Question 1

Match each statement with the correct term below.
-pledge

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

Match each statement with the correct term below.
-financing statement

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

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include:

Accepted Answer

A) compositions. 
B) non-statutory assignments for the benefit of creditors. 
C) receiverships under the direction of a court with equity powers. 
D) All of the above. 
A) compositions. 
B) non-statutory assignments for the benefit of creditors. 
C) receiverships under the direction of a court with equity powers. 
D) All of the above.

Question 4

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 5

Edward's Excursions Inc.filed for Chapter 7 bankruptcy.It has $100,000 of assets and has the following debts outstanding:
$50,000 to Arthur secured by a boat worth $25,000.
$30,000 to Bradley secured by a truck worth $30,000.
$20,000 to Clarence unsecured.
The month before Edward's closed and filed for bankruptcy,its employees earned $10,000 for which they did not get paid.They also should have been credited with $3,000 for their pension plan.Edward's owes $4,000 in back taxes.In the process of administering the estate,the trustee paid $5,000 in attorney fees.In what order will these claims be paid?

Accepted Answer

Secured-Arthur gets $25,000 from the boa

Question 6

A debtor may not convert a Chapter 7 case to a Chapter 11 or 13 case.

Accepted Answer

A) True 
 B)False

Question 7

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1)an automobile valued at $1,800; (2)a homestead valued at $75,000,on which First Bank holds a mortgage of $60,000; (3)personal jewelry valued at $1,100; and (4)monthly disability payments of $1,000.Assuming Edith elects to use the exemptions listed in the Bankruptcy Code,what property may Edith keep?

Accepted Answer

A) The disability payments only. 
B) The disability payments and the homestead only. 
C) The disability payments plus the automobile, the homestead, and the jewelry. 
D) Nothing. She must sell all of her assets and have the proceeds distributed to the creditors, and she must turn the disability payments over to the trustee. 
A) The disability payments only. 
B) The disability payments and the homestead only. 
C) The disability payments plus the automobile, the homestead, and the jewelry. 
D) Nothing. She must sell all of her assets and have the proceeds distributed to the creditors, and she must turn the disability payments over to the trustee.

Question 8

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

Accepted Answer

A) Writ of execution. 
B) Garnishment. 
C) Attachment. 
D) Supplementary proceeding. 
A) Writ of execution. 
B) Garnishment. 
C) Attachment. 
D) Supplementary proceeding.

Question 9

Which of the following debts would be discharged in bankruptcy?

Accepted Answer

A) Consumer credit loans for a stove. 
B) Property taxes on a beach house. 
C) Student loans. 
D) Alimony payments past due. 
A) Consumer credit loans for a stove. 
B) Property taxes on a beach house. 
C) Student loans. 
D) Alimony payments past due.

Question 10

Once a Chapter 13 plan has been confirmed,it may:

Accepted Answer

A) be modified at the debtor's request but only if the trustee agrees. 
B) be modified only if all unsecured creditors agree. 
C) not be modified. 
D) be modified at the request of the debtor, the trustee, or a holder of an unsecured claim. 
A) be modified at the debtor's request but only if the trustee agrees. 
B) be modified only if all unsecured creditors agree. 
C) not be modified. 
D) be modified at the request of the debtor, the trustee, or a holder of an unsecured claim.

Question 11

A court will not grant a discharge under Chapter 7 to a debtor who:

Accepted Answer

A) has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B) has made false claims to the court. 
C) has destroyed collateral. 
D) All of the above. 
A) has been granted a Chapter 7 or 11 discharge within eight years prior to filing. 
B) has made false claims to the court. 
C) has destroyed collateral. 
D) All of the above.

Question 12

Fritz is seriously considering bankruptcy,because he has a large number of outstanding debts,the principal ones of which are as follows: (1)he owes his ex-wife $25,000 in back alimony and child support; (2)he owes $20,000 in guaranteed student loans; (3)he has a lawsuit pending against him in which his ex-girlfriend is asking for $50,000 in damages (the suit is based upon the intentional tort of battery and arises from an incident in which Fritz got mad at his girlfriend and hit her); and (4)he owes the First Bank $20,000 for a loan secured by his new sports car.Should Fritz file for bankruptcy?

