Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

With respect to creditors, the main goal of bankruptcy law is to

Accepted Answer

A)  ensure that creditors will continue to lend to insolvent debtors.
B)  protect creditor assets from diminution in value.
C)  ensure equitable treatment in the competition for debtor assets.
D)  make all debtor property available for all creditor claims.E) B) and C)
F) All of the above

Question 3

Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to be discharged are

Accepted Answer

A)  taxes accruing within the last three years.
B)  claims based on the debtor's willful or malicious conduct or fraud.
C)  none of the choices.
D)  domestic-support obligations.E) B) and C)
F) A) and C) C

Question 4

An involuntary bankruptcy occurs when a debtor

Accepted Answer

A)  files forms designated for the purpose.
B)  is unable to pay his or her debts as they come due.
C)  is forced into bankruptcy proceedings by his or her creditors.
D)  has debts that exceed the fair market value of his or her assets.E) B) and D)
F) C) and D)

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

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Accepted Answer

A)  permits creditors to force a debtor into involuntary bankruptcy.
B)  allows a debtor to retain possession of his or her assets.
C)  is more expensive and more complicated.
D)  permits any interested party to file a repayment plan.E) None of the above
F) A) and D)

Question 7

Under Chapter 7, once the proceeds of the bankruptcy estate have been distributed, 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) A) and B)
F) None of the above

Question 8

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) All of the above
F) C) and D)

Question 9

Voluntary petitions may be filed to initiate Chapter 7 or Chapter 11, but not Chapter 13, bankruptcies.

Accepted Answer

A) True 
 B)False

Question 10

Chapter 7 of the Bankruptcy Code provides for

Accepted Answer

A)  the adjustment of debts of individuals -not businesses.
B)  liquidation proceedings.
C)  the reorganization of the obligations of the debtor.
D)  the adjustment of debts of businesses -not individuals.E) B) and D)
F) None of the above

Question 11

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 12

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 D)
F) B) and C)

Question 13

Under Chapter 13, a plan may provide for the payment of all of the debtor's obligations in full.

Accepted Answer

A) True 
 B)False

Question 14

Under Chapter 11, the debtor's obligations most likely to be discharged are

Accepted Answer

A)  taxes accruing within the last three years.
B)  claims based on the debtor's willful or malicious conduct or fraud.
C)  none of the choices.
D)  domestic-support obligations.E) A) and B)
F) C) and D)

Question 15

Each state permits a debtor in bankruptcy to retain the family home in order to preserve some equity to pay any debts that are discharged.

Accepted Answer

A) True 
 B)False  False

Question 16

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) A) and C)
F) A) and D)

Question 17

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter 7 petition or explain why such a motion would not be appropriate.

Accepted Answer

A) True 
 B)False

Question 18

In addition to financial statements, each voluntary petition in bankruptcy must include

Accepted Answer

A)  a plan outlining how debt payments will be made.
B)  a certificate proving the receipt of credit counseling.
C)  a creditors' agreement allowing the debtor to continue in business.
D)  a statement of preference for one creditor over another.E) All of the above
F) B) and C)

Question 19

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 A

Question 20

To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

Accepted Answer

A) True 
 B)False

Exam 31: Bankruptcy Law

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

Correct AnswerverifiedShow Answer

With respect to creditors, the main goal of bankruptcy law is to

Correct AnswerverifiedShow Answer

Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to be discharged are

Correct AnswerverifiedC

An involuntary bankruptcy occurs when a debtor

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

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Correct AnswerverifiedShow Answer

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

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

Voluntary petitions may be filed to initiate Chapter 7 or Chapter 11, but not Chapter 13, bankruptcies.

Correct AnswerverifiedShow Answer

Chapter 7 of the Bankruptcy Code provides for

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

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

Correct AnswerverifiedShow Answer

Under Chapter 13, a plan may provide for the payment of all of the debtor's obligations in full.

Correct AnswerverifiedShow Answer

Under Chapter 11, the debtor's obligations most likely to be discharged are

Correct AnswerverifiedShow Answer

Each state permits a debtor in bankruptcy to retain the family home in order to preserve some equity to pay any debts that are discharged.

Correct AnswerverifiedFalse

Under Chapter 13, a repayment plan must provide for

Correct AnswerverifiedShow Answer

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter 7 petition or explain why such a motion would not be appropriate.

Correct AnswerverifiedShow Answer

In addition to financial statements, each voluntary petition in bankruptcy must include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

Correct AnswerverifiedShow Answer

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