Question 1

A writ of execution is issued after a judgment against the debtor is entered in court.

Accepted Answer

A) True 
 B)False

Question 2

Match each statement with the correct term below.
-insider

Accepted Answer

A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. 
A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.

Question 3

The 1994 amendments allow the creditors to elect a trustee in a Chapter 11 proceeding if the court orders the appointment of a trustee for cause.

Accepted Answer

A) True 
 B)False

Question 4

Under exemptions in the Bankruptcy Code,a debtor may keep both $21,625 in equity in a residence and $3,450 in equity in a motor vehicle.

Accepted Answer

A) True 
 B)False

Question 5

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

Accepted Answer

A) unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B) unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C) In all events. 
D) Both (a) and (b) are alternative exceptions to the six-year rule. 
A) unless payments under that Chapter's plan totaled at least 100% of allowed unsecured claims. 
B) unless payments under Chapter 13 totaled at least 70% of allowed unsecured claims and the plan was the debtor's best effort. 
C) In all events. 
D) Both (a) and (b) are alternative exceptions to the six-year rule.

Question 6

Chapter 3 of the Bankruptcy Code contains provisions dealing with the commencement of a case in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 7

Match each statement with the correct term below.
-trustee

Accepted Answer

A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. 
A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.

Question 8

Lowell recently graduated from college with a degree in business administration,but has been unable to find a job.He decided to file a Chapter 7 petition with the Bankruptcy Court.He has the following assets:
a.$1,200 in equity in a new car which he purchased with a loan from the bank.
b.$5,000 in equity in his residence,a condominium secured by a mortgage.
c.$100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant.
d.$750 in business administration books including a hardly used copy of Mann and Roberts, Essentials of Business Law and the Legal Environment.
e.a $1,000 retainer for his teeth prescribed by his orthodontist.
His debts are as follows:
a.$10,000 in student loans.
b.$20,000 to the bank for his car,which is secured by the car.
c.$5,000 in unsecured credit card debts.
Under federal exemptions,what can he keep? What will each of the creditors receive?

Accepted Answer

Assets-Lowell can keep up to $21,625 in

Question 9

The Bankruptcy Code grants to U.S.District Courts:

Accepted Answer

A) original and exclusive jurisdiction over all bankruptcy cases. 
B) original, but not exclusive, jurisdiction over civil proceedings arising under bankruptcy cases. 
C) exclusive jurisdiction over all the debtor's property. 
D) All of the above. 
A) original and exclusive jurisdiction over all bankruptcy cases. 
B) original, but not exclusive, jurisdiction over civil proceedings arising under bankruptcy cases. 
C) exclusive jurisdiction over all the debtor's property. 
D) All of the above.

Question 10

A statutory lien arises solely by force of statute and includes a security interest and a judicial lien.

Accepted Answer

A) True 
 B)False

Question 11

The Bankruptcy Code exempts specified property of an individual debtor from bankruptcy.What are some of these exemptions?

Accepted Answer

Specified property would inclu

Question 12

Alimony and support payments owed to the debtor who files bankruptcy are part of the bankruptcy estate that can be distributed to the debtor's creditors for the payment of allowed claims filed with the bankruptcy court.

Accepted Answer

A) True 
 B)False

Question 13

Under the Bankruptcy Act,the debtor must file which of the following?

Accepted Answer

A) A list of creditors. 
B) Copies of tax returns for the previous five years. 
C) A list of family members and persons who might be considered "insiders." 
D) All of the above. 
A) A list of creditors. 
B) Copies of tax returns for the previous five years. 
C) A list of family members and persons who might be considered "insiders." 
D) All of the above.

Question 14

If the debtor contests the involuntary petition for bankruptcy,the court must enter an order for relief against the debtor.

Accepted Answer

A) True 
 B)False

Question 15

What are the duties of a trustee under Chapter 7?

Accepted Answer

A) To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B) To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C) To rehabilitate the accounts of the debtor. 
D) (a) and (c), but not (b). 
E) (a) and (b), but not (c). 
A) To use, sell, or lease property of the estate and to deposit or invest money of the estate. 
B) To employ attorneys, accountants, appraisers, or auctioneers and assume or reject any executory contract or unexpired lease of the debtor. 
C) To rehabilitate the accounts of the debtor. 
D) (a) and (c), but not (b). 
E) (a) and (b), but not (c).

Question 16

In the case of Hamilton v.Lanning,the court:

Accepted Answer

A) stated that the Bankruptcy Code did not define the term "projected disposable income" until enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. 
B) dealt with the issue of liquidation of nonexempt assets under Chapter 7 of the Bankruptcy Code. 
C) found that when a bankruptcy court calculates a Chapter 13 debtor's projected disposable income, the court may adjust for changes in the debtor's income or expenses that are virtually certain instead of using a mechanical approach. 
D) agreed with the petitioner's argument that a debtor's projected disposable income should be determined using a mechanical approach of multiplying past average monthly disposable income by the number of months in a debtor's plan. 
A) stated that the Bankruptcy Code did not define the term "projected disposable income" until enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. 
B) dealt with the issue of liquidation of nonexempt assets under Chapter 7 of the Bankruptcy Code. 
C) found that when a bankruptcy court calculates a Chapter 13 debtor's projected disposable income, the court may adjust for changes in the debtor's income or expenses that are virtually certain instead of using a mechanical approach. 
D) agreed with the petitioner's argument that a debtor's projected disposable income should be determined using a mechanical approach of multiplying past average monthly disposable income by the number of months in a debtor's plan.

