Exam 38: Bankruptcy

Within each federal district court is established a bankruptcy court staffed by bankruptcy judges.

A writ of execution is issued after a judgment against the debtor is entered in court.

A composition would bind to the settlement all of debtor's creditors.

A debtor may not file a plan at any time in a Chapter 11 reorganization.

Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include all of the following except:

Bankruptcy legislation serves a dual purpose.What are these purposes?

Garnishment cannot be ordered prior to a judgment's being entered.

Baker goes into bankruptcy owing $5,000 as wages to his employees.There is enough in his estate to pay all costs of administration and enough to pay his employees, but if the employees are paid, there will be nothing left for the general creditors.Which of the following is NOT true under the above facts?

Which of the following claims will be paid first from the debtor's estate in a Chapter 7 bankruptcy?

In bankruptcy law, an insider may be defined as:

In a Chapter 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.

A trustee in bankruptcy may sell the property of the debtor's estate.

A plan for reorganization under Chapter 11 does not have to meet which of the following requirements to be confirmed by the court?

Any debtors may seek relief under Chapter 7 of the Bankruptcy Code.

While certain debts of an individual are not dischargeable under Chapters 7, 11, and 12, all debts are dischargeable under Chapter 13's "hardship discharge" provisions.

A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors.

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1) an automobile valued at $1,000; (2) a homestead valued at $75,000, on which First Bank holds a mortgage of $50,000; (3) personal jewelry valued at $1,100; and (4) monthly disability payments of $1,000.Assuming Edith elects to use the exemptions listed in the Bankruptcy Code, what property may Edith keep?

The debtor is presumed to have been insolvent on and during what period of time immediately preceding the date on which the petition was filed?

An involuntary petition in bankruptcy:

The court will order the appointment of a trustee in a Chapter 11 proceeding only for cause or if the appointment is in the interests of creditors or equity security holders.