Exam 30: B: Bankruptcy Law

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

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.

In a repayment plan case,the plan must provide for payment of all obligations in full.

Resources Exploitation,Inc.(REI),files a petition in bankruptcy for relief through a reorganization and assumes the role of a debtor in possession.In this role,REI is simi?lar to

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

One of the primary effects of a discharge is to relieve the liability of a co-debtor.

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

If a debtor's income is below the median income,there is a presumption of bankruptcy abuse.

Discharge of a debt is never denied because of the nature of a claim.

Reconstruction Building Services receives a discharge in bankruptcy,even though some creditors hold judgments on overdue debts against it and others filed ac?tions to collect on overdue debts before the bankruptcy.Reconstruction's dis?charge will

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

Bankruptcy proceedings are held in state courts.

A bankruptcy estate consists of all the debtor's interests in property currently held,wherever located.

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

In most states,debtors may use only federal exemptions to exempt certain property from the bankruptcy.

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

Mia's voluntary petition for bankruptcy is found to be proper.The order for relief is effective as soon as

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

Ronaldo agrees to pay Simplex Cash Store a debt that is otherwise dis?chargeable in bankruptcy.This is

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