Question 1

A major purpose of the Bankruptcy Code is to:

Accepted Answer

A)  ensure that the debtor can pick and choose between creditors. 
B)  protect honest debtors against the demands for payment by creditors. 
C)  ensure that a debtor can never be discharged of the debts he owes to the creditors. 
D)  protect creditors from debtors who try to extend the given time to pay their debt. 
A)  ensure that the debtor can pick and choose between creditors. 
B)  protect honest debtors against the demands for payment by creditors. 
C)  ensure that a debtor can never be discharged of the debts he owes to the creditors. 
D)  protect creditors from debtors who try to extend the given time to pay their debt. B

Question 2

Debts created by larceny or embezzlement by the debtor while acting in a fiduciary capacity are _____.

Accepted Answer

A)  dischargeable 
B)  secured 
C)  nondischargeable 
D)  unsecured 
A)  dischargeable 
B)  secured 
C)  nondischargeable 
D)  unsecured C

Question 3

A bankrupt person's estate is administered by the _____.

Accepted Answer

A)  creditors 
B)  creditors' committee 
C)  trustee 
D)  bankruptcy court 
A)  creditors 
B)  creditors' committee 
C)  trustee 
D)  bankruptcy court C

Question 4

The person who files a voluntary petition must be insolvent.

Accepted Answer

A) True 
 B)False

Question 5

If a debtor has more than a dozen creditors,an involuntary petition to declare bankruptcy must be signed by at least three creditors.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of the Bankruptcy Code?

Accepted Answer

A)  It is a provision of the Uniform Commercial Code. 
B)  It is a federal law. 
C)  It is a state law. 
D)  It is both, a federal law as well as a state law. 
A)  It is a provision of the Uniform Commercial Code. 
B)  It is a federal law. 
C)  It is a state law. 
D)  It is both, a federal law as well as a state law.

Question 7

Bill filed a petition for bankruptcy under Chapter 7 of the Bankruptcy Act.Bill listed,among others,the following debts: a debt to the National Bank for $10,000 secured by his 1980 truck,which is valued at $3,500; an unsecured debt to his friend,Francis; a $500 debt to the IRS for 1989 federal income taxes; and a $500 student loan to the university which was due one year ago.In this scenario,_____.

Accepted Answer

A)  the $500 debt to the IRS is a nondischargeable debt 
B)  Francis can claim the debt without filing a proof of claim 
C)  the $500 student loan to the university is a dischargeable debt 
D)  the bank can receive preferential payment because the debt owed to it is the highest 
A)  the $500 debt to the IRS is a nondischargeable debt 
B)  Francis can claim the debt without filing a proof of claim 
C)  the $500 student loan to the university is a dischargeable debt 
D)  the bank can receive preferential payment because the debt owed to it is the highest

Question 8

Chapter 11 of the Bankruptcy Code deals with _____.

Accepted Answer

A)  liquidations 
B)  consumer debt adjustments 
C)  reorganizations 
D)  fishing operations 
A)  liquidations 
B)  consumer debt adjustments 
C)  reorganizations 
D)  fishing operations

Question 9

An order of relief is granted automatically if the debtor does not contest the filing of an involuntary petition.

Accepted Answer

A) True 
 B)False

Question 10

Who are the different unsecured creditors who receive distributions of a debtor's estate?

Accepted Answer

Unsecured creditors include (1)those cre

Question 11

Voluntary petitions in bankruptcy may be filed by a(n)_____.

Accepted Answer

A)  individual 
B)  insurance company 
C)  municipal corporation 
D)  bank 
A)  individual 
B)  insurance company 
C)  municipal corporation 
D)  bank

Question 12

Educational loans are dischargeable debts.

Accepted Answer

A) True 
 B)False

Question 13

A reorganization plan under Chapter 11 of the Bankruptcy Code is essentially a:

Accepted Answer

A)  supervised attempt by the state to solve a debtor's financial problems. 
B)  contract between a debtor and its creditors. 
C)  contract filed voluntarily by the creditors. 
D)  contract between a debtor and its trustees. 
A)  supervised attempt by the state to solve a debtor's financial problems. 
B)  contract between a debtor and its creditors. 
C)  contract filed voluntarily by the creditors. 
D)  contract between a debtor and its trustees.

