Exam 25: Bankruptcy

Shale Oil, Inc., files a petition in bankruptcy for relief through a reorganization and assumes the role of a debtor in possession. In this role, Shale Oil is simi?lar to

The means test forces more people to file for Chapter 7 bankruptcy rather than gave their debts discharged under Chapter 13.

A Chapter 11 reorganization plan must provide for payment of tax claims over a five-year period.

In a repayment plan case, the plan must provide for payment of all obligations in full, not for a lesser amount.

For individual debtors, the plan in a reorganization case must be completed before discharge will be granted.

Child-support debts will be suspended by a voluntary bankruptcy filing.

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

Ed is a debtor. Financial Loans, Inc., and the government are Ed's credi?tors. For these parties, a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a petition by

The right to petition for bankruptcy relief under federal law may be a necessary evil in our capitalistic society.

On the entry of an order for relief in a Chapter 11 case, the creditors generally take over the operation of the debtor's business.

Bobby has fifteen creditors. To force Bobby into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least

In most states, state law determines the amount of a debtor's property that is exempt from dis?tribution on bankruptcy.

Thirty-one days before filing a petition in bankruptcy, Gavin transfers prop?erty and makes payments that favor one creditor over another. These are

Fact Pattern 25-1 Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check, knowing that she had insufficient funds in her account to cover the amount. A week later, Damian files a petition in bankruptcy for relief through a liquidation. -Refer to Fact Pattern 25-1. Regarding the sale of the cycle, the bankruptcy trustee can

Norma Jean files for Chapter 7 bankruptcy. She turns her assets over to Addie, who sells the assets and then distributes the proceeds to Norma Jean's creditors. Addie is a

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

A petition for a discharge in bankruptcy under Chapter 13 may be filed by

To adjust debt and institute a repayment plan, Bianca-who is not a corpo?ration, a partnership, or a family farmer or fisherman-may file a peti?tion in bankruptcy for relief through

Sheryl files a petition in bankruptcy. Sheryl's non-dischargeable debts include

In order of priority, the claims of all unsecured creditors in a class must be satisfied before any re?maining amounts can be distributed to the next class.