Question 1

A bankruptcy trustee is accountable for

Accepted Answer

A)  administering the debtor's estate.
B)  exempting certain property from the bankruptcy.
C)  operating a debtor's business to obtain maximum profit for the creditors.
D)  commencing actions against the debtor to recover creditors' claims.E) B) and D)
F) B) and C)

Question 2

All bankruptcy proceedings are conducted in federal bankruptcy courts.

Accepted Answer

A) True 
 B)False

Question 3

Under Chapter 13, a plan may provide for the payment of an amount less than 100 percent of the debtor's total obligations.

Accepted Answer

A) True 
 B)False

Question 4

A debtor cannot defend against an involuntary bankruptcy petition because that would be contrary to the definition of involuntary .

Accepted Answer

A) True 
 B)False

Question 5

Under Chapter 7, to be entitled to receive a portion of a debtor's estate, each creditor must file a proof of claim with the bankruptcy court within ninety days of

Accepted Answer

A)  the order for relief.
B)  the petition.
C)  the automatic stay.
D)  the creditors' meeting.E) B) and C)
F) C) and D)

Question 6

Any debtor who is eligible for bankruptcy relief under Chapter 7 is eligible under Chapter 11.

Accepted Answer

A) True 
 B)False

Question 7

In a Chapter 11 proceeding, for an individual debtor , the court may order discharge at any time after the plan is confirmed.

Accepted Answer

A) True 
 B)False

Question 8

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Accepted Answer

A) True 
 B)False

Question 9

A voluntary petition in bankruptcy must include

Accepted Answer

A)  proof of each creditor's claim.
B)  a list of the debtor's creditors and the amount of the debt owed to each.
C)  all of the choices.
D)  a statement indicating that the debtor understands basic economics.E) A) and D)
F) None of the above

Question 10

Only the debtor may file a plan under Chapter 13.

Accepted Answer

A) True 
 B)False

Question 11

Under the Bankruptcy Code, the means test is used to

Accepted Answer

A)  keep higher-income people from abusing the bankruptcy process.
B)  force more people to file for Chapter 7 bankruptcy.
C)  determine the validity of a statement or claim by any party in interest.
D)  prioritize the claims of the creditors in an involuntary proceeding.E) A) and D)
F) A) and C)

Question 12

Eligible for relief on a petition in bankruptcy under Chapter 11 is

Accepted Answer

A)  any debtor who is eligible under Chapter 7, and railroads.
B)  an individual, not a partnership or a corporation, with regular income and debts of less than a certain amount.
C)  any "person" except railroads and certain financial institutions.
D)  any party who is not eligible under a different chapter of the Code.E) B) and D)
F) C) and D)

Question 13

In a Chapter 7 proceeding if the value of the debtor's estate does not provide sufficient cash to pay all the creditors, it is given back to the debtor.

Accepted Answer

A) True 
 B)False

Question 14

One of the Bankruptcy Code's main goals is to ensure preferential treatment of certain creditors who are competing for a debtor's assets.

Accepted Answer

A) True 
 B)False

Question 15

If all classes of creditors accept the debtor's Chapter 11 plan, the court cannot refuse to confirm it.

Accepted Answer

A) True 
 B)False

Question 16

In a Chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduces it to cash, preserving the interests of the debtor and creditors.

Accepted Answer

A) True 
 B)False

Question 17

eGear is a retail seller of phones, TVs, and other consumer electronic equipment. eGear sells Fiona a $2,400 television set on a retail installment security agreement on which she pays $100 down and agrees to pay the balance in equal installments. eGear retains a security interest in the set, and perfects that interest by filing a financing statement. Two months later, Fiona is in default on the payments to eGear and is involuntarily petitioned into bankruptcy by other creditors. Discuss eGear's right to repossess the TV set or to be paid on the debt.

Accepted Answer

eGear will not be able to repossess the ...

Question 18

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Accepted Answer

A)  an automatic stay.
B)  the discharge of the debtor's obligations.
C)  the dismissal of the petition.
D)  the distribution of the debtor's assets to his or her creditors.E) A) and B)
F) A) and C)

Question 19

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 20

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Accepted Answer

A)  a liquidation.
B)  a reorganization.
C)  a repayment plan.
D)  an adjustment plan.E) None of the above
F) A) and C)

Exam 31: Bankruptcy Law

In a Chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduces it to cash, preserving the interests of the debtor and creditors.