Question 14

A straight bankruptcy is brought under _____ of the Bankruptcy Code.

Accepted Answer

A)  Chapter 7 
B)  Chapter 11 
C)  Chapter 13 
D)  Chapter 15 
A)  Chapter 7 
B)  Chapter 11 
C)  Chapter 13 
D)  Chapter 15

Question 15

When a debtor files a bankruptcy petition,the creditor may be relieved from an automatic stay on his actions against the debtor if:

Accepted Answer

A)  the creditor can show that the bankruptcy petition does not give adequate protection to the debtor. 
B)  the debtor files a plan of reorganization that has a reasonable chance of being confirmed. 
C)  his actions are aimed at obtaining possession of the debtor's property. 
D)  the creditor can show that the stay jeopardizes his interest in certain property. 
A)  the creditor can show that the bankruptcy petition does not give adequate protection to the debtor. 
B)  the debtor files a plan of reorganization that has a reasonable chance of being confirmed. 
C)  his actions are aimed at obtaining possession of the debtor's property. 
D)  the creditor can show that the stay jeopardizes his interest in certain property.

Question 16

What are the primary purposes of the Bankruptcy Code?

Accepted Answer

The primary purposes of the Bankruptcy C

Question 17

Describe the creditor actions that are automatically held in abeyance when the debtor files a bankruptcy petition.

Accepted Answer

The creditor actions held in abeyance in

Question 18

People who file voluntary petitions:

Accepted Answer

A)  must be insolvent. 
B)  must be able to allege that they have debts. 
C)  seek to have the debtors' assets distributed among the trustees. 
D)  must have 12 or more creditors. 
A)  must be insolvent. 
B)  must be able to allege that they have debts. 
C)  seek to have the debtors' assets distributed among the trustees. 
D)  must have 12 or more creditors.

Question 19

A liquidation proceeding was traditionally known as straight bankruptcy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following payments is considered preferential?

Accepted Answer

A)  Payments made in the ordinary course of business 
B)  Payment of monthly utility bills 
C)  Payment made by an insolvent debtor within 250 days of the filing of the bankruptcy petition 
D)  Payment to a creditor giving him a greater percentage of a preexisting debt than other similar creditors 
A)  Payments made in the ordinary course of business 
B)  Payment of monthly utility bills 
C)  Payment made by an insolvent debtor within 250 days of the filing of the bankruptcy petition 
D)  Payment to a creditor giving him a greater percentage of a preexisting debt than other similar creditors

Exam 44: Bankruptcy-Part Nine Government Regulation

A major purpose of the Bankruptcy Code is to:

Debts created by larceny or embezzlement by the debtor while acting in a fiduciary capacity are _____.

A bankrupt person's estate is administered by the _____.

The person who files a voluntary petition must be insolvent.

If a debtor has more than a dozen creditors,an involuntary petition to declare bankruptcy must be signed by at least three creditors.

Which of the following statements is true of the Bankruptcy Code?

Chapter 11 of the Bankruptcy Code deals with _____.

An order of relief is granted automatically if the debtor does not contest the filing of an involuntary petition.

Who are the different unsecured creditors who receive distributions of a debtor's estate?

Voluntary petitions in bankruptcy may be filed by a(n)_____.

Educational loans are dischargeable debts.

A reorganization plan under Chapter 11 of the Bankruptcy Code is essentially a:

A straight bankruptcy is brought under _____ of the Bankruptcy Code.

When a debtor files a bankruptcy petition,the creditor may be relieved from an automatic stay on his actions against the debtor if:

What are the primary purposes of the Bankruptcy Code?

Describe the creditor actions that are automatically held in abeyance when the debtor files a bankruptcy petition.

People who file voluntary petitions:

A liquidation proceeding was traditionally known as straight bankruptcy.

Which of the following payments is considered preferential?

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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