Question 1

A fraudulent conveyance directly or indirectly transfers assets to a third party with the intent to put assets out of the reach of creditors.

Accepted Answer

A) True 
 B)False

Question 2

Barrett,who has several creditors and a small amount in savings,goes bankrupt.Barrett owes XYZ Bank $200,000 for which Barrett's home was used as collateral.XYZ Bank properly perfected its interest in the home.Barrett additionally owes $3,000 in alimony; $50,000 in unsecured credit card bills; and $5,000 in unsecured debt to a friend,Taliesin.After all exemptions are satisfied,$205,000 from the sale of the home and $5,000 in a small bank account remain for distribution to creditors.Which of the following is true regarding priority?

Accepted Answer

A)  All funds are added together and disbursed to the claimants based upon the percentage of each creditor's claim. 
B)  Taliesin has first priority; the credit card companies are then paid; and XYZ Bank is entitled to any remainder. 
C)  XYZ Bank receives $200,000 from the sale of the home; the ex-spouse receives $3,000; and the remainder is divided between the credit card companies and Taliesin. 
D)  Taliesin has first priority; XYZ Bank is then paid; and the credit card companies divide the remainder. 
A)  All funds are added together and disbursed to the claimants based upon the percentage of each creditor's claim. 
B)  Taliesin has first priority; the credit card companies are then paid; and XYZ Bank is entitled to any remainder. 
C)  XYZ Bank receives $200,000 from the sale of the home; the ex-spouse receives $3,000; and the remainder is divided between the credit card companies and Taliesin. 
D)  Taliesin has first priority; XYZ Bank is then paid; and the credit card companies divide the remainder.

Question 3

National banks acting as lenders are subject to state usury laws.

Accepted Answer

A) True 
 B)False

Question 4

A repayment plan under a Chapter 11 bankruptcy must either be accepted unanimously or pass the "best interests of creditors" test.

Accepted Answer

A) True 
 B)False

Question 5

A lien subordination __________ the right of the subordinating party to accept payment from the debtor.

Accepted Answer

A)  acts like debt subordination and gives 
B)  supersedes a prior secured party's claim and 
C)  does not limit 
D)  invalidates 
A)  acts like debt subordination and gives 
B)  supersedes a prior secured party's claim and 
C)  does not limit 
D)  invalidates

Question 6

What is a preference under the bankruptcy code? What time period is reviewed to determine if a preference has occurred? When does a long-term debt payment to a bank qualify under the ordinary course of business exception?

Accepted Answer

Preferences are transfers to (or for the

A fraudulent conveyance directly or indirectly transfers assets to a third party with the intent to put assets out of the reach of creditors.

National banks acting as lenders are subject to state usury laws.

A repayment plan under a Chapter 11 bankruptcy must either be accepted unanimously or pass the "best interests of creditors" test.

A lien subordination __________ the right of the subordinating party to accept payment from the debtor.

What is a preference under the bankruptcy code? What time period is reviewed to determine if a preference has occurred? When does a long-term debt payment to a bank qualify under the ordinary course of business exception?

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Exam 23: Debtor Creditor Relations And Bankruptcy

A fraudulent conveyance directly or indirectly transfers assets to a third party with the intent to put assets out of the reach of creditors.

National banks acting as lenders are subject to state usury laws.

A repayment plan under a Chapter 11 bankruptcy must either be accepted unanimously or pass the "best interests of creditors" test.

A lien subordination __________ the right of the subordinating party to accept payment from the debtor.

What is a preference under the bankruptcy code? What time period is reviewed to determine if a preference has occurred? When does a long-term debt payment to a bank qualify under the ordinary course of business exception?

Law-Value-Creation-And-Risk-Management

Ethics-And-Law

Sources of Law Courts and Dispute Resolution

Constitutional Bases For Business Regulation

Agency

Administrative-Law

Contracts

Sales Licensing and-E Commerce

Torts and Privacy Protection

Product-Liability

Intellectual-Property

The Employment Agreement

Civil Rights and Employment Discrimination

Criminal-Law

Environmental-Law-And-Sustainability

Antitrust

Consumer-Protection

Real Property And Land Use

Forms Of Business Organizations

Directors Officers And Controlling Shareholders

Public And Private Offerings Of Securities

Securities Fraud And Insider Trading

International Law And Transactions

Filters