Question 1

How is a determination made regarding the identity of the trustee in a Chapter 7 proceeding?

Accepted Answer

A) The debtor appoints the trustee. 
B) The court clerk appoints the trustee. 
C) The district court judge appoints the trustee. 
D) The bankruptcy judge appoints the trustee. 
E) The creditors elect the trustee. 
A) The debtor appoints the trustee. 
B) The court clerk appoints the trustee. 
C) The district court judge appoints the trustee. 
D) The bankruptcy judge appoints the trustee. 
E) The creditors elect the trustee. E

Question 2

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

Accepted Answer

A) Bankruptcy estate 
B) Remainder 
C) Relinquished asset pool 
D) Residual estate 
E) Corpus 
A) Bankruptcy estate 
B) Remainder 
C) Relinquished asset pool 
D) Residual estate 
E) Corpus A

Question 3

An individual must complete credit counseling from a nonprofit budget and credit counseling agency to avoid having his bankruptcy petition dismissed.

Accepted Answer

A) True 
 B)False  True

Question 4

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

Accepted Answer

A) True 
 B)False

Question 5

Congress first addressed bankruptcy relief in the ________.

Accepted Answer

A) Insolvency Act of 1900 
B) Protection Act of 1934 
C) Securities Act of 1934 
D) Bankruptcy Act of 1898 
E) Bankruptcy Act of 1934 
A) Insolvency Act of 1900 
B) Protection Act of 1934 
C) Securities Act of 1934 
D) Bankruptcy Act of 1898 
E) Bankruptcy Act of 1934

Question 6

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged.What type of agreement will Juanita and Broderick make?

Accepted Answer

A) An accord and compromise 
B) A settlement 
C) A reaffirmation agreement 
D) An affirmance 
E) An acknowledgement agreement 
A) An accord and compromise 
B) A settlement 
C) A reaffirmation agreement 
D) An affirmance 
E) An acknowledgement agreement

Question 7

Which of the following are permitted to file under Chapter 11 reorganization?

Accepted Answer

A) Commodities brokers 
B) Stockbrokers 
C) Savings and loan companies 
D) Banks 
E) Corporate debtors 
A) Commodities brokers 
B) Stockbrokers 
C) Savings and loan companies 
D) Banks 
E) Corporate debtors

Question 8

Chapter 11 reorganization may be involuntary but not voluntary.

Accepted Answer

A) True 
 B)False

Question 9

A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the ________.

Accepted Answer

A) An automatic stay 
B) A stop order 
C) A semi-automatic dismissal 
D) A semi-discharge 
E) There is no such moratorium in a Chapter 7 proceeding 
A) An automatic stay 
B) A stop order 
C) A semi-automatic dismissal 
D) A semi-discharge 
E) There is no such moratorium in a Chapter 7 proceeding

Question 10

Which of the following is false regarding Chapter 12 of the bankruptcy code?

Accepted Answer

A) At least 50 percent of the family farmer's debt must be farm-related. 
B) The debt must be under a certain debt cap. 
C) A family farmer under Chapter 12 must have regular annual income. 
D) The family farmer's gross income must be at least 50 percent farm-dependent. 
E) Congress modeled Chapter 12 after Chapter 7 relief. 
A) At least 50 percent of the family farmer's debt must be farm-related. 
B) The debt must be under a certain debt cap. 
C) A family farmer under Chapter 12 must have regular annual income. 
D) The family farmer's gross income must be at least 50 percent farm-dependent. 
E) Congress modeled Chapter 12 after Chapter 7 relief.

Question 11

What if a creditor continues to engage in legal action against a debtor when an automatic stay is in effect?

Accepted Answer

A) The creditor forfeits all claims against the defendant. 
B) The debtor can recover damages,costs,attorney fees,and even possibly punitive damages. 
C) The creditor can continue with repossession proceedings but not with garnishment. 
D) The creditor can continue as long as the creditor can prove that the legal action was underway before the stay went into effect. 
E) The debtor must ask the court to reinstate the stay and to issue an injunction against the creditor. 
A) The creditor forfeits all claims against the defendant. 
B) The debtor can recover damages,costs,attorney fees,and even possibly punitive damages. 
C) The creditor can continue with repossession proceedings but not with garnishment. 
D) The creditor can continue as long as the creditor can prove that the legal action was underway before the stay went into effect. 
E) The debtor must ask the court to reinstate the stay and to issue an injunction against the creditor.

Question 12

Which of the following occurs when a debtor turns over all assets to a trustee?

Accepted Answer

A) Reorganization 
B) Acknowledgment 
C) Liquidation 
D) Avoidance 
E) Reformation 
A) Reorganization 
B) Acknowledgment 
C) Liquidation 
D) Avoidance 
E) Reformation

Question 13

Denise,who has several credit cards and lots of unsecured debt,cannot make her payments but does not want to file for bankruptcy protection.She knows that you are taking business law and asks you whether she can be forced into Chapter 7 bankruptcy and,if so,under what circumstances.What would you tell her?

Accepted Answer

She should be informed that if she has 1

Question 14

When the debtor agrees to pay a debt even though it could be discharged,it is referred to as which of the following?