Accepted Answer

Unless Fritz has other large debts,he sh

Question 13

Pre-judgment attachment permits a creditor to seize the debtor's property:

Accepted Answer

A) to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B) if the defendant has not paid his debts on time. 
C) when the defendant has filed for bankruptcy. 
D) if the defendant cannot be persuaded to come to court. 
A) to prevent the debtor from disposing of assets before litigation would result in a judgment for the creditor. 
B) if the defendant has not paid his debts on time. 
C) when the defendant has filed for bankruptcy. 
D) if the defendant cannot be persuaded to come to court.

Question 14

The various chapters of the Bankruptcy Code are the only options for resolving the conflict between creditor rights and debtor relief.

Accepted Answer

A) True 
 B)False

Question 15

Able gets a judgment against Baker in state court for $50,000 on July 1.On July 15,Baker files a bankruptcy petition under Chapter 7.In this case:

Accepted Answer

A) Able is a lien creditor. 
B) unsecured creditors will share proportionately with Able. 
C) the judgment is a preferential transfer that will be invalidated by the trustee. 
D) Both (a) and (b) are true. 
A) Able is a lien creditor. 
B) unsecured creditors will share proportionately with Able. 
C) the judgment is a preferential transfer that will be invalidated by the trustee. 
D) Both (a) and (b) are true.

Question 16

More than 99 percent of all bankruptcy petitions are filed voluntarily.

Accepted Answer

A) True 
 B)False

Question 17

A plan of reorganization under Chapter 13 will be confirmed when the:

Accepted Answer

A) debtor has not been discharged before. 
B) unsecured creditors are not discharged. 
C) unsecured creditors receive the same amount as the secured creditors. 
D) unsecured creditors receive at least as much as they would have if the debtor had liquidated. 
A) debtor has not been discharged before. 
B) unsecured creditors are not discharged. 
C) unsecured creditors receive the same amount as the secured creditors. 
D) unsecured creditors receive at least as much as they would have if the debtor had liquidated.

Question 18

The bankruptcy definition of "insolvency" is a financial condition such that the sum of one's debts exceeds the sum of all one's property at fair valuation.

Accepted Answer

A) True 
 B)False

Question 19

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following claims will be paid first from the debtor's estate under Chapter 7?

Accepted Answer

A) A gap creditor with a claim of $2,000. 
B) A state claiming $5,000 in back taxes. 
C) The trustee's expenses of $3,000. 
D) Employees claiming unpaid wages of $5,000 for wages earned within 90 days of the bankruptcy filing. 
A) A gap creditor with a claim of $2,000. 
B) A state claiming $5,000 in back taxes. 
C) The trustee's expenses of $3,000. 
D) Employees claiming unpaid wages of $5,000 for wages earned within 90 days of the bankruptcy filing.

Exam 38: Bankruptcy

Match each statement with the correct term below. -pledge

Match each statement with the correct term below. -financing statement

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include:

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

A debtor may not convert a Chapter 7 case to a Chapter 11 or 13 case.

Which of the following is both a prejudgment and a postjudgment remedy for a creditor?

Which of the following debts would be discharged in bankruptcy?

Once a Chapter 13 plan has been confirmed,it may:

A court will not grant a discharge under Chapter 7 to a debtor who:

Pre-judgment attachment permits a creditor to seize the debtor's property:

The various chapters of the Bankruptcy Code are the only options for resolving the conflict between creditor rights and debtor relief.

Able gets a judgment against Baker in state court for $50,000 on July 1.On July 15,Baker files a bankruptcy petition under Chapter 7.In this case:

More than 99 percent of all bankruptcy petitions are filed voluntarily.

A plan of reorganization under Chapter 13 will be confirmed when the:

The bankruptcy definition of "insolvency" is a financial condition such that the sum of one's debts exceeds the sum of all one's property at fair valuation.

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Which of the following claims will be paid first from the debtor's estate under Chapter 7?

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