Question 1

Which of the following best defines a proof of claim?

Accepted Answer

A)  a statement by the debtor that states that he or she has debts 
B)  a document required to be filed by a debtor showing property that is exempt from constituting the bankruptcy estate 
C)  a document required to be filed by a creditor that states the amount of his or her claim against the debtor 
D)  a statement by creditors alleging that the debtor is not paying his or her debts as they become due 
A)  a statement by the debtor that states that he or she has debts 
B)  a document required to be filed by a debtor showing property that is exempt from constituting the bankruptcy estate 
C)  a document required to be filed by a creditor that states the amount of his or her claim against the debtor 
D)  a statement by creditors alleging that the debtor is not paying his or her debts as they become due

Question 2

In a meeting of the creditors, the bankruptcy judge questions the debtor.

Accepted Answer

A) True 
 B)False

Question 3

A composition provides a longer period of time for a debtor to pay his or her debts.

Accepted Answer

A) True 
 B)False

Question 4

What is a Chapter 7 discharge?

Accepted Answer

A)  The termination of the legal duty of an individual debtor to pay both secured and unsecured debts before he or she is granted a court trial. 
B)  The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C)  The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D)  An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments. 
A)  The termination of the legal duty of an individual debtor to pay both secured and unsecured debts before he or she is granted a court trial. 
B)  The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. 
C)  The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding. 
D)  An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments.

Question 5

Which of the following chapters of the bankruptcy code deals with adjustment of debts of a family farmer or fishermen with regular income?

Accepted Answer

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

Question 6

A creditor's action of perfecting liens against a debtor's property cannot be stayed.

Accepted Answer

A) True 
 B)False

Question 7

Gifts that a debtor is entitled to receive within 180 days after a bankruptcy petition is filed are part of the debtor's bankruptcy estate.

Accepted Answer

A) True 
 B)False

Question 8

Unpaid debts that the debtor incurred prior to the date of the order for relief are discharged under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 9

A reaffirmation agreement is an agreement whereby a creditor agrees to discharge the debtor of certain debts that may be included in the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has been criticized as being too "creditor-friendly."

Accepted Answer

A) True 
 B)False

Question 11

Under the 2005 bankruptcy act, if non-exempt personal property of an individual debtor secures a claim or is subject to an unexpired lease, the debtor ________.

Accepted Answer

A)  must surrender the property 
B)  can appeal for exemption of the property 
C)  must terminate the lease with immediate effect 
D)  cannot redeem the property 
A)  must surrender the property 
B)  can appeal for exemption of the property 
C)  must terminate the lease with immediate effect 
D)  cannot redeem the property

Question 12

A U.S. Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

Accepted Answer

A) True 
 B)False

Question 13

A bankruptcy trustee is a ________.

Accepted Answer

A)  legal representative of a debtor's estate 
B)  claimant to the debtor's estate on behalf of a creditor 
C)  federal government official responsible for supervising a bankruptcy case 
D)  bankruptcy judge, appointed by a U.S. Bankruptcy Court 
A)  legal representative of a debtor's estate 
B)  claimant to the debtor's estate on behalf of a creditor 
C)  federal government official responsible for supervising a bankruptcy case 
D)  bankruptcy judge, appointed by a U.S. Bankruptcy Court

Question 14

The acceptance method is a method whereby a bankruptcy court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

Accepted Answer

A) True 
 B)False

Question 15

How does a court order to discharge debts benefit the debtor? Under what circumstances do courts grant a discharge?

Accepted Answer

In Chapter 7 (liquidation), Chapter 11 (

Question 16

Liquidation is a form of bankruptcy in which the debtor's exempt property is auctioned.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain what is included in a bankruptcy estate.

Accepted Answer

The bankruptcy estate includes all the d

Question 18

An order for relief occurs upon the filing of either a voluntary petition or an unchallenged involuntary petition.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of Chapter 11 of the Bankruptcy Code?

Accepted Answer

A)  Chapter 11 is a rehabilitation form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts. 
B)  The filing of a Chapter 11 petition immediately enables creditors to recover the debtor's property. 
C)  Chapter 11 helps the debtor reorganize with a new capital structure so that the debtor emerges from bankruptcy as a viable concern. 
D)  Chapter 11 does not permit a debtor to reject executory contracts or unexpired leases. 
A)  Chapter 11 is a rehabilitation form of bankruptcy that permits bankruptcy courts to supervise the debtor's plan for the payment of unpaid debts. 
B)  The filing of a Chapter 11 petition immediately enables creditors to recover the debtor's property. 
C)  Chapter 11 helps the debtor reorganize with a new capital structure so that the debtor emerges from bankruptcy as a viable concern. 
D)  Chapter 11 does not permit a debtor to reject executory contracts or unexpired leases.

Question 20

All creditors must file a proof of interest before a bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Exam 28: Bankruptcy and Reorganization

Which of the following best defines a proof of claim?

In a meeting of the creditors, the bankruptcy judge questions the debtor.

A composition provides a longer period of time for a debtor to pay his or her debts.

What is a Chapter 7 discharge?

Which of the following chapters of the bankruptcy code deals with adjustment of debts of a family farmer or fishermen with regular income?

A creditor's action of perfecting liens against a debtor's property cannot be stayed.

Gifts that a debtor is entitled to receive within 180 days after a bankruptcy petition is filed are part of the debtor's bankruptcy estate.

Unpaid debts that the debtor incurred prior to the date of the order for relief are discharged under Chapter 7.

A reaffirmation agreement is an agreement whereby a creditor agrees to discharge the debtor of certain debts that may be included in the bankruptcy.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has been criticized as being too "creditor-friendly."

Under the 2005 bankruptcy act, if non-exempt personal property of an individual debtor secures a claim or is subject to an unexpired lease, the debtor ________.

A U.S. Trustee is a federal government official who has responsibility for handling and supervising many of the administrative tasks associated with a bankruptcy case.

A bankruptcy trustee is a ________.

The acceptance method is a method whereby a bankruptcy court confirms a plan of reorganization if the creditors accept the plan and if other requirements are met.

How does a court order to discharge debts benefit the debtor? Under what circumstances do courts grant a discharge?

Liquidation is a form of bankruptcy in which the debtor's exempt property is auctioned.

Briefly explain what is included in a bankruptcy estate.

An order for relief occurs upon the filing of either a voluntary petition or an unchallenged involuntary petition.

Which of the following is true of Chapter 11 of the Bankruptcy Code?

All creditors must file a proof of interest before a bankruptcy proceeding.

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