Question 1

Which of the following are permitted to file under Chapter 11 reorganization?

Accepted Answer

A)   Stockbrokers
B)   Commodities brokers
C)   Banks
D)   Savings and loan companies
E)   Corporate debtorsF) B) and D)
G) A) and E)

Question 2

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ____.

Accepted Answer

A)   Corpus
B)   Remainder
C)   Residual estate
D)   Bankruptcy estate
E)   Relinquished asset poolF) C) and E)
G) All of the above

Question 3

In a Chapter 7 proceeding,a bankruptcy trustee may at times take over a debtor's business.

Accepted Answer

A) True 
 B)False

Question 4

One of the requirements before a collective bargaining agreement can be rejected under Chapter 11 is that the debtor has first presented to the employee's representative the proposed changes to the collective bargaining agreement,and the employees reject the changes without good cause.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is false regarding nondischargeable debts under a Chapter 7 bankruptcy filing?

Accepted Answer

A)   Nondischargeable debts include claims of willful or malicious conduct by the debtor that caused injury to another person or property.
B)   Nondischargeable debts include specific student loans, unless payment of the loans imposes undue hardship on the debtor.
C)   Nondischargeable debts include debts not discharged in previous bankruptcies.
D)   Nondischargeable debts include judgments against a debtor for claims resulting from the debtor's drinking and driving.
E)   Nondischargeable debts include claims for back taxes or government fines within four years of filing for bankruptcy.F) D) and E)
G) A) and C)

Question 6

Which of the following is an agreement by which the debtor agrees to pay a debt even though it could be discharged?

Accepted Answer

A)   A settlement
B)   A reaffirmation agreement
C)   An acknowledgement agreement
D)   An accord and compromise
E)   An affirmanceF) None of the above
G) A) and C)

Question 7

Which of the following did the court determine in In re Holsinger,the case in the text in which the debtor requested a waiver of debt-counseling under the Bankruptcy Abuse Prevention and Consumer Protection Act?

Accepted Answer

A)   That imminent foreclosure of real property and resultant eviction qualified as exigent circumstances entitling the debtor to a waiver of the debt-counseling requirement.
B)   That credit-counseling may be waived when the debtor establishes that work obligations prevent attendance at any counseling session within 20 miles.
C)   That credit-counseling may be waived when the debtor establishes that work obligations prevent attendance at any counseling session within 50 miles.
D)   That credit-counseling is in effect optional and may be waived when the debtor establishes that attendance would create a hardship, for example, in regard to family matters.
E)   That even imminent foreclosure of real property does not entitle a debtor to waiver when other requirements in relation to debt counseling remain unsatisfied.F) All of the above
G) None of the above

Question 8

Which of the following titles of the United States Code contains the Bankruptcy Code?

Accepted Answer

A)   Title 9
B)   Title 11
C)   Title 7
D)   Title 15
E)   Title 34F) A) and E)
G) A) and C)

Question 9

A debtor must be insolvent to file a voluntary petition for bankruptcy under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 10

Before a debtor files for one specific type of relief,the clerk of courts must give the debtor written notice of the other types of relief available.

Accepted Answer

A) True 
 B)False

Question 11

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Accepted Answer

A)   The payment was not preferential because it was for a consumer good and was not made within 30 days of the filing of the bankruptcy petition.
B)   The payment is presumed preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
C)   The payment is presumed preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish Mindy's insolvency at the time and that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
D)   Because it was for a consumer good, the payment was not preferential unless the bankruptcy trustee can prove intent to defraud.
E)   The payment was preferential because it was made within 90 days of the filing of the bankruptcy petition.F) A) and D)
G) C) and D)

Question 13

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Accepted Answer

A)   The stay affects claims of secured creditors in the same way in which it affects claims of unsecured creditors.
B)   Secured creditors with claims of over $5,000 are not affected by the stay.
C)   Secured creditors with claims of over $15,000 are not affected by the stay.
D)   Secured creditors with claims of over $20,000 are not affected by the stay.
E)   The court may exclude secured creditors from the stay if they petition the court to show that they do not have adequate protection under the stay.F) A) and E)
G) B) and C)

Question 14

Set forth the set of procedures that must be taken in every bankruptcy case.

Accepted Answer

The set of procedures that must be taken...

Question 15

Which of the following is false regarding actions that may be taken while an automatic stay is in effect in a Chapter 7 proceeding?

Accepted Answer

A)   Creditors cannot attempt to repossess property during bankruptcy proceedings.
B)   A creditor who received a judgment against a debtor prior to the bankruptcy filing may not act to enforce the judgment.
C)   Legal actions to collect child support payments are subject to the stay.
D)   The court may exclude secured creditors from the stay if they petition the court to show that they do not have adequate protection under the stay.
E)   If the debtor was a debtor in a bankruptcy case that was dismissed within a year of the current bankruptcy case filing, the stay automatically terminates 30 days after the current filing.F) A) and D)
G) A) and B)

Question 16

Which of the following behavior may cause a court to not discharge a debt in a Chapter 7 bankruptcy proceeding?

Accepted Answer

The following behavior may cause the cou...

Question 17

Which of the following chapters is used as a reorganization of the debtor's financial affairs under supervision of the bankruptcy court?

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 14
E)   Chapter 15F) C) and D)
G) D) and E)

Question 18

Which of the following is false regarding bankruptcy cases?

Accepted Answer

A)   The Bankruptcy Rules set forth procedures for bankruptcy cases.
B)   Bankruptcy cases are referred to bankruptcy judges, under the authority of the district courts.
C)   An appeal of a bankruptcy ruling goes to the district court judge.
D)   A jury is not allowed in a bankruptcy proceeding.
E)   Bankruptcy cases are filed in federal district courts.F) D) and E)
G) C) and D)

Question 19

Who calls the creditors' meeting in a Chapter 7 proceeding?

Accepted Answer

A)   The trustee
B)   The interim trustee
C)   The bankruptcy judge
D)   The district court judge
E)   At least three of the creditorsF) C) and D)
G) A) and D)

Question 20

Assuming that Mona does not object to the bankruptcy proceeding,what is the next step that should occur?

Accepted Answer

A)   The court should appoint a temporary trustee.
B)   The court should appoint a trustee.
C)   The court should enter an order of relief.
D)   The court should hold a creditor's meeting.
E)   The court should determine if any claims have priority.F) B) and D)
G) A) and E)

Exam 32: Bankruptcy and Reorganization

Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Correct AnswerverifiedShow Answer

Which of the following did the court determine in In re Holsinger,the case in the text in which the debtor requested a waiver of debt-counseling under the Bankruptcy Abuse Prevention and Consumer Protection Act?

Correct AnswerverifiedShow Answer

Which of the following is false regarding nondischargeable debts under a Chapter 7 bankruptcy filing?

Correct AnswerverifiedShow Answer

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ____.

Correct AnswerverifiedShow Answer

Which of the following titles of the United States Code contains the Bankruptcy Code?

Correct AnswerverifiedShow Answer

Which of the following is an agreement by which the debtor agrees to pay a debt even though it could be discharged?

Correct AnswerverifiedShow Answer

One of the requirements before a collective bargaining agreement can be rejected under Chapter 11 is that the debtor has first presented to the employee's representative the proposed changes to the collective bargaining agreement,and the employees reject the changes without good cause.

Correct AnswerverifiedShow Answer

A debtor must be insolvent to file a voluntary petition for bankruptcy under Chapter 7.

Correct AnswerverifiedShow Answer

Which of the following are permitted to file under Chapter 11 reorganization?

Correct AnswerverifiedShow Answer

Assuming that Mona does not object to the bankruptcy proceeding,what is the next step that should occur?

Correct AnswerverifiedShow Answer

In a Chapter 7 proceeding,a bankruptcy trustee may at times take over a debtor's business.

Correct AnswerverifiedShow Answer

Who calls the creditors' meeting in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

Which of the following is false regarding bankruptcy cases?

Correct AnswerverifiedShow Answer

Before a debtor files for one specific type of relief,the clerk of courts must give the debtor written notice of the other types of relief available.

Correct AnswerverifiedShow Answer

Which of the following behavior may cause a court to not discharge a debt in a Chapter 7 bankruptcy proceeding?

Correct AnswerverifiedThe following behavior may cause the cou...View AnswerShow Answer

Which of the following chapters is used as a reorganization of the debtor's financial affairs under supervision of the bankruptcy court?

Correct AnswerverifiedShow Answer

Set forth the set of procedures that must be taken in every bankruptcy case.

Correct AnswerverifiedThe set of procedures that must be taken...View AnswerShow Answer

Which of the following is false regarding actions that may be taken while an automatic stay is in effect in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

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The following behavior may cause the cou...
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The set of procedures that must be taken...
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