Question 1

Payments under a Chapter 13 plan must be completed within three to five years,depending on the debtor's family income.

Accepted Answer

A) True 
 B)False

Question 2

Daniel is a trustee for a federal bankruptcy court.Daniel's duties include​

Accepted Answer

A)  collecting the debtor's available estate.
B)  establishing priority for the payment of unsecured creditors.
C)  operating a debtor's business to obtain maximum profit for creditors.
D)  submitting to an examination under oath by the creditors.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Recording a mortgage perfects the lender's security interest in the mortgaged property.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  owns a business that employs fewer than ten people.
B)  is a farmer.
C)  has a medical condition.
D)  has to pay child support.

Question 6

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy'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.

Question 7

The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies.

Accepted Answer

A) True 
 B)False

Question 8

A defaulting debtor cannot redeem nonexempt property before a sale under a writ of execution.

Accepted Answer

A) True 
 B)False

Question 9

Teri files a petition for bankruptcy.Her creditors must file with the court their proof of claims against her assets within​

Accepted Answer

A)  fifteen days of the order for relief.
B)  thirty days of the filing of the petition.
C)  sixty days of the automatic stay.
D)  ninety days of the creditors' meeting.

Question 10

Donna goes through an involuntary bankruptcy proceeding.An involuntary bankruptcy occurs when​

Accepted Answer

A)  a debtor files forms designated for the purpose in a bankruptcy court.
B)  a debtor is unable to pay his or her debts as they come due.
C)  a debtor's creditors force the debtor into bankruptcy proceedings.
D)  a debtor's debts exceed the fair market value of his or her assets.

Question 11

Some student loans are dischargeable in a Chapter 7 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 12

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid​

Accepted Answer

A)  under no circumstances.
B)  if Go extended credit for all or part of the purchase price of the car.
C)  if any of the loan for the car remains unpaid,regardless of the creditor.
D)  if her other creditors do not object.

Question 13

A workout-a privately negotiated adjustment of creditor-debtor relations-is more expensive and takes longer than a reorganization proceeding.

Accepted Answer

A) True 
 B)False

Question 14

Matt files a petition for a discharge in bankruptcy.His failure to appear at a meeting of the creditors listed in his schedules may result in him being​

Accepted Answer

A)  denied a discharge of bankruptcy.
B)  fined.
C)  held in contempt.
D)  imprisoned.

Question 15

A debtor must be insolvent to file for bankruptcy relief.

Accepted Answer

A) True 
 B)False

Question 16

Ozzie 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​

Accepted Answer

A)  all debts provided for by the plan.
B)  money owed for services rendered.
C)  allowed claims not provided for by the plan.
D)  credit-card debt.

Question 17

Robin's home is in a state that has a $30,000 homestead exemption.Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company.Robin's home is sold at auction for $80,000.From the proceeds,Suburban may recover​

Accepted Answer

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

Question 18

A preference occurs when a debtor transfers property or money favoring one creditor over others.

Accepted Answer

A) True 
 B)False

Question 19

A short sale is a sale of only part of the whole property subject to a mortgage.

Accepted Answer

A) True 
 B)False

Question 20

Rico borrows $110,000 from Sterling 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​
Foreclosure.

Accepted Answer

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

Exam 15: Creditor Debtor Relations and Bankruptcy

Donna goes through an involuntary bankruptcy proceeding.An involuntary bankruptcy occurs when​

Correct AnswerverifiedShow Answer

The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies.

Correct AnswerverifiedShow Answer

A debtor must be insolvent to file for bankruptcy relief.

Correct AnswerverifiedShow Answer

Payments under a Chapter 13 plan must be completed within three to five years,depending on the debtor's family income.

Correct AnswerverifiedShow Answer

A defaulting debtor cannot redeem nonexempt property before a sale under a writ of execution.

Correct AnswerverifiedShow Answer

A workout-a privately negotiated adjustment of creditor-debtor relations-is more expensive and takes longer than a reorganization proceeding.

Correct AnswerverifiedShow Answer

A preference occurs when a debtor transfers property or money favoring one creditor over others.

Correct AnswerverifiedShow Answer

Teri files a petition for bankruptcy.Her creditors must file with the court their proof of claims against her assets within​

Correct AnswerverifiedShow Answer

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Some student loans are dischargeable in a Chapter 7 bankruptcy.

Correct AnswerverifiedShow Answer

Rico borrows $110,000 from Sterling 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​ Foreclosure.

Correct AnswerverifiedShow Answer

Robin's home is in a state that has a $30,000 homestead exemption.Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company.Robin's home is sold at auction for $80,000.From the proceeds,Suburban may recover​

Correct AnswerverifiedShow Answer

Recording a mortgage perfects the lender's security interest in the mortgaged property.

Correct AnswerverifiedShow Answer

Daniel is a trustee for a federal bankruptcy court.Daniel's duties include​

Correct AnswerverifiedShow Answer

Ozzie 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​

Correct AnswerverifiedShow Answer

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy's reorganization plan must contain​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Matt files a petition for a discharge in bankruptcy.His failure to appear at a meeting of the creditors listed in his schedules may result in him being​

Correct AnswerverifiedShow Answer

A short sale is a sale of only part of the whole property subject to a mortgage.

Correct AnswerverifiedShow Answer

Donna goes through an involuntary bankruptcy proceeding.An involuntary bankruptcy occurs when

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Teri files a petition for bankruptcy.Her creditors must file with the court their proof of claims against her assets within

Correct Answer
verified

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Rico borrows $110,000 from Sterling 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 Foreclosure.

Correct Answer
verified

Robin's home is in a state that has a $30,000 homestead exemption.Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company.Robin's home is sold at auction for $80,000.From the proceeds,Suburban may recover

Correct Answer
verified

Correct Answer
verified

Daniel is a trustee for a federal bankruptcy court.Daniel's duties include

Correct Answer
verified

Ozzie 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

Correct Answer
verified

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy's reorganization plan must contain

Correct Answer
verified

Correct Answer
verified

Matt files a petition for a discharge in bankruptcy.His failure to appear at a meeting of the creditors listed in his schedules may result in him being

Correct Answer
verified

Correct Answer
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