Question 1

Claims for alimony and child support can be avoided by bankruptcy.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is prohibited 90 days prior to filing a bankruptcy petition?

Accepted Answer

A)  A debtor inheriting ancestral property 
B)  A debtor receiving valuable property from relatives and friends 
C)  A debtor selling his assets to liquidate them 
D)  A debtor clearing his debts to one creditor while ignoring others 
A)  A debtor inheriting ancestral property 
B)  A debtor receiving valuable property from relatives and friends 
C)  A debtor selling his assets to liquidate them 
D)  A debtor clearing his debts to one creditor while ignoring others D

Question 3

Property such as household effects is exempt from seizure for the payment of debts.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of following debts can be avoided by bankruptcy?

Accepted Answer

A)  Wages earned within three months prior to bankruptcy proceedings 
B)  Debts owed by reason of embezzlement 
C)  Educational loan debts 
D)  Claims for alimony and child support 
A)  Wages earned within three months prior to bankruptcy proceedings 
B)  Debts owed by reason of embezzlement 
C)  Educational loan debts 
D)  Claims for alimony and child support

Question 5

Jake, a businessman, filed for bankruptcy and was declared insolvent by the courts. He owed $15,000 each to two creditors and $5,000 each to two others. The courts also decreed that he should sell his house worth $30,000, to pay his debts. Which of the following is legally permissible in this scenario?

Accepted Answer

A)  Jake is entitled to sell his house and pay the creditors on a pro-rata basis. 
B)  Jake is entitled to sell his house and pay whomsoever he chooses. 
C)  Jake is entitled to sell his house and pay the creditors he owes the maximum amount of money to. 
D)  Jake is entitled to sell his house and pay the creditors he owes the least amount of money to. 
A)  Jake is entitled to sell his house and pay the creditors on a pro-rata basis. 
B)  Jake is entitled to sell his house and pay whomsoever he chooses. 
C)  Jake is entitled to sell his house and pay the creditors he owes the maximum amount of money to. 
D)  Jake is entitled to sell his house and pay the creditors he owes the least amount of money to.

Question 6

Which of the following is true of bankruptcy petitions?

Accepted Answer

A)  Involuntary petitions require petitions from a minimum of two creditors. 
B)  A creditor's claims must not be subject to a valid dispute. 
C)  A creditor's claims can be contingent. 
D)  Voluntary petitions cannot be filed by farmers. 
A)  Involuntary petitions require petitions from a minimum of two creditors. 
B)  A creditor's claims must not be subject to a valid dispute. 
C)  A creditor's claims can be contingent. 
D)  Voluntary petitions cannot be filed by farmers.

Question 7

Debts due on a judgment for intentional injury to others cannot be avoided by bankruptcy.

Accepted Answer

A) True 
 B)False

Question 8

Unsecured claims are those for which creditors have no lien on specific assets.

Accepted Answer

A) True 
 B)False

Question 9

A husband and wife cannot file a bankruptcy petition jointly.

Accepted Answer

A) True 
 B)False

Question 10

Under Chapter 11, the Bankruptcy Code provides a special rehabilitation system designed for businesses so that they may be reorganized rather than liquidated.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is legally permissible after a debtor is discharged from his debt?

Accepted Answer

A)  A creditor can collect his dues from the debtor's relatives. 
B)  A debtor is entitled to refuse child support payments. 
C)  A creditor is allowed to collect up to 25 percent of his dues. 
D)  A debtor is allowed to engage in business activities. 
A)  A creditor can collect his dues from the debtor's relatives. 
B)  A debtor is entitled to refuse child support payments. 
C)  A creditor is allowed to collect up to 25 percent of his dues. 
D)  A debtor is allowed to engage in business activities.

Question 12

Under Chapter 7 of the Bankruptcy Code, which of the following is classified as a special circumstance to file for bankruptcy?

Accepted Answer

A)  Debt caused by a major hurricane 
B)  Debt caused by gambling losses 
C)  Debt caused by real estate losses 
D)  Debt caused by faulty stock market investment 
A)  Debt caused by a major hurricane 
B)  Debt caused by gambling losses 
C)  Debt caused by real estate losses 
D)  Debt caused by faulty stock market investment

Question 13

Under the Bankruptcy code, bankruptcy is applicable to:

Accepted Answer

A)  any bank which operates in two different states. 
B)  any person who has a place of business. 
C)  any loan association with a fixed capital. 
D)  any insurance company with a business property. 
A)  any bank which operates in two different states. 
B)  any person who has a place of business. 
C)  any loan association with a fixed capital. 
D)  any insurance company with a business property.

Question 14

A cram down can be imposed even if dissenting unsecured creditors are not paid in full.

Accepted Answer

A) True 
 B)False

Question 15

Before debtors may file for bankruptcy, they must complete a 45-minute credit counseling session in the six months prior to filing.

Accepted Answer

A) True 
 B)False

Question 16

State the debts that cannot be avoided by bankruptcy.

Accepted Answer

Certain obligations cannot be avoided by

Question 17

Any person who has a property in the United States can be a debtor under the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 18

A court will enter an order for relief on the filing of an involuntary bankruptcy petition if the debtor does not pay debts as they become due.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following best describes cram down?

Accepted Answer

A)  It is a duty that the debtor must perform during bankruptcy as assigned by court. 
B)  It is a past money transfer to a debtor's relative disallowed by court. 
C)  It is an involuntary bankruptcy suit filed against a debtor. 
D)  It is a reorganization plan imposed by court in spite of creditors' objections. 
A)  It is a duty that the debtor must perform during bankruptcy as assigned by court. 
B)  It is a past money transfer to a debtor's relative disallowed by court. 
C)  It is an involuntary bankruptcy suit filed against a debtor. 
D)  It is a reorganization plan imposed by court in spite of creditors' objections.

Question 20

Bankruptcy law uses different procedures in liquidating the estate under a voluntary bankruptcy proceeding and an involuntary one.

Accepted Answer

A) True 
 B)False

Exam 40: Bankruptcy

Claims for alimony and child support can be avoided by bankruptcy.

Which of the following is prohibited 90 days prior to filing a bankruptcy petition?

Property such as household effects is exempt from seizure for the payment of debts.

Which of following debts can be avoided by bankruptcy?

Which of the following is true of bankruptcy petitions?

Debts due on a judgment for intentional injury to others cannot be avoided by bankruptcy.

Unsecured claims are those for which creditors have no lien on specific assets.

A husband and wife cannot file a bankruptcy petition jointly.

Under Chapter 11, the Bankruptcy Code provides a special rehabilitation system designed for businesses so that they may be reorganized rather than liquidated.

Which of the following is legally permissible after a debtor is discharged from his debt?

Under Chapter 7 of the Bankruptcy Code, which of the following is classified as a special circumstance to file for bankruptcy?

Under the Bankruptcy code, bankruptcy is applicable to:

A cram down can be imposed even if dissenting unsecured creditors are not paid in full.

Before debtors may file for bankruptcy, they must complete a 45-minute credit counseling session in the six months prior to filing.

State the debts that cannot be avoided by bankruptcy.

Any person who has a property in the United States can be a debtor under the Bankruptcy Code.

A court will enter an order for relief on the filing of an involuntary bankruptcy petition if the debtor does not pay debts as they become due.

Which of the following best describes cram down?

Bankruptcy law uses different procedures in liquidating the estate under a voluntary bankruptcy proceeding and an involuntary one.

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

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