Question 1

Match each statement with the correct term below.
-composition

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 2

Discharge relieves the debtor in bankruptcy from liability for all of his debts.

Accepted Answer

A) True 
 B)False

Question 3

Monica's husband is an accountant who keeps the books for her business.When it goes bankrupt,will Monica's husband's claim for services be allowed by the bankruptcy courts?

Accepted Answer

A) No, since he is an insider. 
B) No, because it would be difficult to prove that services were actually rendered. 
C) Yes, but only up to the reasonable value. 
D) Yes, as long as he is not an officer of the corporation. 
A) No, since he is an insider. 
B) No, because it would be difficult to prove that services were actually rendered. 
C) Yes, but only up to the reasonable value. 
D) Yes, as long as he is not an officer of the corporation.

Question 4

Most student loans cannot be discharged under Chapter 13.

Accepted Answer

A) True 
 B)False

Question 5

An automatic stay ends:

Accepted Answer

A) upon termination or dismissal of the bankruptcy case. 
B) upon the debtor's receipt of a discharge. 
C) only by court order. 
D) Both (a) and (b). 
A) upon termination or dismissal of the bankruptcy case. 
B) upon the debtor's receipt of a discharge. 
C) only by court order. 
D) Both (a) and (b).

Question 6

Creditors entitled to priority are paid before:

Accepted Answer

A) the debtor's attorney. 
B) secured creditors. 
C) unsecured creditors who file their claims on time. 
D) All of the above. 
A) the debtor's attorney. 
B) secured creditors. 
C) unsecured creditors who file their claims on time. 
D) All of the above.

Question 7

The court will not allow any claim that:

Accepted Answer

A) is unenforceable against the debtor or her property. 
B) is for unmatured interest. 
C) may be offset against a debt owing the debtor. 
D) is for insider or attorney services in excess of the reasonable value of such services. 
E) All of the above. 
A) is unenforceable against the debtor or her property. 
B) is for unmatured interest. 
C) may be offset against a debt owing the debtor. 
D) is for insider or attorney services in excess of the reasonable value of such services. 
E) All of the above.

Question 8

Voidable preferences include all of the following EXCEPT:

Accepted Answer

A) a transfer of property of the debtor to or for the benefit of a creditor. 
B) payment of taxes owed to a governmental unit. 
C) a transfer of property while the debtor was insolvent. 
D) a transfer that enables a creditor to receive more than he would have received under Chapter 7. 
A) a transfer of property of the debtor to or for the benefit of a creditor. 
B) payment of taxes owed to a governmental unit. 
C) a transfer of property while the debtor was insolvent. 
D) a transfer that enables a creditor to receive more than he would have received under Chapter 7.

Question 9

Chapter 14 of the Bankruptcy Code covers cross-border/transnational insolvencies.

Accepted Answer

A) True 
 B)False

Question 10

The debtor has an absolute right to have his bankruptcy case dismissed,whether the case is under Chapter 7,11,or 13.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?

Accepted Answer

A) A $10,000 judgment that has not yet been executed. 
B) Medical expenses of $25,000. 
C) Credit card debts of $15,000 from two years ago. 
D) All of the above are dischargeable. 
E) None of the above are dischargeable. 
A) A $10,000 judgment that has not yet been executed. 
B) Medical expenses of $25,000. 
C) Credit card debts of $15,000 from two years ago. 
D) All of the above are dischargeable. 
E) None of the above are dischargeable.

Question 12

Under the 2005 Act:

Accepted Answer

A) tax-exempt retirement accounts are included in the bankruptcy estate. 
B) a debtor's state exemptions are governed by the law of the state where the debtor was domiciled for 730 days immediately before filing. 
C) homestead exemptions are determined by state laws. 
D) exempt property cannot be reached for the debtor's obligations, including domestic support obligations. 
A) tax-exempt retirement accounts are included in the bankruptcy estate. 
B) a debtor's state exemptions are governed by the law of the state where the debtor was domiciled for 730 days immediately before filing. 
C) homestead exemptions are determined by state laws. 
D) exempt property cannot be reached for the debtor's obligations, including domestic support obligations.

