Question 1

Esmeralda is a debtor in a Chapter 7 bankruptcy proceeding.Which of the following is not a duty of Esmeralda under Chapter 7?

Accepted Answer

A)  To undergo credit counseling with an approved agency before filing. 
B)  To provide a repayment schedule for the debt owed to each creditor listed on the creditor list. 
C)  To provide a list of all her assets and debts. 
D)  To provide a schedule of all her income and expenditures.

Question 2

Which of the following statements concerning a Chapter 11 reorganization plan is true?

Accepted Answer

A)  A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan. 
B)  A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair. 
C)  Only the bankruptcy court has the authority to confirm or reject the reorganization plan. Creditors do not have a right to vote on the plan. 
D)  A reorganization plan binds only the debtor and not the creditors.

Question 3

Karen has filed for bankruptcy under Chapter 13.Who can file a plan of payment,who has the authority to confirm or reject a plan of payment,and what factors will be considered when deciding whether to approve a repayment plan?

Accepted Answer

The answer of Karen has filed for bankruptcy under Chapter...

Question 4

A financing statement,once filed,is effective for six years,but at the end of that period the statement will expire,leaving the secured party unprotected.

Accepted Answer

A) True 
 B)False

Question 5

Marteen,Inc.sold several wood-working machines to Crown Doors,taking a security interest in the machines.Crown defaulted on the loan.Marteen repossessed the machines.Marteen would like to retain the machines to use as models.Which of the following statements is correct?

Accepted Answer

A)  Marteen must notify the debtor that it intends to retain the machines and give Crown 20 days to object. 
B)  By taking possession, Marteen automatically foreclosed on the collateral. Marteen has valid title and need do nothing else. 
C)  Since the machines are equipment, Marteen cannot retain them. Marteen must dispose of the collateral in a commercially reasonable manner. 
D)  Marteen can retain the machines but must pay Crown the surplus, the difference between the fair market value of the machine and the amount of the debt.

Exam 14: Secured Transactions and Bankruptcy

Esmeralda is a debtor in a Chapter 7 bankruptcy proceeding.Which of the following is not a duty of Esmeralda under Chapter 7?

Which of the following statements concerning a Chapter 11 reorganization plan is true?

Karen has filed for bankruptcy under Chapter 13.Who can file a plan of payment,who has the authority to confirm or reject a plan of payment,and what factors will be considered when deciding whether to approve a repayment plan?

A financing statement,once filed,is effective for six years,but at the end of that period the statement will expire,leaving the secured party unprotected.

Marteen,Inc.sold several wood-working machines to Crown Doors,taking a security interest in the machines.Crown defaulted on the loan.Marteen repossessed the machines.Marteen would like to retain the machines to use as models.Which of the following statements is correct?