Exam 38: Bankruptcy

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

A debt is an obligation to pay money owed by a debtor to a creditor.

A trustee in bankruptcy may avoid which of the following?

Match each statement with the correct term below. -secured claim

Match each statement with the correct term below. -subrogation

Bill has loaned Mark $500,which Mark agreed to repay on January 15,2012.If Mark files a voluntary petition of bankruptcy on August 1,2011,Bill has a claim as a creditor.

A trustee under a Chapter 11 or 13 proceeding performs the same duties as a Chapter 7 trustee.

Bankruptcy legislation serves a dual purpose.What are these purposes?

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

In liquidation cases the creditors look to the debtor's property at the commencement of the bankruptcy proceeding.

Under Chapter ___________,the bankruptcy estate does not include wages earned after commencement of the case.

What is the trustee in bankruptcy and what is the role of the trustee in bankruptcy proceedings? What powers and duties does the trustee have and what sorts of transactions the trustee can attack?

John's brother,Phil,loaned him $10,000 to start his business.John didn't do too well and planned to file for bankruptcy.In May,he gave Phil his car worth $8,000 to satisfy the debt.John filed his petition in November.After liquidation,if the car were included in his assets,every unsecured debtor would have received 85% of the debt owing to him.Will this be a voidable preference?

A private employer:

Under the exemptions found in the federal Bankruptcy Code,which of the following items may the debtor keep?

Match each statement with the correct term below. -secured transaction

If the debtor is an individual whose debts are primarily consumer debts,the trustee may not avoid any transfer,within 90 days of bankruptcy,of property valued at less than $600.

Match each statement with the correct term below. -security interest

The court has the sole right to accept or reject a proposed plan of reorganization under Chapter 11.

An involuntary petition for bankruptcy can be filed against a: