Question 1

Which chapter of the Bankruptcy Act allows for the adjustment of debts of an individual with regular income?

Accepted Answer

A) Chapter 7. 
B) Chapter 11. 
C) Chapter 12. 
D) Chapter 13. 
A) Chapter 7. 
B) Chapter 11. 
C) Chapter 12. 
D) Chapter 13.

Question 2

Match each statement with the correct term below.
-claim

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

Chapter 3 of the Bankruptcy Code deals with:

Accepted Answer

A) the meetings of creditors. 
B) the officers who administer the case. 
C) the administrative powers of the officers who administer the case. 
D) All of the above. 
A) the meetings of creditors. 
B) the officers who administer the case. 
C) the administrative powers of the officers who administer the case. 
D) All of the above.

Question 4

In a Chapter 11 or 13 proceeding,the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

Accepted Answer

A) True 
 B)False

Question 5

All but which one of the following is a purpose of bankruptcy legislation?

Accepted Answer

A) To preserve existing business relations. 
B) To punish recalcitrant debtors. 
C) To bring about a quick, equitable distribution of the debtor's property among creditors. 
D) To allow rehabilitation of debtors. 
A) To preserve existing business relations. 
B) To punish recalcitrant debtors. 
C) To bring about a quick, equitable distribution of the debtor's property among creditors. 
D) To allow rehabilitation of debtors.

Question 6

Match each statement with the correct term below.
-PMSI

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 7

In March,Margaret made a loan to Pete for $10,000.Three months later,she began to hear rumors about Pete's failing financial condition.When in July,Pete asked her to loan him an additional $2,000 to buy inventory,Margaret required a security interest in the inventory and also demanded that Pete secure the first loan with his personal automobile.In September,Pete filed bankruptcy.Will these security interests stand up?

Accepted Answer

A) Yes, if they are properly filed. 
B) Yes, since they are for antecedent debts. 
C) No, both will be voidable preferences. 
D) No, the security interest in the automobile would be a voidable preference. 
A) Yes, if they are properly filed. 
B) Yes, since they are for antecedent debts. 
C) No, both will be voidable preferences. 
D) No, the security interest in the automobile would be a voidable preference.

Question 8

In bankruptcy law,an insider may include:

Accepted Answer

A) a relative. 
B) a general or limited partner of the debtor. 
C) the trustee. 
D) Both (a) and (b). 
A) a relative. 
B) a general or limited partner of the debtor. 
C) the trustee. 
D) Both (a) and (b).

Question 9

United States trustees:

Accepted Answer

A) are government officials appointed by the U.S. Attorney General. 
B) have administrative responsibilities in bankruptcy cases in almost all of the districts. 
C) select bankruptcy trustees. 
D) are the same as bankruptcy trustees. 
E) Choices (a), (b), and (c) are correct. 
A) are government officials appointed by the U.S. Attorney General. 
B) have administrative responsibilities in bankruptcy cases in almost all of the districts. 
C) select bankruptcy trustees. 
D) are the same as bankruptcy trustees. 
E) Choices (a), (b), and (c) are correct.

Question 10

Match each statement with the correct term below.
-fixtures

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 11

Any person who may be a debtor under Chapter 7,except a stockbroker or a commodity broker but including railroads,may be a debtor under Chapter 11.

Accepted Answer

A) True 
 B)False

Question 12

An automatic stay would not prevent a creditor from creating a lien against the debtor's property.

Accepted Answer

A) True 
 B)False

Question 13

Match each statement with the correct term below.
-perfection

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 14

Which of the following would not be a voidable transfer if made within 90 days of bankruptcy?

Accepted Answer

A) An exchange for new value. 
B) A consumer's transfer of property valued at $500. 
C) A payment made in the ordinary course of business. 
D) None of the above are voidable transfers. 
A) An exchange for new value. 
B) A consumer's transfer of property valued at $500. 
C) A payment made in the ordinary course of business. 
D) None of the above are voidable transfers.

Question 15

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition and must be insolvent to do so.

Accepted Answer

A) True 
 B)False

Question 16

Garnishment is only a post-judgment remedy.

Accepted Answer

A) True 
 B)False

Question 17

Match each statement with the correct term below.
-exoneration

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

Match each statement with the correct term below.
-consumer goods

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 19

Chapter 7 applies to all debtors,with the exception of railroads,insurance companies,banks,savings and loan associations,homestead associations,and credit unions.

Accepted Answer

A) True 
 B)False

Question 20

Match each statement with the correct term below.
-assignment for benefit of creditors

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.

Exam 38: Bankruptcy

Which chapter of the Bankruptcy Act allows for the adjustment of debts of an individual with regular income?

Match each statement with the correct term below. -claim

Chapter 3 of the Bankruptcy Code deals with:

In a Chapter 11 or 13 proceeding,the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

All but which one of the following is a purpose of bankruptcy legislation?

Match each statement with the correct term below. -PMSI

In bankruptcy law,an insider may include:

United States trustees:

Match each statement with the correct term below. -fixtures

Any person who may be a debtor under Chapter 7,except a stockbroker or a commodity broker but including railroads,may be a debtor under Chapter 11.

An automatic stay would not prevent a creditor from creating a lien against the debtor's property.

Match each statement with the correct term below. -perfection

Which of the following would not be a voidable transfer if made within 90 days of bankruptcy?

Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition and must be insolvent to do so.

Garnishment is only a post-judgment remedy.

Match each statement with the correct term below. -exoneration

Match each statement with the correct term below. -consumer goods

Chapter 7 applies to all debtors,with the exception of railroads,insurance companies,banks,savings and loan associations,homestead associations,and credit unions.

Match each statement with the correct term below. -assignment for benefit of creditors

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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