Question 17

Match each statement with the correct term below.
-chattel paper

Accepted Answer

A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts. 
A) The right in personal property that secures payment or performance of an obligation. 
B) Goods that are so related to real property that they are considered part of the real estate. 
C) A document filed to provide notice of a security interest. 
D) Property subject to a security interest. 
E) Tangible or electronic record that evidences both a debt and a security interest in specific goods.
F)Seizure of property to bring it under the custody of the court; creation of security interest enforceable against a debtor.
G)Delivery of personal property to a creditor as security for payment of a debt.
H)An agreement between the debtor and creditor creating a security interest.
I)Goods bought or used primarily for personal, family, or household purposes.
J)Creditor's remedy involving a statutory proceeding directed at a third person who owes a debt to or has property of a debtor.
K)A surety liable to a creditor immediately upon the default of a principal debtor.
L)Relative or general partner of debtor, partnership in which debtor is a partner, or corporation in which debtor is an officer, director, or controlling person.
M)The right of a surety to be relieved of his obligation to the creditor by having the principal debtor perform the obligation.
N)A surety's assumption of the creditor's rights.
O)A person who promises to answer for the payment of a debt or the performance of a duty owed to the creditor by the principal debtor upon the principal debtor's failure to perform.
P)Security interest in goods purchased; interest retained either by the seller of the goods or by a lender who advances the purchase price.
Q)Agreement by which one party obtains a security interest in the personal property of another to secure the payment of a debt.
R)The person responsible for collecting, liquidating, and distributing the debtor's estate.
S)A right to payment.
T)Enforceability of a security interest against third parties.
U)A claim with a lien on property of a debtor; a claim tied to specific property of the debtor.
V)Transfer made by the debtor to favored creditors before the date of bankruptcy and invalidated by the Bankruptcy Code.
W)An agreement between the debtor and two or more of her creditors that each will take a portion of his claim as full payment.
X)Prevents attempts by creditors to recover claims against the debtor.
Y)A voluntary transfer by the debtor of some or all of his property to a trustee, who applies the property to the payment of all of the debtor's debts.

Question 18

According to the 1994 amendments to the Bankruptcy Act,the U.S.Judicial Conference must adjust for inflation the dollar amounts of the requirements for filing involuntary cases,priorities,and exemptions every seven years.

Accepted Answer

A) True 
 B)False

Question 19

All but which one of the following would be exempt from bankruptcy under the federal law?

Accepted Answer

A) $500 received in child support. 
B) A $300 cocktail ring. 
C) A $200 cashmere sweater. 
D) A $10,000 truck. 
A) $500 received in child support. 
B) A $300 cocktail ring. 
C) A $200 cashmere sweater. 
D) A $10,000 truck.

Question 20

A debtor who files for bankruptcy can keep up to $1,450 in jewelry and all social security,veteran's and disability benefits under the exemptions found in the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcy

A writ of execution is issued after a judgment against the debtor is entered in court.

Match each statement with the correct term below. -insider

The 1994 amendments allow the creditors to elect a trustee in a Chapter 11 proceeding if the court orders the appointment of a trustee for cause.

Under exemptions in the Bankruptcy Code,a debtor may keep both $21,625 in equity in a residence and $3,450 in equity in a motor vehicle.

A debtor will be denied a Chapter 7 discharge if he or she has received a Chapter 13 discharge within the past six years:

Chapter 3 of the Bankruptcy Code contains provisions dealing with the commencement of a case in bankruptcy.

Match each statement with the correct term below. -trustee

The Bankruptcy Code grants to U.S.District Courts:

A statutory lien arises solely by force of statute and includes a security interest and a judicial lien.

The Bankruptcy Code exempts specified property of an individual debtor from bankruptcy.What are some of these exemptions?

Alimony and support payments owed to the debtor who files bankruptcy are part of the bankruptcy estate that can be distributed to the debtor's creditors for the payment of allowed claims filed with the bankruptcy court.

Under the Bankruptcy Act,the debtor must file which of the following?

If the debtor contests the involuntary petition for bankruptcy,the court must enter an order for relief against the debtor.

What are the duties of a trustee under Chapter 7?

In the case of Hamilton v.Lanning,the court:

Match each statement with the correct term below. -chattel paper

According to the 1994 amendments to the Bankruptcy Act,the U.S.Judicial Conference must adjust for inflation the dollar amounts of the requirements for filing involuntary cases,priorities,and exemptions every seven years.

All but which one of the following would be exempt from bankruptcy under the federal law?

A debtor who files for bankruptcy can keep up to $1,450 in jewelry and all social security,veteran's and disability benefits under the exemptions found in the Bankruptcy Code.

Introduction to Law

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Introduction to Contracts

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Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

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Form and Content

Transfer and Holder in Due Course

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Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

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Nature and Formation of Corporations

Financial Structure of Corporations

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Secured Transactions and Suretyship

Securities Regulation

Intellectual Property

Employment Law

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Interests in Real Property

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