Question 1

Because the purpose of a Chapter 7 proceeding is to provide a debtor with a fresh start, a discharge under Chapter 7 frees a debtor of all of his or her debts.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Businesses must be technically insolvent to file for bankruptcy relief.

Accepted Answer

A) True 
 B)False

Question 4

Anyone obligated to a creditor can declare bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Under Chapter 7 and Chapter 11

Accepted Answer

A)  all of the choices.
B)  petitions can be filed voluntarily or involuntarily.
C)  the same principles govern the entry of the order for relief.
D)  the automatic stay provision applies.

Question 6

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)  $155.
B)  $1,575.
C)  $15,775.
D)  $157,750.

Question 7

Bankruptcy relief is provided under state, not federal, law.

Accepted Answer

A) True 
 B)False

Question 8

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 9

Under Chapter 11, a plan to conserve and administer the debtor's assets must be submitted for acceptance and confirmation to

Accepted Answer

A)  the creditors only.
B)  the court only.
C)  the creditors and the court.
D)  the debtor only.

Question 10

Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through

Accepted Answer

A)  a liquidation.
B)  a reorganization.
C)  a repayment plan.
D)  an adjustment of debts.

Question 11

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Accepted Answer

A)  denied a discharge of his or debts in the bankruptcy proceeding.
B)  ordered to complete a means test.
C)  forced to submit to an examination by the creditors.
D)  told to turn over control of his or her property to a bankruptcy trustee.

Question 12

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

Accepted Answer

A) True 
 B)False

Question 13

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

Accepted Answer

A) True 
 B)False

Question 14

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Accepted Answer

A)  goodwill.
B)  good faith.
C)  substantial means.
D)  sufficient credit.

Question 15

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

Accepted Answer

A) True 
 B)False

Question 16

Shippers Dispatch Company orders office equipment from Office Outfitters, Inc., which has an unperfected security interest in the equipment until it is paid for. Meanwhile, Shippers Dispatch takes out a loan from Capital Credit, Inc., subject to a security interest in Shippers Dispatch's building and equipment, which Capital perfects. Shippers Dispatch files a bankruptcy petition under Chapter 7. If the petition is granted, in what order will Shippers Dispatch's creditors be paid?

Accepted Answer

The order of the priority of the credito...

Question 17

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Accepted Answer

A)  owns a business with ten or more employees.
B)  is a farmer.
C)  is also a creditor.
D)  refuses to comply.

Question 18

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

Accepted Answer

A)  encourage the continued use of credit.
B)  ensure that third parties will continue to guarantee loans.
C)  provide a new start without creditors' claims.
D)  shield assets from creditors' claims.

Question 19

In a Chapter 7 proceeding, 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 20

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Accepted Answer

A)  puts into place an automatic stay.
B)  discharges the debtor's obligations.
C)  dismisses the petition.
D)  distributes the debtor's assets to his or her creditors.

Exam 31: Bankruptcy Law

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Correct Answer
verified

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Correct Answer
verified

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

Correct Answer
verified

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 Answer
verified

Under Chapter 7 and Chapter 11

Correct Answer
verified

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Correct Answer
verified

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

Correct Answer
verified

Bankruptcy relief is provided under state, not federal, law.

Correct Answer
verified

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

Correct Answer
verified

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Correct Answer
verified

Anyone obligated to a creditor can declare bankruptcy.

Correct Answer
verified

Businesses must be technically insolvent to file for bankruptcy relief.

Correct Answer
verified

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

Correct Answer
verified

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

Correct Answer
verified

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

Correct Answer
verified

Correct Answer
verified
The order of the priority of the credito...
View Answer

Because the purpose of a Chapter 7 proceeding is to provide a debtor with a fresh start, a discharge under Chapter 7 frees a debtor of all of his or her debts.

Correct Answer
verified

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Correct Answer
verified

Under Chapter 11, a plan to conserve and administer the debtor's assets must be submitted for acceptance and confirmation to

Correct Answer
verified

Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through

Correct Answer
verified

Exam 31: Bankruptcy Law

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Correct AnswerverifiedShow Answer

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Correct AnswerverifiedShow Answer

In a Chapter 13 bankruptcy, debtors retain most of their assets and agree to payments on their debts, most of which are discharged within three years.

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

Under Chapter 7 and Chapter 11

Correct AnswerverifiedShow Answer

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Bankruptcy relief is provided under state, not federal, law.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Correct AnswerverifiedShow Answer

Anyone obligated to a creditor can declare bankruptcy.

Correct AnswerverifiedShow Answer

Businesses must be technically insolvent to file for bankruptcy relief.

Correct AnswerverifiedShow Answer

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe order of the priority of the credito...View AnswerShow Answer

Because the purpose of a Chapter 7 proceeding is to provide a debtor with a fresh start, a discharge under Chapter 7 frees a debtor of all of his or her debts.

Correct AnswerverifiedShow Answer

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

Correct AnswerverifiedShow Answer

Under Chapter 11, a plan to conserve and administer the debtor's assets must be submitted for acceptance and confirmation to

Correct AnswerverifiedShow Answer

Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The order of the priority of the credito...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified