of the debtor and the transferee. 
D) Transfers to or for the benefit of an insider under an employment contract and not in the ordinary course of business. 
A) Transfers that are intended by the debtor and creditor to be a contemporaneous exchange for new value. 
B) Transfers that led to the creation of a security interest in new property where new value was given by the secured party to enable the debtor to obtain the property. 
C) Transfers made in payment of a debt incurred in the ordinary course of the business of the debtor and the transferee. 
D) Transfers to or for the benefit of an insider under an employment contract and not in the ordinary course of business.

Question 4

To which of the following is Chapter 11 not available?

Accepted Answer

A) Manufacturing corporations 
B) A sole proprietorship that sells used cars 
C) A bank 
D) A person in his or her individual capacity 
A) Manufacturing corporations 
B) A sole proprietorship that sells used cars 
C) A bank 
D) A person in his or her individual capacity

Question 5

The means test is designed to determine the:

Accepted Answer

A) debtor's ability to repay general unsecured claims. 
B) creditor's ability to recover unpaid claims from the debtor. 
C) court's ability to guarantee exemptions for the debtor. 
D) government's ability to bar corporations from availing the provision of discharge of debts. 
A) debtor's ability to repay general unsecured claims. 
B) creditor's ability to recover unpaid claims from the debtor. 
C) court's ability to guarantee exemptions for the debtor. 
D) government's ability to bar corporations from availing the provision of discharge of debts.

Question 6

Debtors have to file a statement of their calculations under the ________ as part of their schedule of current income and expenditures.

Accepted Answer

A) limiting test 
B) ends test 
C) means test 
D) asset test 
A) limiting test 
B) ends test 
C) means test 
D) asset test

Question 7

In a Chapter 7 liquidation proceeding,the claims of creditors are paid in which of the following order?

Accepted Answer

A) Priority claims take precedence over claims made by secured and unsecured creditors. 
B) The claims of secured creditors are satisfied first,followed by priority claims,and lastly claims made by unsecured creditors. 
C) Older claims are given priority over more recent claims. 
D) Claims of secured creditors are satisfied first,followed by unsecured creditors,and lastly priority claims. 
A) Priority claims take precedence over claims made by secured and unsecured creditors. 
B) The claims of secured creditors are satisfied first,followed by priority claims,and lastly claims made by unsecured creditors. 
C) Older claims are given priority over more recent claims. 
D) Claims of secured creditors are satisfied first,followed by unsecured creditors,and lastly priority claims.

Question 8

The Bankruptcy Code is a part of state law.

Accepted Answer

A) True 
 B)False

Question 9

Bob has not paid his ex-wife alimony as required under court order.His ex-wife is trying to collect the alimony Bob owes her.Bob files a bankruptcy petition.This automatically stays his ex-wife's collection efforts.

Accepted Answer

A) True 
 B)False

Question 10

________ refers to securing exempt personal property from secured creditors by paying them the full value of the collateral at the time the property is redeemed.

Accepted Answer

A) Automatic stay 
B) Discharge 
C) Exemption 
D) Redemption 
A) Automatic stay 
B) Discharge 
C) Exemption 
D) Redemption

Question 11

Creditors wishing to obtain funds from a bankrupt estate must typically file proof of a claim with the estate within a certain time.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding reorganizations under Chapter 11?

Accepted Answer

A) Only corporations are eligible for Chapter 11. 
B) Chapter 11 proceedings are voluntary only. 
C) No trustee can be appointed. 
D) The court must confirm any reorganization plan approved by the creditors. 
A) Only corporations are eligible for Chapter 11. 
B) Chapter 11 proceedings are voluntary only. 
C) No trustee can be appointed. 
D) The court must confirm any reorganization plan approved by the creditors.

Question 13

Under the Bankruptcy Code the debtor:

Accepted Answer

A) must elect to use either the set of exemptions provided by the state or the set provided by the federal bankruptcy law. 
B) must honor the instructions of the adjudicating court with regard to the set of exemptions that he should take. 
C) must accept the decision of the creditors with regard to the exemptions to be taken so as to not jeopardize his chance of recovery. 
D) may pick and choose between the set of exemptions provided by the state or the set provided by the federal bankruptcy law. 
A) must elect to use either the set of exemptions provided by the state or the set provided by the federal bankruptcy law. 
B) must honor the instructions of the adjudicating court with regard to the set of exemptions that he should take. 
C) must accept the decision of the creditors with regard to the exemptions to be taken so as to not jeopardize his chance of recovery. 
D) may pick and choose between the set of exemptions provided by the state or the set provided by the federal bankruptcy law.

