Exam 21: Bankruptcy Law: in Theory, in History, and in Practice

Under Chapter 11,the debtor becomes a debtor in possession and continues to operate performing most of the functions of bankruptcy judge.

Under a Chapter 13,creditors can force an involuntary bankruptcy filing if the debtor has a steady income.

Trudy has a steady income,but is behind on her payment of debts.Trudy wants to pay her debts,but needs some relief from her creditors.Discuss what type of Bankruptcy Procedure would best fit her case.

The first step in the 'means test' is to compare the debtor's average income during the previous six months with the median income for a family of that size in the United States.

Under the new Bankruptcy Code,alimony,child support,and Social Security payments are exempt up to an aggregate of $25,000 per year.

A debtor who continues to run a business and performs most of the functions that a trustee performs in other types of bankruptcy is called a(n):

Joseph owes $15,000 to Carmel Enterprises,$8,500 to Vulcan Co. ,$11,000 to David and $11,500 to Sigma Enterprises.He has not been making payments on these debts for the past 20 months.Which of these creditors can force Joseph into involuntary bankruptcy?

The Bankruptcy Code allows debtors to maintain a minimum standard of living by exempting certain necessary items of property,including for example,professional tools,and medical supplies.

Vernon owns a family run farming business.He earned $100,000 in the current financial year.He owes $70,000 that he cannot pay.This debt forms a part of his farm expenses to creditors,but he wants to keep the business running.Which type bankruptcy should Vernon file for?

Under Chapter 13 of the Bankruptcy Code,what happens if the debtor submits the repayment plan to the court,but the court has yet to hold its hearing?

Josh,a college student,has been told by his friends that filing for bankruptcy after graduation will discharge all his student loans.Discuss if this is correct.

Under the 2005 Bankruptcy Act,debtors are required to meet which of the following conditions file for Chapter 7 bankruptcy?

Stan commits securities fraud and takes $5,000,000 from a variety of investors.Stan is convicted of a crime and then sued by the investors.Stan files for bankruptcy.What relief will the bankruptcy filing grant Stan?

When a petition is filed,an automatic stay goes into effect which postpones ALL collection proceedings against the debtor.

Stan has debt problems.He has unpaid alimony and child support payments.Big Bank is threatening to repossess his car because he is behind on his payments,and a variety of creditors are threatening to sue.He wants to discharge most of his debts and begin with a clean slate.Discuss what action will help Stan's situation.

Which of the following is a duty vested in a trustee by the court,when the debtor is a business and files a Chapter 7 petition?

Once a Chapter 12 plan is created,the trustee holds a confirmation hearing with creditors who either vote to confirm or deny the plan.

In 1978,Chapters 11 and 13 of the Bankruptcy Code were created,which:

The only individuals specifically excluded from filing under Chapter 11 are:

Under Chapter 13,agencies charged with collecting and recovering unpaid child-support payments are allowed to continue such efforts despite the bankruptcy filing.