Question 1

The filing of either a voluntary petition or an unchallenged involuntary petition constitutes a(n) ________.

Accepted Answer

A)  reaffirmation agreement 
B)  discharge 
C)  order for relief 
D)  composition 
A)  reaffirmation agreement 
B)  discharge 
C)  order for relief 
D)  composition

Question 2

A proof of claim is a document required to be filed by a creditor that states the amount of his or her claim against the debtor.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following constitutes the property of a Chapter 13 estate?

Accepted Answer

A)  nonexempt property of the debtor before the case is closed 
B)  exempt property of the debtor before the case is closed 
C)  debtor's income before and after the case is closed 
D)  property that is exempt from Chapter 7 estate 
A)  nonexempt property of the debtor before the case is closed 
B)  exempt property of the debtor before the case is closed 
C)  debtor's income before and after the case is closed 
D)  property that is exempt from Chapter 7 estate

Question 4

An executory contract refers to a contract or lease that has not been fully performed.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of bankruptcy law in the United States?

Accepted Answer

A)  The 1978 bankruptcy law made it easier for debtors to be relieved of much of their debt. 
B)  The 1978 bankruptcy law was deemed to be "creditor friendly." 
C)  The bankruptcy act of 2005 makes it easier for debtors to be relieved of their debts under federal bankruptcy law. 
D)  The 2005 bankruptcy act has been called "debtor friendly." 
A)  The 1978 bankruptcy law made it easier for debtors to be relieved of much of their debt. 
B)  The 1978 bankruptcy law was deemed to be "creditor friendly." 
C)  The bankruptcy act of 2005 makes it easier for debtors to be relieved of their debts under federal bankruptcy law. 
D)  The 2005 bankruptcy act has been called "debtor friendly."

Question 6

What is a homestead exemption?

Accepted Answer

A)  investment in realty that a debtor must forfeit 
B)  equity in a home that a debtor is permitted to retain 
C)  remainder of the debtor's interest in commercial property that is returned to him after fulfilling creditors' claims 
D)  all of the debtor's assets converted to cash 
A)  investment in realty that a debtor must forfeit 
B)  equity in a home that a debtor is permitted to retain 
C)  remainder of the debtor's interest in commercial property that is returned to him after fulfilling creditors' claims 
D)  all of the debtor's assets converted to cash

Question 7

A person filing for bankruptcy under Chapter 11 and left in place to operate the business during the reorganization proceeding is known as the ________.

Accepted Answer

A)  trustee 
B)  debtor-in-possession 
C)  consignor 
D)  regent 
A)  trustee 
B)  debtor-in-possession 
C)  consignor 
D)  regent

Question 8

Which of the following is true of the median income test?

Accepted Answer

A)  If a family has median family income equal to the state's median family income, the debtor does not qualify for a Chapter 7 bankruptcy. 
B)  If a family has median family income below the state's median family income, the debtor is subject to the "means" test. 
C)  If a family has median family income below the state's median family income, the debtor automatically qualifies for a Chapter 7 bankruptcy. 
D)  A debtor's debts are not discharged if the family median income is more than the state's median family income. 
A)  If a family has median family income equal to the state's median family income, the debtor does not qualify for a Chapter 7 bankruptcy. 
B)  If a family has median family income below the state's median family income, the debtor is subject to the "means" test. 
C)  If a family has median family income below the state's median family income, the debtor automatically qualifies for a Chapter 7 bankruptcy. 
D)  A debtor's debts are not discharged if the family median income is more than the state's median family income.

Question 9

Which of the following bankruptcy methods allows the reorganization of the debtor's financial affairs?

Accepted Answer

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

Question 10

Chapter 7 of the Bankruptcy Code of the bankruptcy act of 2005 primarily deals with ________.

Accepted Answer

A)  reorganization 
B)  adjustment of debts of a family farmer or fisherman with regular income 
C)  adjustment of debts of an individual with regular income 
D)  liquidation 
A)  reorganization 
B)  adjustment of debts of a family farmer or fisherman with regular income 
C)  adjustment of debts of an individual with regular income 
D)  liquidation

Question 11

Describe the procedure for filing a bankruptcy petition.

Accepted Answer

1. Voluntary petition-A voluntary petiti

Question 12

Chapter 13 discharges are granted to debtors before their plans of payment begin.

