Question 1

A voluntary petition in bankruptcy may be filed by an individual, a partnership, or a corporation.

Accepted Answer

A) True 
 B)False

Question 2

If the debtor has twelve (12) or more creditors, an involuntary petition to declare him bankrupt must be signed by at least five (5) creditors.

Accepted Answer

A) True 
 B)False

Question 3

Debts created by larceny or embezzlement by the debtor while acting in a fiduciary capacity are _____.

Accepted Answer

A)  dischargeable 
B)  secured 
C)  nondischargeable 
D)  unsecured 
A)  dischargeable 
B)  secured 
C)  nondischargeable 
D)  unsecured

Question 4

If a creditor owns a debt that is provable and nondischargeable, he or she _____.

Accepted Answer

A)  may participate in the distribution of the debtor's estate 
B)  can recover only the money provided by the bankrupt's discharge 
C)  must not enter into any voluntary agreement with the debtor for discharge of the debt 
D)  needs court approval for reaffirmation of loans 
A)  may participate in the distribution of the debtor's estate 
B)  can recover only the money provided by the bankrupt's discharge 
C)  must not enter into any voluntary agreement with the debtor for discharge of the debt 
D)  needs court approval for reaffirmation of loans

Question 5

Which of the following is true about a trustee's duties?

Accepted Answer

A)  He represents the debtor in bankruptcy proceedings. 
B)  He examines the claims filed by various creditors. 
C)  He cannot have the debtor's property appraised. 
D)  He cannot sell the debtor's nonexempt property. 
A)  He represents the debtor in bankruptcy proceedings. 
B)  He examines the claims filed by various creditors. 
C)  He cannot have the debtor's property appraised. 
D)  He cannot sell the debtor's nonexempt property.

Question 6

Which of the following statements is true of the exemptions available to bankrupt debtors?

Accepted Answer

A)  They can elect to use the set of exemptions provided by either the state or federal bankruptcy law. 
B)  They can elect to keep some items exempted under the state law and other items under the federal law. 
C)  The set of exemptions is picked by the creditor's committee or the trustee. 
D)  The debtor can pick the exemptions of the place where the debtor was domiciled for 100 days before filing of the petition. 
A)  They can elect to use the set of exemptions provided by either the state or federal bankruptcy law. 
B)  They can elect to keep some items exempted under the state law and other items under the federal law. 
C)  The set of exemptions is picked by the creditor's committee or the trustee. 
D)  The debtor can pick the exemptions of the place where the debtor was domiciled for 100 days before filing of the petition.

Question 7

Which of the following is a valid objection to a discharge in bankruptcy?

Accepted Answer

A)  The debtor has more than 12 creditors and only 7 have filed for involuntary bankruptcy. 
B)  The debtor wants an opportunity to reorganize his or her business. 
C)  The debtor was unaware of embezzlement by his or her financial advisors. 
D)  The debtor is not able to satisfactorily explain the loss in assets. 
A)  The debtor has more than 12 creditors and only 7 have filed for involuntary bankruptcy. 
B)  The debtor wants an opportunity to reorganize his or her business. 
C)  The debtor was unaware of embezzlement by his or her financial advisors. 
D)  The debtor is not able to satisfactorily explain the loss in assets.

Question 8

An individual may not be granted a discharge if the individual _____.

Accepted Answer

A)  has obtained one within the previous eight years 
B)  submits to the questioning of the creditors 
C)  works for a corporation 
D)  has obtained a loan from a secured creditor 
A)  has obtained one within the previous eight years 
B)  submits to the questioning of the creditors 
C)  works for a corporation 
D)  has obtained a loan from a secured creditor

Question 9

Debts that result from liabilities for obtaining money by false pretenses or false representations are generally dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

Voluntary petitions in bankruptcy may be filed by a(n) _____.

Accepted Answer

A)  individual 
B)  insurance company 
C)  municipal corporation 
D)  bank 
A)  individual 
B)  insurance company 
C)  municipal corporation 
D)  bank

Exam 44: Bankruptcy

A voluntary petition in bankruptcy may be filed by an individual, a partnership, or a corporation.

If the debtor has twelve (12) or more creditors, an involuntary petition to declare him bankrupt must be signed by at least five (5) creditors.

Debts created by larceny or embezzlement by the debtor while acting in a fiduciary capacity are _____.

If a creditor owns a debt that is provable and nondischargeable, he or she _____.

Which of the following is true about a trustee's duties?

Which of the following statements is true of the exemptions available to bankrupt debtors?

Which of the following is a valid objection to a discharge in bankruptcy?

An individual may not be granted a discharge if the individual _____.

Debts that result from liabilities for obtaining money by false pretenses or false representations are generally dischargeable in bankruptcy.

Voluntary petitions in bankruptcy may be filed by a(n) _____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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