Correct Answer
verified

If all classes of creditors accept the debtor's Chapter 11 plan, the court cannot refuse to confirm it.

Correct Answer
verified

Under the Bankruptcy Code, the means test is used to

Correct Answer
verified

All bankruptcy proceedings are conducted in federal bankruptcy courts.

Correct Answer
verified

Any debtor who is eligible for bankruptcy relief under Chapter 7 is eligible under Chapter 11.

Correct Answer
verified

In a Chapter 11 proceeding, for an individual debtor , the court may order discharge at any time after the plan is confirmed.

Correct Answer
verified

Under Chapter 7, to be entitled to receive a portion of a debtor's estate, each creditor must file a proof of claim with the bankruptcy court within ninety days of

Correct Answer
verified

Under Chapter 13, a plan may provide for the payment of an amount less than 100 percent of the debtor's total obligations.

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

A bankruptcy trustee is accountable for

Correct Answer
verified

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Correct Answer
verified

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Correct Answer
verified

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Correct Answer
verified

One of the Bankruptcy Code's main goals is to ensure preferential treatment of certain creditors who are competing for a debtor's assets.

Correct Answer
verified

A debtor cannot defend against an involuntary bankruptcy petition because that would be contrary to the definition of involuntary .

Correct Answer
verified

In a Chapter 7 proceeding if the value of the debtor's estate does not provide sufficient cash to pay all the creditors, it is given back to the debtor.

Correct Answer
verified

Eligible for relief on a petition in bankruptcy under Chapter 11 is

Correct Answer
verified

A voluntary petition in bankruptcy must include

Correct Answer
verified

Only the debtor may file a plan under Chapter 13.

Correct Answer
verified

Correct Answer
verified
eGear will not be able to repossess the ...
View Answer

Exam 31: Bankruptcy Law

In a Chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduces it to cash, preserving the interests of the debtor and creditors.

Correct AnswerverifiedShow Answer

If all classes of creditors accept the debtor's Chapter 11 plan, the court cannot refuse to confirm it.

Correct AnswerverifiedShow Answer

Under the Bankruptcy Code, the means test is used to

Correct AnswerverifiedShow Answer

All bankruptcy proceedings are conducted in federal bankruptcy courts.

Correct AnswerverifiedShow Answer

Any debtor who is eligible for bankruptcy relief under Chapter 7 is eligible under Chapter 11.

Correct AnswerverifiedShow Answer

In a Chapter 11 proceeding, for an individual debtor , the court may order discharge at any time after the plan is confirmed.

Correct AnswerverifiedShow Answer

Under Chapter 7, to be entitled to receive a portion of a debtor's estate, each creditor must file a proof of claim with the bankruptcy court within ninety days of

Correct AnswerverifiedShow Answer

Under Chapter 13, a plan may provide for the payment of an amount less than 100 percent of the debtor's total obligations.

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

A bankruptcy trustee is accountable for

Correct AnswerverifiedShow Answer

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Correct AnswerverifiedShow Answer

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Correct AnswerverifiedShow Answer

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Correct AnswerverifiedShow Answer

One of the Bankruptcy Code's main goals is to ensure preferential treatment of certain creditors who are competing for a debtor's assets.

Correct AnswerverifiedShow Answer

A debtor cannot defend against an involuntary bankruptcy petition because that would be contrary to the definition of involuntary .

Correct AnswerverifiedShow Answer

In a Chapter 7 proceeding if the value of the debtor's estate does not provide sufficient cash to pay all the creditors, it is given back to the debtor.

Correct AnswerverifiedShow Answer

Eligible for relief on a petition in bankruptcy under Chapter 11 is

Correct AnswerverifiedShow Answer

A voluntary petition in bankruptcy must include

Correct AnswerverifiedShow Answer

Only the debtor may file a plan under Chapter 13.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedeGear will not be able to repossess the ...View AnswerShow Answer

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eGear will not be able to repossess the ...
View Answer