Question 1

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Accepted Answer

A)   a nonstatutory composition.
B)   a statutory assignment.
C)   an equity receivership.
D)   an automatic stay.E) A) and D)
F) None of the above

Question 2

Chapter 3 of the Bankruptcy Code deals with:

Accepted Answer

A)   the meetings of creditors.
B)   proof of claims.
C)   priority of claims.
D)   debts of farmersE) A) and B)
F) B) and D)

Question 3

A plan of reorganization under Chapter 13 will be confirmed when:

Accepted Answer

A)   the debtor has not been discharged before.
B)   the unsecured creditors are not discharged.
C)   the unsecured creditors receive the same amount as the secured creditors.
D)   the unsecured creditors receive at least as much as they would have if the debtor had liquidated.E) A) and D)
F) None of the above

Question 4

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

Accepted Answer

A)   an individual cannot use Chapter 11.
B)   a corporation cannot use Chapter 13.
C)   Chapter 11 cannot be instituted by involuntary petition.
D)   Chapter 13 requires unsecured debts to be less than $100,000.E) A) and C)
F) B) and D)

Question 5

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would be a voidable transfer if made within 90 days of bankruptcy?

Accepted Answer

A)   An exchange for new value.
B)   An enabling security interest perfected within 30 days after the debtor receives possession of the property.
C)   A payment made in the ordinary course of business.
D)   A payment made to or for the benefit of a creditor.E) All of the above
F) A) and D)

Question 7

A debtor who files for bankruptcy can keep up to $1,600 in jewelry and all social security,veteran's,and disability benefits under the exemptions found in the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 8

An assignment for the benefit of creditors requires the creditors' consent

Accepted Answer

A) True 
 B)False

Question 9

Most student loans cannot be discharged under Chapter 13.

Accepted Answer

A) True 
 B)False

Question 10

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

Accepted Answer

A) True 
 B)False

Question 11

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Accepted Answer

A) True 
 B)False

Question 12

In an assignment for the benefit of creditors,if each creditor is paid an equal share of his original obligation,the debtor is then discharged from any further obligation to the creditor.

Accepted Answer

A) True 
 B)False

Question 13

A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors.

Accepted Answer

A) True 
 B)False

Question 14

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Accepted Answer

A) True 
 B)False  True

Question 15

An involuntary petition for bankruptcy can be filed with respect to a:

Accepted Answer

A)   nonprofit charitable organization.
B)   partnership that invests in real estate.
C)   life insurance company.
D)   wheat farmer.E) None of the above
F) All of the above

Question 16

Which of the following debts would be discharged in bankruptcy?

Accepted Answer

A)   A consumer credit loan for a stove
B)   Property taxes on a beach house
C)   Student loans
D)   Alimony payments past dueE) A) and B)
F) A) and C)

Question 17

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some,but not all other creditors,the claims of the same rank share the money on a pro rata basis.

Accepted Answer

A) True 
 B)False

Question 18

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1) an automobile valued at $1,000; (2) a homestead valued at $75,000,on which First Bank holds a mortgage of $50,000; (3) personal jewelry valued at $1,100;and (4) monthly disability payments of $1,000.Assuming Edith elects to use the exemptions listed in the Bankruptcy Code,what property may Edith keep?

Accepted Answer

A)   The disability payments only.
B)   The disability payments and the homestead only.
C)   The disability payments plus the automobile,at least part of the equity in the homestead,and the jewelry.
D)   Nothing.She must sell all of her assets and have the proceeds distributed to the creditors,and she must turn the disability payments over to the trustee.E) A) and C)
F) None of the above C

Question 19

Federal district courts may hear all matters related to a bankruptcy,even if these matters are not normally permitted to be brought in federal court.

Accepted Answer

A) True 
 B)False  False

Question 20

A trustee in bankruptcy may sell the property of the debtor's estate.

Accepted Answer

A) True 
 B)False

Exam 38: Bankruptcy

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Correct Answer
verified

Chapter 3 of the Bankruptcy Code deals with:

Correct Answer
verified

A plan of reorganization under Chapter 13 will be confirmed when:

Correct Answer
verified

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

Correct Answer
verified

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Correct Answer
verified

Which of the following would be a voidable transfer if made within 90 days of bankruptcy?

Correct Answer
verified

A debtor who files for bankruptcy can keep up to $1,600 in jewelry and all social security,veteran's,and disability benefits under the exemptions found in the Bankruptcy Code.

Correct Answer
verified

An assignment for the benefit of creditors requires the creditors' consent

Correct Answer
verified

Most student loans cannot be discharged under Chapter 13.

Correct Answer
verified

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

Correct Answer
verified

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Correct Answer
verified

In an assignment for the benefit of creditors,if each creditor is paid an equal share of his original obligation,the debtor is then discharged from any further obligation to the creditor.

Correct Answer
verified

A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors.

Correct Answer
verified

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Correct Answer
verified
True

An involuntary petition for bankruptcy can be filed with respect to a:

Correct Answer
verified

Which of the following debts would be discharged in bankruptcy?

Correct Answer
verified

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some,but not all other creditors,the claims of the same rank share the money on a pro rata basis.

Correct Answer
verified

Correct Answer
verified
C

Federal district courts may hear all matters related to a bankruptcy,even if these matters are not normally permitted to be brought in federal court.

Correct Answer
verified
False

A trustee in bankruptcy may sell the property of the debtor's estate.

Correct Answer
verified

Exam 38: Bankruptcy

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

Correct AnswerverifiedShow Answer

Chapter 3 of the Bankruptcy Code deals with:

Correct AnswerverifiedShow Answer

A plan of reorganization under Chapter 13 will be confirmed when:

Correct AnswerverifiedShow Answer

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

Correct AnswerverifiedShow Answer

While certain debts of an individual are not dischargeable under Chapters 7,11,and 12,all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

Correct AnswerverifiedShow Answer

Which of the following would be a voidable transfer if made within 90 days of bankruptcy?

Correct AnswerverifiedShow Answer

A debtor who files for bankruptcy can keep up to $1,600 in jewelry and all social security,veteran's,and disability benefits under the exemptions found in the Bankruptcy Code.

Correct AnswerverifiedShow Answer

An assignment for the benefit of creditors requires the creditors' consent

Correct AnswerverifiedShow Answer

Most student loans cannot be discharged under Chapter 13.

Correct AnswerverifiedShow Answer

Commencing a voluntary case by filing a petition constitutes an automatic order for relief.

Correct AnswerverifiedShow Answer

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Correct AnswerverifiedShow Answer

In an assignment for the benefit of creditors,if each creditor is paid an equal share of his original obligation,the debtor is then discharged from any further obligation to the creditor.

Correct AnswerverifiedShow Answer

A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors.

Correct AnswerverifiedShow Answer

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

Correct AnswerverifiedTrue

An involuntary petition for bankruptcy can be filed with respect to a:

Correct AnswerverifiedShow Answer

Which of the following debts would be discharged in bankruptcy?

Correct AnswerverifiedShow Answer

After secured creditors in a Chapter 7 liquidation proceeding have been satisfied and there is enough money left to pay some,but not all other creditors,the claims of the same rank share the money on a pro rata basis.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

Federal district courts may hear all matters related to a bankruptcy,even if these matters are not normally permitted to be brought in federal court.

Correct AnswerverifiedFalse

A trustee in bankruptcy may sell the property of the debtor's estate.

Correct AnswerverifiedShow Answer

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True

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C

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False

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