Accepted Answer

A) A settlement 
B) An affirmance 
C) A reaffirmation agreement 
D) An acknowledgement agreement 
E) An accord and compromise 
A) A settlement 
B) An affirmance 
C) A reaffirmation agreement 
D) An acknowledgement agreement 
E) An accord and compromise

Question 15

A meeting of all creditors listed in the Chapter 7 required schedules for liquidation is referred to as which of the following?

Accepted Answer

A) A counseling meeting 
B) A creditors' meeting 
C) A control meeting 
D) A debt meeting 
E) An enforcement meeting 
A) A counseling meeting 
B) A creditors' meeting 
C) A control meeting 
D) A debt meeting 
E) An enforcement meeting

Question 16

In bankruptcy,debtors who cannot pay their debts in a timely fashion are referred to as which of the following?

Accepted Answer

A) Statutory debtors 
B) Failed transactors 
C) Insolvent debtors 
D) Foreclosed debtors 
E) Acknowledged transactors 
A) Statutory debtors 
B) Failed transactors 
C) Insolvent debtors 
D) Foreclosed debtors 
E) Acknowledged transactors

Question 17

What is the last of the basic steps of a bankruptcy proceeding?

Accepted Answer

A) The granting of an automatic stay 
B) A determination on whether an order of relief should be granted 
C) The creditors meet with the debtor 
D) Discharging debts 
E) The petition for the prompt repayment of secured creditor claims 
A) The granting of an automatic stay 
B) A determination on whether an order of relief should be granted 
C) The creditors meet with the debtor 
D) Discharging debts 
E) The petition for the prompt repayment of secured creditor claims

Question 18

Which of the following is false regarding provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

Accepted Answer

A) Under the act,if a party completes a Chapter 7 bankruptcy,the party is not permitted to seek a Chapter 7 bankruptcy again for 180 days. 
B) Under the act,an individual may not generally be considered a debtor unless within 180 days prior to filing,the debtor receives credit counseling from a nonprofit budget and credit counseling agency. 
C) Under the act,if a party completes a Chapter 7 bankruptcy,the party is not permitted to seek a Chapter 7 bankruptcy again for eight years. 
D) Under the act,if a previous bankruptcy was completed rather than dismissed,the individual is generally permitted to file for bankruptcy again. 
E) Under the act,if an individual was a debtor in a bankruptcy case that was dismissed within 180 days of the current case,the individual is generally not eligible to be a debtor under Chapters 7,11,or 13. 
A) Under the act,if a party completes a Chapter 7 bankruptcy,the party is not permitted to seek a Chapter 7 bankruptcy again for 180 days. 
B) Under the act,an individual may not generally be considered a debtor unless within 180 days prior to filing,the debtor receives credit counseling from a nonprofit budget and credit counseling agency. 
C) Under the act,if a party completes a Chapter 7 bankruptcy,the party is not permitted to seek a Chapter 7 bankruptcy again for eight years. 
D) Under the act,if a previous bankruptcy was completed rather than dismissed,the individual is generally permitted to file for bankruptcy again. 
E) Under the act,if an individual was a debtor in a bankruptcy case that was dismissed within 180 days of the current case,the individual is generally not eligible to be a debtor under Chapters 7,11,or 13.

Question 19

What is the first action the court takes after a petition for bankruptcy is filed?

Accepted Answer

A) A determination on whether an order of relief should be granted 
B) Discharging debts 
C) The granting of an automatic stay 
D) Ordering a creditor meeting 
E) The creation of a payment plan 
A) A determination on whether an order of relief should be granted 
B) Discharging debts 
C) The granting of an automatic stay 
D) Ordering a creditor meeting 
E) The creation of a payment plan

Question 20

Which test may allow a court to presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

Accepted Answer

A) The means test 
B) The median test 
C) The liquidation test 
D) The assets test 
E) The bankruptcy test 
A) The means test 
B) The median test 
C) The liquidation test 
D) The assets test 
E) The bankruptcy test

Exam 32: Bankruptcy and Reorganization

How is a determination made regarding the identity of the trustee in a Chapter 7 proceeding?

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

An individual must complete credit counseling from a nonprofit budget and credit counseling agency to avoid having his bankruptcy petition dismissed.

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

Congress first addressed bankruptcy relief in the ________.

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged.What type of agreement will Juanita and Broderick make?

Which of the following are permitted to file under Chapter 11 reorganization?

Chapter 11 reorganization may be involuntary but not voluntary.

A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the ________.

Which of the following is false regarding Chapter 12 of the bankruptcy code?

What if a creditor continues to engage in legal action against a debtor when an automatic stay is in effect?

Which of the following occurs when a debtor turns over all assets to a trustee?

When the debtor agrees to pay a debt even though it could be discharged,it is referred to as which of the following?

A meeting of all creditors listed in the Chapter 7 required schedules for liquidation is referred to as which of the following?

In bankruptcy,debtors who cannot pay their debts in a timely fashion are referred to as which of the following?

What is the last of the basic steps of a bankruptcy proceeding?

Which of the following is false regarding provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

What is the first action the court takes after a petition for bankruptcy is filed?

Which test may allow a court to presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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