Question 14

A court cannot grant a discharge of the debts provided in the plan if a debtor received a discharge in a case filed under Chapter 7,11,or 12 of the Bankruptcy Code in a ________ period preceding the date of the order for relief under Chapter 13.

Accepted Answer

A) two-year 
B) four-year 
C) five-year 
D) six-year 
A) two-year 
B) four-year 
C) five-year 
D) six-year

Question 15

Under Chapter 7,a debtor is denied discharge of all debts when:

Accepted Answer

A) the debtor has transferred property in order to defraud creditors. 
B) the debtor has unpaid tax liabilities. 
C) the debtor has made a preferential transfer to a creditor. 
D) the debtor has made a fraudulent transfer. 
A) the debtor has transferred property in order to defraud creditors. 
B) the debtor has unpaid tax liabilities. 
C) the debtor has made a preferential transfer to a creditor. 
D) the debtor has made a fraudulent transfer.

Question 16

Bettina knows that she is going bankrupt.One month before the filing of her voluntary petition,Bettina sells a painting worth $50,000 to her brother for $100.This transfer is void.

Accepted Answer

A) True 
 B)False

Question 17

________ refers to a situation whereby the court forces dissenting creditors to accept a reorganization plan when the court finds that it is fair and equitable.

Accepted Answer

A) Cram down 
B) Make one whole 
C) Divestiture 
D) Restitution 
A) Cram down 
B) Make one whole 
C) Divestiture 
D) Restitution

Question 18

Chapter 13 of the Bankruptcy Code gives individuals an opportunity to pay their debts free of such problems as garnishments and attachments of their property by creditors.

Accepted Answer

A) True 
 B)False

Question 19

A creditor might try to obtain an advantage over other creditors by obtaining a(n)________ on the debtor's property to secure an existing debt.

Accepted Answer

A) surety 
B) preferential lien 
C) presentment 
D) equity of redemption 
A) surety 
B) preferential lien 
C) presentment 
D) equity of redemption

Question 20

Under Chapter 13,if a debtor's income is above the state median income for the same family size,the plan must provide for payments over a period of ________ year(s)unless all claims will be fully paid in a shorter period.

Accepted Answer

A) one 
B) three 
C) five 
D) seven 
A) one 
B) three 
C) five 
D) seven

Exam 30: Bankruptcy

Unless state law provides otherwise,a bankrupt party may choose either the state's exemptions or the federal exemptions when deciding which property to exempt from bankruptcy.

In order to safeguard the debtor from reaffirmation agreements the court:

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

To which of the following is Chapter 11 not available?

The means test is designed to determine the:

Debtors have to file a statement of their calculations under the ________ as part of their schedule of current income and expenditures.

In a Chapter 7 liquidation proceeding,the claims of creditors are paid in which of the following order?

The Bankruptcy Code is a part of state law.

Bob has not paid his ex-wife alimony as required under court order.His ex-wife is trying to collect the alimony Bob owes her.Bob files a bankruptcy petition.This automatically stays his ex-wife's collection efforts.

________ refers to securing exempt personal property from secured creditors by paying them the full value of the collateral at the time the property is redeemed.

Creditors wishing to obtain funds from a bankrupt estate must typically file proof of a claim with the estate within a certain time.

Which of the following is true regarding reorganizations under Chapter 11?

Under the Bankruptcy Code the debtor:

A court cannot grant a discharge of the debts provided in the plan if a debtor received a discharge in a case filed under Chapter 7,11,or 12 of the Bankruptcy Code in a ________ period preceding the date of the order for relief under Chapter 13.

Under Chapter 7,a debtor is denied discharge of all debts when:

Bettina knows that she is going bankrupt.One month before the filing of her voluntary petition,Bettina sells a painting worth $50,000 to her brother for $100.This transfer is void.

________ refers to a situation whereby the court forces dissenting creditors to accept a reorganization plan when the court finds that it is fair and equitable.

Chapter 13 of the Bankruptcy Code gives individuals an opportunity to pay their debts free of such problems as garnishments and attachments of their property by creditors.

A creditor might try to obtain an advantage over other creditors by obtaining a(n)________ on the debtor's property to secure an existing debt.

Under Chapter 13,if a debtor's income is above the state median income for the same family size,the plan must provide for payments over a period of ________ year(s)unless all claims will be fully paid in a shorter period.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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