Exam 24: Bankruptcy and Reorganization

The 2005 Act has made it more difficult for a debtor to qualify for Chapter 7 bankruptcy,primarily due to a new requirement that the debtor must satisfy a "means test."

If the debtor is represented by an attorney,a reaffirmation agreement involving the debtor need not be approved by the court.

The bankruptcy estate is created upon the termination of a bankruptcy case.

A liquidation bankruptcy is also known as straight bankruptcy.

In the first 120 days after the granting of an order for relief in a Chapter 11 bankruptcy,who can file a plan of reorganization?

Two (2)types of bankruptcy petitions can be filed: the ________ petition and the ________ petition.

Legal actions to collect pre-petition debts are not "stayed" by the filing of a voluntary or involuntary bankruptcy petition.

Under the 2005 Act,the highest priority of unsecured claims includes attorneys' fees,court costs,and other costs associated with the administration of the bankruptcy estate.

A reaffirmation agreement must be entered into before bankruptcy discharge is granted.

Bankruptcy law is exclusively federal law; there are no state bankruptcy laws.

Chapter 13 bankruptcies can only be filed voluntarily.

When a bankruptcy petition is filed,legal actions to recover alimony are "stayed," but child support cases are not.

Under the 2005 Act,the court must find substantial abuse of Chapter 7 for the court to disqualify the debtor and deny bankruptcy relief.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that before an individual debtor receives a discharge in a Chapter 7 or Chapter 13 bankruptcy,the debtor must attend a personal financial management course approved by the United States Trustee.

In a Chapter 7 bankruptcy proceeding,a secured creditor's only legal recovery option is foreclosure.

A state may pass its own exemption laws and require debtors in that state to follow the state exemptions,without an option to choose the federal exemptions.

In a Chapter 13 bankruptcy,a "composition" agreement is one in which the payment period for the debtor to repay debts is extended.

Even if a debtor qualifies under the median or means test,Chapter 7 relief may be denied by the court because of bad faith,or after examining the:

Bankruptcy petitions may be filed by the debtor without the assistance of an attorney or filing service.

There is usually no trustee named in a Chapter 11 bankruptcy case.