Question 1

Under Chapter 7,the primary effect of a discharge is to

Accepted Answer

A)   extend the time for the debtor's payment of overdue debts.
B)   allow a creditor to collect a previous judgment on a discharged debt.
C)   force a creditor to obtain a new judgment on a discharged debt.
D)   void a judgment on a discharged debt and prohibit an action to collect it.E) A) and B)
F) None of the above

Question 2

In a Chapter 7 proceeding,the primary effect of a discharge is to void any judgment on a discharged debt and to prohibit any action to collect it.

Accepted Answer

A) True 
 B)False

Question 3

The borrower need not obtain the lender's permission for a short sale because the sale is for less than the balance owed on a mortgage loan.

Accepted Answer

A) True 
 B)False

Question 4

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Accepted Answer

A) True 
 B)False

Question 5

In a Chapter 11 proceeding,a debtor corporation and its creditors agree on a plan under which the corporation pays a portion of its debt.

Accepted Answer

A) True 
 B)False

Question 6

Under Chapter 13,a repayment plan must provide for

Accepted Answer

A)   the turnover of the debtor's future income to the creditors.
B)   full payment of all claims,without exception.
C)   the same treatment of each claim within a particular class of claim.
D)   all of the choices.E) B) and C)
F) A) and B)

Question 7

In a Chapter 11 proceeding,the role of a debtor in possession is similar to that of a trustee in a Chapter 7 proceeding.

Accepted Answer

A) True 
 B)False

Question 8

In a Chapter 13 proceeding,the debtor retains possession of his or her assets.

Accepted Answer

A) True 
 B)False

Question 9

Brewery Company's debt to Credit Service is past due.Credit obtains a judgment against Brewery,but the firm refuses to pay.Credit asks the court to order the seizure of Brewery's property.This is a request for

Accepted Answer

A)   an artisan's lien.
B)   a mechanic's lien.
C)   a writ of attachment.
D)   a writ of execution.E) B) and C)
F) A) and D)

Question 10

To purchase a house,Ethel obtains a mortgage loan from Fidelity Bank.Later,Ethel is unable to make payments on the loan.Meanwhile,the market value of the house has declined.Fidelity agrees to a sale of the property for less than the amount due on the loan.This is

Accepted Answer

A)   forbearance.
B)   a short sale.
C)   a workout agreement.
D)   none of the choices.E) A) and B)
F) None of the above

Question 11

Under Chapter 13,after the completion of all payments under the plan,the court will grant a discharge of

Accepted Answer

A)   only the debts provided for by the plan.
B)   only the obligations not provided for by the plan.
C)   all claims,whether or not provided for by the plan.
D)   all obligations that remain unsatisfied.E) None of the above
F) All of the above

Question 12

Under Chapter 7,creditors are paid in a certain order of priority.The highest-priority class comprises claims for

Accepted Answer

A)   debts related to motor vehicles,household goods,and trade tools.
B)   domestic support.
C)   the debtor's equity in his or her residence.
D)   student loans.E) A) and B)
F) C) and D)

Exam 13: Creditor-Debtor Relations and Bankruptcy

The borrower need not obtain the lender's permission for a short sale because the sale is for less than the balance owed on a mortgage loan.

Correct Answer
verified

In a Chapter 7 proceeding,the primary effect of a discharge is to void any judgment on a discharged debt and to prohibit any action to collect it.

Correct Answer
verified

To purchase a house,Ethel obtains a mortgage loan from Fidelity Bank.Later,Ethel is unable to make payments on the loan.Meanwhile,the market value of the house has declined.Fidelity agrees to a sale of the property for less than the amount due on the loan.This is

Correct Answer
verified

Under Chapter 7,the primary effect of a discharge is to

Correct Answer
verified

In a Chapter 11 proceeding,a debtor corporation and its creditors agree on a plan under which the corporation pays a portion of its debt.

Correct Answer
verified

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Correct Answer
verified

Under Chapter 13,after the completion of all payments under the plan,the court will grant a discharge of

Correct Answer
verified

Under Chapter 13,a repayment plan must provide for

Correct Answer
verified

Under Chapter 7,creditors are paid in a certain order of priority.The highest-priority class comprises claims for

Correct Answer
verified

In a Chapter 11 proceeding,the role of a debtor in possession is similar to that of a trustee in a Chapter 7 proceeding.

Correct Answer
verified

In a Chapter 13 proceeding,the debtor retains possession of his or her assets.

Correct Answer
verified

Brewery Company's debt to Credit Service is past due.Credit obtains a judgment against Brewery,but the firm refuses to pay.Credit asks the court to order the seizure of Brewery's property.This is a request for

Correct Answer
verified

Exam 13: Creditor-Debtor Relations and Bankruptcy

The borrower need not obtain the lender's permission for a short sale because the sale is for less than the balance owed on a mortgage loan.

Correct AnswerverifiedShow Answer

In a Chapter 7 proceeding,the primary effect of a discharge is to void any judgment on a discharged debt and to prohibit any action to collect it.

Correct AnswerverifiedShow Answer

To purchase a house,Ethel obtains a mortgage loan from Fidelity Bank.Later,Ethel is unable to make payments on the loan.Meanwhile,the market value of the house has declined.Fidelity agrees to a sale of the property for less than the amount due on the loan.This is

Correct AnswerverifiedShow Answer

Under Chapter 7,the primary effect of a discharge is to

Correct AnswerverifiedShow Answer

In a Chapter 11 proceeding,a debtor corporation and its creditors agree on a plan under which the corporation pays a portion of its debt.

Correct AnswerverifiedShow Answer

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Correct AnswerverifiedShow Answer

Under Chapter 13,after the completion of all payments under the plan,the court will grant a discharge of

Correct AnswerverifiedShow Answer

Under Chapter 13,a repayment plan must provide for

Correct AnswerverifiedShow Answer

Under Chapter 7,creditors are paid in a certain order of priority.The highest-priority class comprises claims for

Correct AnswerverifiedShow Answer

In a Chapter 11 proceeding,the role of a debtor in possession is similar to that of a trustee in a Chapter 7 proceeding.

Correct AnswerverifiedShow Answer

In a Chapter 13 proceeding,the debtor retains possession of his or her assets.

Correct AnswerverifiedShow Answer

Brewery Company's debt to Credit Service is past due.Credit obtains a judgment against Brewery,but the firm refuses to pay.Credit asks the court to order the seizure of Brewery's property.This is a request for

Correct AnswerverifiedShow Answer

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