Question 1

A ________ involves the sale of a debtor's assets by a trustee and the distribution of the money to creditors.

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 13
E)   Chapter 15F) A) and B)
G) B) and C)

Question 2

Which of the following is NOT required for a reaffirmation of debt?

Accepted Answer

A)   The reaffirmation agreement is made after the debt is discharged
B)   The reaffirmation agreement is made before the debt is discharged
C)   The debtor must be able to cancel the agreement
D)   The agreement must contain explicit information regarding the time period in which the debtor can cancel the agreement.
E)   The agreement should contain a statement notifying the creditor that the law does not require the agreement.F) A) and B)
G) A) and C)

Question 3

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Accepted Answer

A)   Chapter 13 permits individuals with regular income to pay their debts to creditors in installment plans under the supervision of the court.
B)   Any debtor who files under Chapter 13 could also have filed under Chapter 11.
C)   Chapter 13 repayment plans are usually simpler and less expensive than Chapter 11 plans.
D)   By statute Chapter 13 plans last between 36 and 60 months.
E)   Individuals, partnerships, and corporations may file for a Chapter 13 repayment plan.F) B) and E)
G) B) and D)

Question 4

Why is repayment under Chapter 13 distinct from other types of relief?

Accepted Answer

A)   Because Chapter 13 is the only type of relief available to debtors who are not insolvent.
B)   Because debts are discharged in Chapter 13 but not in other Chapters of bankruptcy.
C)   Because repayment plans are usually simpler and less expensive than Chapter 11 plans.
D)   Because repayment is voluntary only. A debtor cannot be forced into a repayment plan.
E)   Because Chapter 13 is an option only for municipalities, not individuals and businesses.F) B) and E)
G) A) and E)

Question 5

In order of priority, list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Accepted Answer

The first four classes of priority claim...

Question 6

For a collective bargaining agreement to be rejected under Chapter 11, the debtor must have first presented the proposed changes to the collective bargaining agreement to the employees' representative, and the employees reject the changes without good cause.

Accepted Answer

A) True 
 B)False

Question 7

Once the petition for bankruptcy is filed and the automatic stay has been granted, what is the next step in a bankruptcy case?

Accepted Answer

A)   The creation of a payment plan
B)   The granting of a permanent plan of action the debtor must take to move forward
C)   A determination on whether an order of relief should be granted
D)   Ordering a creditor meeting
E)   Discharging debtsF) D) and E)
G) B) and C)

Question 8

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Accepted Answer

A)   The stay affects claims of secured creditors in the same way in which it affects claims of unsecured creditors.
B)   Secured creditors with claims of over $5,000 are not affected by the stay.
C)   Secured creditors with claims of over $15,000 are not affected by the stay.
D)   Secured creditors with claims of over $20,000 are not affected by the stay.
E)   The court may exclude secured creditors from the stay if they petition the court to show that they do not have adequate protection under the stay.F) A) and B)
G) C) and D)

Question 9

[Consumer Debt] Isabel had not been keeping up with her spending and bought several expensive items. Between numerous credit cards and some unsecured loans, she had a total of 14 creditors. All her debt was consumer debt, and Isabel really wished that she had not put all those new clothes on her credit card. Although Isabel was struggling, she did not want to file for bankruptcy because she did not want a bad credit score. However, three of her credit card companies signed and filed an involuntary bankruptcy petition against her under Chapter 7. Isabel is unsure about how to proceed. While she is several months behind on a number of payments, including alimony payments she believes were unfairly awarded to her ex-husband, she does not particularly want to go bankrupt. She believes that the creditors have been unfair in not allowing her additional time in which to pay. On the other hand, she would really like to be rid of her excessive debt and stop collection efforts on the part of her ex-husband.
-Which of the following is true regarding the involuntary petition for bankruptcy filed by some of Isabel's creditors?

Accepted Answer

A)   Involuntary petitions are not allowed under Chapter 7.
B)   At least 5 creditors must file in order for an involuntary petition to be accepted; therefore, the involuntary petition will be dismissed in Isabel's case.
C)   Only 3 creditors may file an involuntary petition, but their aggregate claims must be $20,100; therefore, the petition will be dismissed in Isabel's case.
D)   The petition was properly filed because 3 or more creditors with unsecured claims signed the petition for involuntary bankruptcy.
E)   The petition was properly filed because only 2 or more creditors with secured or unsecured claims must sign a petition for involuntary bankruptcy.F) C) and E)
G) B) and D)

Question 10

Which of the following is NOT true of a Chapter 13 repayment plan?

Accepted Answer

A)   Creditors do not vote to approve a chapter 13 repayment plan.
B)   If the court approves of the repayment plan, it is accepted.
C)   The plan must provide for full payment of all claims.
D)   The plan is not required to provide for full payment of all claims.
E)   The plan is required to treat all same-class creditors equally.F) B) and D)
G) A) and C)

Exam 32: Bankruptcy and Reorganization

Which of the following is NOT required for a reaffirmation of debt?

Correct Answer
verified

A ________ involves the sale of a debtor's assets by a trustee and the distribution of the money to creditors.

Correct Answer
verified

For a collective bargaining agreement to be rejected under Chapter 11, the debtor must have first presented the proposed changes to the collective bargaining agreement to the employees' representative, and the employees reject the changes without good cause.

Correct Answer
verified

Correct Answer
verified

Why is repayment under Chapter 13 distinct from other types of relief?

Correct Answer
verified

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Correct Answer
verified

Once the petition for bankruptcy is filed and the automatic stay has been granted, what is the next step in a bankruptcy case?

Correct Answer
verified

In order of priority, list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Correct Answer
verified
The first four classes of priority claim...
View Answer

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Correct Answer
verified

Which of the following is NOT true of a Chapter 13 repayment plan?

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

Which of the following is NOT required for a reaffirmation of debt?

Correct AnswerverifiedShow Answer

A ________ involves the sale of a debtor's assets by a trustee and the distribution of the money to creditors.

Correct AnswerverifiedShow Answer

For a collective bargaining agreement to be rejected under Chapter 11, the debtor must have first presented the proposed changes to the collective bargaining agreement to the employees' representative, and the employees reject the changes without good cause.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why is repayment under Chapter 13 distinct from other types of relief?

Correct AnswerverifiedShow Answer

Which of the following is false regarding Chapter 13 of the bankruptcy code?

Correct AnswerverifiedShow Answer

Once the petition for bankruptcy is filed and the automatic stay has been granted, what is the next step in a bankruptcy case?

Correct AnswerverifiedShow Answer

In order of priority, list the first four classes of priority claims among unsecured creditors in a Chapter 7 bankruptcy case.

Correct AnswerverifiedThe first four classes of priority claim...View AnswerShow Answer

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Correct AnswerverifiedShow Answer

Which of the following is NOT true of a Chapter 13 repayment plan?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The first four classes of priority claim...
View Answer

Correct Answer
verified

Correct Answer
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