Question 1

In a repayment plan case,the plan must provide for payment of all obligations in full.

Accepted Answer

A) True 
 B)False  False

Question 2

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Accepted Answer

A) force Verna to file for relief through an individual repayment plan. 
B) discharge Verna's debts. 
C) distribute Verna's property to Verna's creditors. 
D) issue an automatic stay against any actions by Verna's creditors. 
A) force Verna to file for relief through an individual repayment plan. 
B) discharge Verna's debts. 
C) distribute Verna's property to Verna's creditors. 
D) issue an automatic stay against any actions by Verna's creditors. A

Question 3

Under federal law,an employer can dismiss an employee because his or her wages are being garnished.

Accepted Answer

A) True 
 B)False  False

Question 4

Checkerboard Pizza,Inc.(CPI),files a petition in bankruptcy for relief through a reorganization.CPI's reorganization plan must contain

Accepted Answer

A) a plan to turn over its future income to the trustee. 
B) a certificate proving attendance at a credit-counseling briefing. 
C) a provision of adequate means for the plan's execution. d a statement of preference for one creditor over another. 
A) a plan to turn over its future income to the trustee. 
B) a certificate proving attendance at a credit-counseling briefing. 
C) a provision of adequate means for the plan's execution. d a statement of preference for one creditor over another.

Question 5

Subrogation refers to the right of a co-surety to recover from the other co-sureties the amount paid above his or her proportionate share of a debt.

Accepted Answer

A) True 
 B)False

Question 6

To adjust debt and institute a repayment plan,Charlie-who is not a corporation,a partnership,or a family farmer or fisherman-may file a petition in bankruptcy for relief through

Accepted Answer

A) a liquidation. 
B) a reorganization. 
C) a repayment plan. 
D) a family-farmer bankruptcy plan. 
A) a liquidation. 
B) a reorganization. 
C) a repayment plan. 
D) a family-farmer bankruptcy plan.

Question 7

The content of a family-fisherman bankruptcy plan is basically the same as that of a repayment plan.

Accepted Answer

A) True 
 B)False

Question 8

An involuntary bankruptcy occurs when the debtor's credit does not cover all of his or her debts.

Accepted Answer

A) True 
 B)False

Question 9

Teona files a voluntary petition in bankruptcy for relief through a liquidation.Debts that will not be discharged include claims for

Accepted Answer

A) domestic-support obligations. 
B) money to be paid for goods not delivered. 
C) contributions to employee benefit plans. 
D) long overdue credit-card debt. 
A) domestic-support obligations. 
B) money to be paid for goods not delivered. 
C) contributions to employee benefit plans. 
D) long overdue credit-card debt.

Question 10

Payment of the principal obligation will not discharge the surety from the obligation.

Accepted Answer

A) True 
 B)False

Question 11

Laurel defaults on a loan owed to Maverick Bank.As a creditor,Maverick may attempt to place liens on all of Laurel's property except

Accepted Answer

A) motor vehicles used to commute to work. 
B) stock in various corporations. 
C) items that Laurel selects. 
D) vacant commercial property. 
A) motor vehicles used to commute to work. 
B) stock in various corporations. 
C) items that Laurel selects. 
D) vacant commercial property.

Question 12

Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of

Accepted Answer

A) state law. 
B) federal law. 
C) the U.S.Constitution. 
D) international law. 
A) state law. 
B) federal law. 
C) the U.S.Constitution. 
D) international law.

Question 13

Bartleby owes $5,000 to Countryside Credit Union.As a prejudgment remedy to collect the debt,Countryside could use

Accepted Answer

A) attachment. 
B) contribution. 
C) execution. 
D) subrogation. 
A) attachment. 
B) contribution. 
C) execution. 
D) subrogation.

Question 14

Refer to Fact Pattern 12-2.Mary will receive

Accepted Answer

A) 0. 
B) $30,000. 
C) $50,000. 
D) $60,000. 
A) 0. 
B) $30,000. 
C) $50,000. 
D) $60,000.

Question 15

A bankruptcy estate consists of all the debtor's interests in property currently held,wherever located.

Accepted Answer

A) True 
 B)False

Question 16

An individual debtor is allowed to exempt certain property from the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 17

Federal law governs garnishment actions.

Accepted Answer

A) True 
 B)False

Question 18

Petulia is a debtor.Her employer Quantum Investments,Inc.,her alma mater State University,and TimePay Credit Company are her creditors.For these parties,a petition in bankruptcy for relief through an individual's repayment plan could be filed on Petulia's behalf by Petulia and

Accepted Answer

A) none of the other parties. 
B) her employer or her creditors. 
C) her creditors only. 
D) her employer only. 
A) none of the other parties. 
B) her employer or her creditors. 
C) her creditors only. 
D) her employer only.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A surety is secondarily liable for the debt of a principal.

Accepted Answer

A) True 
 B)False

Exam 12: Creditor-Debtor Relations and Bankruptcy

In a repayment plan case,the plan must provide for payment of all obligations in full.

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Under federal law,an employer can dismiss an employee because his or her wages are being garnished.

Checkerboard Pizza,Inc.(CPI),files a petition in bankruptcy for relief through a reorganization.CPI's reorganization plan must contain

Subrogation refers to the right of a co-surety to recover from the other co-sureties the amount paid above his or her proportionate share of a debt.

To adjust debt and institute a repayment plan,Charlie-who is not a corporation,a partnership,or a family farmer or fisherman-may file a petition in bankruptcy for relief through

The content of a family-fisherman bankruptcy plan is basically the same as that of a repayment plan.

An involuntary bankruptcy occurs when the debtor's credit does not cover all of his or her debts.

Teona files a voluntary petition in bankruptcy for relief through a liquidation.Debts that will not be discharged include claims for

Payment of the principal obligation will not discharge the surety from the obligation.

Laurel defaults on a loan owed to Maverick Bank.As a creditor,Maverick may attempt to place liens on all of Laurel's property except

Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of

Bartleby owes $5,000 to Countryside Credit Union.As a prejudgment remedy to collect the debt,Countryside could use

Refer to Fact Pattern 12-2.Mary will receive

A bankruptcy estate consists of all the debtor's interests in property currently held,wherever located.

An individual debtor is allowed to exempt certain property from the bankruptcy.

Federal law governs garnishment actions.

Petulia is a debtor.Her employer Quantum Investments,Inc.,her alma mater State University,and TimePay Credit Company are her creditors.For these parties,a petition in bankruptcy for relief through an individual's repayment plan could be filed on Petulia's behalf by Petulia and

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

A surety is secondarily liable for the debt of a principal.

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Ethics and Business Decision Making

Courts and Alternative Dispute Resolution

Constitutional Authority to Regulate Business

Torts,cyber Torts,and Strict Liabiity

Criminal Law and Cyber Crime

International Law in a Global Economy

Intellectual Property and Internet Law

A: Online Developments:

Formation in Traditional and E-Contracts

Contract Performance,breach,and Remedies

Sales,leases,and Product Liability

Mortgages Foreclosures After the Recession

Small Business Organizations

A: Landmark in the Legal Environment:

Corporations

Agency

Employment,immigration,and Labor Law

Employment Discrimination

Powers and Functions of Administrative Agencies

Consumer Protection

Protecting the Environment

Real Property and Land-Use Control

Antitrust Law and Promoting Competition

Investor Protection and Corporate Governance

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