Question 1

Debts that remain after a Chapter 7 liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Accepted Answer

A) True 
 B)False

Question 2

Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to remain and not be discharged include

Accepted Answer

A)   taxes accruing within the last three years.
B)   credit card debt accrued in the last three years.
C)   medical bills from items in the past five years.
D)   debt on a vehicle.E) None of the above
F) A) and B)

Question 3

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 4

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 5

A debtor cannot challenge an involuntary bankruptcy petition.

Accepted Answer

A) True 
 B)False

Question 6

Under Chapter 11, a reorganization plan must

Accepted Answer

A)   not separate creditors into different groups.
B)   specify the treatment to be afforded to the debtor by the creditors.
C)   provide an adequate means for the plan's execution.
D)   demonstrate insolvency of the debtor.E) C) and D)
F) All of the above

Question 7

Under Chapter 7, once the proceeds of the bankruptcy estate have been distributed, all or most of the debtor's remaining debts

Accepted Answer

A)   are discharged .
B)   paid by the court.
C)   renewed without legal action as obligations of the debtor .
D)   subject to legal actions to recover any unpaid amounts.E) B) and D)
F) A) and B)

Question 8

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least

Accepted Answer

A)   $153.
B)   $1,532.
C)   $15,325 .
D)   $153,250.E) All of the above
F) B) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Under Chapter 7, at a meeting of creditors, one of the creditors is elected to take over the debtor's assets.

Accepted Answer

A) True 
 B)False

Question 11

A Chapter 13 proceeding is more expensive and complicated than a Chapter 11 or Chapter 7 proceeding.

Accepted Answer

A) True 
 B)False

Question 12

In a Chapter 7 proceeding if there is not enough money to pay all the creditors, it is given back to the debtor.

Accepted Answer

A) True 
 B)False

Question 13

Ava files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution. Brian most likely is

Accepted Answer

A)   a secured creditor .
B)   a bankruptcy court judge.
C)   a bankruptcy trustee .
D)   a debtor who filed jointly for bankruptcy under a single petition.E) All of the above
F) B) and C)

Question 14

In Chapter 11 proceedings, a debtor is allowed to continue in business.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Under Chapter 7, a discharge is most likely to be denied if the debtor

Accepted Answer

A)   conceals property to hinder or delay a creditor .
B)   is insolvent.
C)   continues to have debts after the distribution of the estate .
D)   hires an attorney to assist in the bankruptcy process.E) A) and D)
F) B) and C)

Question 17

Businesses must be insolvent to file for bankruptcy relief.

Accepted Answer

A) True 
 B)False

Question 18

In a Chapter 7 proceeding, the bankruptcy trustee distributes the bankruptcy estate to creditors with proofs of claim.

Accepted Answer

A) True 
 B)False

Question 19

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 C)
F) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 34: Bankruptcy

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To force a debtor with twelve or more creditors into bankruptcy proceedings, at least three of those who join in the petition must have unsecured claims that add up to at least

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

In a Chapter 7 proceeding, the bankruptcy trustee distributes the bankruptcy estate to creditors with proofs of claim.

Correct AnswerverifiedShow Answer

A debtor cannot challenge an involuntary bankruptcy petition.

Correct AnswerverifiedShow Answer

In Chapter 11 proceedings, a debtor is allowed to continue in business.

Correct AnswerverifiedShow Answer

In a Chapter 7 proceeding if there is not enough money to pay all the creditors, it is given back to the debtor.

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, at a meeting of creditors, one of the creditors is elected to take over the debtor's assets.

Correct AnswerverifiedShow Answer

Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to remain and not be discharged include

Correct AnswerverifiedShow Answer

A Chapter 13 proceeding is more expensive and complicated than a Chapter 11 or Chapter 7 proceeding.

Correct AnswerverifiedShow Answer

Under Chapter 11, a reorganization plan must

Correct AnswerverifiedShow Answer

A bankruptcy trustee is accountable for

Correct AnswerverifiedShow Answer

Businesses must be insolvent to file for bankruptcy relief.

Correct AnswerverifiedShow Answer

Ava files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution. Brian most likely is

Correct AnswerverifiedShow Answer

Under Chapter 7, a discharge is most likely to be denied if the debtor

Correct AnswerverifiedShow Answer

Under Chapter 7, once the proceeds of the bankruptcy estate have been distributed, all or most of the debtor's remaining debts

Correct AnswerverifiedShow Answer

Debts that remain after a Chapter 7 liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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