Accepted Answer

A) True 
 B)False

Question 13

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 makes it more difficult for debtors to file for bankruptcy and have their unpaid debts discharged.

Accepted Answer

A) True 
 B)False

Question 14

The property of a Chapter 13 estate consists of nonexempt property acquired after a case is closed.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of Chapter 13 discharge?

Accepted Answer

A)  It is granted before a Chapter 13 plan of payment is enforced. 
B)  It is not granted if the debtor has received Chapter 7 discharge in the last four years. 
C)  It is granted only for the secured unpaid debts of a debtor. 
D)  All unpaid taxes are discharged under Chapter 13 discharge. 
A)  It is granted before a Chapter 13 plan of payment is enforced. 
B)  It is not granted if the debtor has received Chapter 7 discharge in the last four years. 
C)  It is granted only for the secured unpaid debts of a debtor. 
D)  All unpaid taxes are discharged under Chapter 13 discharge.

Question 16

The ________ is a bankruptcy rule that applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family.

Accepted Answer

A)  means test 
B)  median income test 
C)  Chapter 13 discharge 
D)  Chapter 13 plan of payment 
A)  means test 
B)  median income test 
C)  Chapter 13 discharge 
D)  Chapter 13 plan of payment

Question 17

Which of the following is true of the meeting of the creditors?

Accepted Answer

A)  A meeting of the creditors is called before the court grants an order for relief. 
B)  The bankruptcy judge cannot attend the meeting of the creditors. 
C)  In the first meeting of the creditors, a debtor is questioned by a jury constituted for the purpose. 
D)  Questions regarding the debtor's possible concealment of assets are not permitted during the meeting of the creditors. 
A)  A meeting of the creditors is called before the court grants an order for relief. 
B)  The bankruptcy judge cannot attend the meeting of the creditors. 
C)  In the first meeting of the creditors, a debtor is questioned by a jury constituted for the purpose. 
D)  Questions regarding the debtor's possible concealment of assets are not permitted during the meeting of the creditors.

Question 18

Unscheduled claims are not dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of the bankruptcy procedure?

Accepted Answer

A)  A driven petition is a petition filed by a debtor that states that he or she has debts. 
B)  A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C)  A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D)  A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding. 
A)  A driven petition is a petition filed by a debtor that states that he or she has debts. 
B)  A debtor must receive prepetition credit counseling within 180 days prior to filing his or her petition for bankruptcy. 
C)  A voluntary petition is filed by creditors of a debtor, alleging that the debtor is not paying his or her debts as they become due. 
D)  A complaint is a document filed with a bankruptcy court that starts a bankruptcy proceeding.

Question 20

The fees of any attorney or filing service used for filing bankruptcy must be paid by the debtor.

Accepted Answer

A) True 
 B)False

Exam 28: Bankruptcy and Reorganization

The filing of either a voluntary petition or an unchallenged involuntary petition constitutes a(n) ________.

A proof of claim is a document required to be filed by a creditor that states the amount of his or her claim against the debtor.

Which of the following constitutes the property of a Chapter 13 estate?

An executory contract refers to a contract or lease that has not been fully performed.

Which of the following is true of bankruptcy law in the United States?

What is a homestead exemption?

A person filing for bankruptcy under Chapter 11 and left in place to operate the business during the reorganization proceeding is known as the ________.

Which of the following is true of the median income test?

Which of the following bankruptcy methods allows the reorganization of the debtor's financial affairs?

Chapter 7 of the Bankruptcy Code of the bankruptcy act of 2005 primarily deals with ________.

Describe the procedure for filing a bankruptcy petition.

Chapter 13 discharges are granted to debtors before their plans of payment begin.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 makes it more difficult for debtors to file for bankruptcy and have their unpaid debts discharged.

The property of a Chapter 13 estate consists of nonexempt property acquired after a case is closed.

Which of the following is true of Chapter 13 discharge?

The ________ is a bankruptcy rule that applies to a debtor who has a median family income that exceeds the state's median family income for families the same size as the debtor's family.

Which of the following is true of the meeting of the creditors?

Unscheduled claims are not dischargeable in bankruptcy.

Which of the following is true of the bankruptcy procedure?

The fees of any attorney or filing service used for filing bankruptcy must be paid by the debtor.

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