Exam 26: Bankruptcy

Norma files a petition in bankruptcy. She turns her assets over to O'Brien,who sells them and then distributes the proceeds to Norma's creditors. O'Brien is

One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets.

Jill believes that she should file a plan for aChapter 13 discharge in bankruptcy. A court will confirm her bankruptcy plan if it provides for

Vito borrows $150,000 from Workers & Farmers Bank to buy a home. If he fails to make payments on the mortgage,the bank has the right to repossess and auction off the property securing the loan. This is

Philo files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for

Beatrix defaults on a debt to Credit Union Corporation. As a creditor,Credit Union can place liens on all of Beatrix's property except

Rodger's creditors try to force him into involuntary bankruptcy. The creditors will be unsuccessful if Rodger

In a few states,statutes allow the homestead exemption only if the judgment debtor has a family.

Lindsay operates a sole proprietorship,a corporation,and a partnership. Lindsay wants to obtain relief for her individual debts and the debts of her corporation and partnership. For each of these,Lindsay may file a petition in bankruptcy for relief through

A debtor must be insolvent to file for bankruptcy relief.

In a repayment plan case,the plan must provide for payment of all claims in full,whether or not they are entitled to priority.

George borrows funds from Hometown Credit Union (HCU)to buy real property. George signs a written instrument that gives HCU an interest in the property as security for the debt's payment. This is

Robin's home is in a state that has a $60,000 homestead exemption. Robin de-faults on a $120,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $160,000. -Refer to Fact Pattern 26-1. Robin will receive

In the majority of states,debtors may use only federal,not state,exemptions to exempt certain property from the bankruptcy.

Any "person"-defined as including corporations-may be a debtor in a liquidation proceeding.

To supply false information on official bankruptcy schedules is a crime.

Robin's home is in a state that has a $60,000 homestead exemption. Robin de-faults on a $120,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $160,000. -Refer to Fact Pattern 26-1. Suburban Mortgage may recover

Roland files forChapter 7 bankruptcy. After all his assets have been sold and the proceeds distributed among his creditors,Roland's remaining debts

Rhea's voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as

A bankruptcy court may deny a discharge based on a debtor's conduct.