Question 13

Under Chapter 11,a class that is not impaired under a plan is deemed to have accepted the plan.

Accepted Answer

A) True 
 B)False

Question 14

Match each statement with the correct term below.
-collateral

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 15

Regarding priority claims:

Accepted Answer

A) each claimant in a priority class shares pro rata if the assets cannot satisfy all claims in the class. 
B) employees have a priority for contributions to employee benefit plans but only to the extent that the $4,500 cap for unpaid wages has not been reached. 
C) subordination agreements are not enforceable. 
D) All of the above. 
E) Both (a) and (c) are correct. 
A) each claimant in a priority class shares pro rata if the assets cannot satisfy all claims in the class. 
B) employees have a priority for contributions to employee benefit plans but only to the extent that the $4,500 cap for unpaid wages has not been reached. 
C) subordination agreements are not enforceable. 
D) All of the above. 
E) Both (a) and (c) are correct.

Question 16

In a Chapter 7 proceeding,an unsecured creditor who files a claim with the court after the deadline because he is too busy planning and going on a vacation would be totally unable to collect.

Accepted Answer

A) True 
 B)False

Question 17

Evelyn and Charles derive 80 percent of their gross income from family farming on their 78-acre farm.Currently,their debts from the farming operation are $137,600 and their other debts total $19,450.If they decide bankruptcy is their best option in their present situation,they should file their case under Chapter 15 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 18

An involuntary bankruptcy petition,even if contested by the debtor,may still result in an "order for relief" if:

Accepted Answer

A) the debtor generally is not paying his admitted debts as they come due. 
B) the debtor failed to pay three or more debtors whose total debts equal $5,000. 
C) a custodian was appointed within 120 days before the filing of the petition. 
D) Both (a) and (c). 
A) the debtor generally is not paying his admitted debts as they come due. 
B) the debtor failed to pay three or more debtors whose total debts equal $5,000. 
C) a custodian was appointed within 120 days before the filing of the petition. 
D) Both (a) and (c).

Question 19

Match each statement with the correct term below.
-surety

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 20

Abe has an allowed claim of $5,000 against the estate of Deborah and has a security interest in her art collection in the amount of $3,000 of the $5,000 claim.

Accepted Answer

A) Abe will recover nothing in the bankruptcy proceeding. 
B) Abe will recover $5,000 in the bankruptcy proceeding. 
C) Abe has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D) It would be a voidable preference to pay Abe the full $5,000. 
A) Abe will recover nothing in the bankruptcy proceeding. 
B) Abe will recover $5,000 in the bankruptcy proceeding. 
C) Abe has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000. 
D) It would be a voidable preference to pay Abe the full $5,000.

Exam 38: Bankruptcy

Match each statement with the correct term below. -composition

Discharge relieves the debtor in bankruptcy from liability for all of his debts.

Monica's husband is an accountant who keeps the books for her business.When it goes bankrupt,will Monica's husband's claim for services be allowed by the bankruptcy courts?

Most student loans cannot be discharged under Chapter 13.

An automatic stay ends:

Creditors entitled to priority are paid before:

The court will not allow any claim that:

Voidable preferences include all of the following EXCEPT:

Chapter 14 of the Bankruptcy Code covers cross-border/transnational insolvencies.

The debtor has an absolute right to have his bankruptcy case dismissed,whether the case is under Chapter 7,11,or 13.

Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?

Under the 2005 Act:

Under Chapter 11,a class that is not impaired under a plan is deemed to have accepted the plan.

Match each statement with the correct term below. -collateral

Regarding priority claims:

In a Chapter 7 proceeding,an unsecured creditor who files a claim with the court after the deadline because he is too busy planning and going on a vacation would be totally unable to collect.

An involuntary bankruptcy petition,even if contested by the debtor,may still result in an "order for relief" if:

Match each statement with the correct term below. -surety

Abe has an allowed claim of $5,000 against the estate of Deborah and has a security interest in her art collection in the amount of $3,000 of the $5,000 claim.

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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