Exam 30: Bankruptcy Law

Fact Pattern 30-1A (Questions A8-A9 apply) Stacy sells her all-terrain vehicle (ATV)to her brother Terrill for $1,000.Twelve days later,Stacy files a petition in bankruptcy for relief through a liquidation. -Refer to Fact Pattern 30-1A.Regarding the sale of the ATV,the trustee may

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

To falsify information on official bankruptcy schedules is a crime.

Any "person" may be a debtor in a liquidation proceeding.

Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business.To accomplish this goal,Swim & Trim should file a petition in bankruptcy for relief through

In the distribution of the debtor's estate,secured creditors take priority over unsecured creditors.

Hasty Pastries declares bankruptcy,idling Hasty's delivery vehicles.The court can compel Hasty to make periodic cash payments to a credi?tor with a se?cured interest in the vehicles to offset the depreciation in their value.This is

Kipper files a petition in bankruptcy.Kipper's dischargeable debts include

Job Service,Inc.,needs funds to meet its payroll,to make other cur?rent operating expenses,and to pay its creditors.Kelly,Job Service's only shareholder,loans the company $10,000 and accepts a promissory note signed on behalf of Job Service by Luna,the firm's accountant.Job Service's fi?nancial problems continue,however,and the firm's creditors file an in?voluntary petition to force it into bankruptcy.Is Kelly entitled to repay?ment of the loan to Job Service? If so,what is the priority of the claim?

Certain debtors may not qualify to have all debts discharged in bankruptcy.

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

The procedure for filing a family-farmer bankruptcy plan is very similar to the proce?dure for filing a repayment plan.

The same principles that govern the filing of a liquidation petition apply to reorganization proceedings.

Current City (CC)is a retail seller of television sets.CC sells Dhani a $5,000 large-screen,high-definition,plasma set on a retail installment security agreement in which he pays $100 down and agrees to pay the balance in equal installments.CC retains a security interest in the set,and perfects that interest by filing a financing statement centrally.Two months later,Dhani is in default on the payments to CC and is involun?tarily petitioned into bankruptcy by other creditors.Discuss CC's right to repossess the TV set and whether CC has priority over the trustee in bankruptcy to any proceeds from the disposal of the set.

Fact Pattern 30-1A (Questions A8-A9 apply) Stacy sells her all-terrain vehicle (ATV)to her brother Terrill for $1,000.Twelve days later,Stacy files a petition in bankruptcy for relief through a liquidation. -Refer to Fact Pattern 30-1A.Terrill dies while riding the ATV.Stacy is Terrill's only heir.With respect to the bankruptcy estate,the inheritance is

Kenyon files a petition for bankruptcy.Kenyon must include with the petition

Bankruptcy law has one goal-to provide relief and protection for creditors who have "given too much credit."

Tippi believes that she needs to obtain a discharge in bank?ruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a pe?tition by

On the entry of an order for relief in a reorganization case,the creditors generally take over the operation of the debtor's business.

Mikhail files a petition in bankruptcy.One of the goals of bankruptcy law with respect to a debtor who has "gotten in over his head" is to