Question 1

Any creditor listed in the schedules filed by the debtor must file a proof of claim.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  collecting the property in a bankruptcy 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

An agreement to pay a debt discharged in bankruptcy is called a workout.

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 30-1B
In January,Jazz Dance Studio owes Kay,its musical director,$1,800 for cur?rent wages,receives $700 as a down payment for dance lessons from Lora,and pays a Music,Inc. ,a sheet music supplier,$1,500 of $3,000 owed.In February,the studio files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 30-1B.The highest priority with respect to payment of claims belongs to

Accepted Answer

A)  Kay and Music,Inc.
B)  Jazz Dance Studio.
C)  Lora.
D)  unnamed general creditors. A

Question 5

In a repayment plan case,after the debtor has completed all payments,the court grants a discharge of all debts provided for by the plan.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  domestic-support obligations.
B)  student loans if payment would impose undue hardship.
C)  unpaid loans to finance home repairs.
D)  unsecured credit-card debt.

Question 7

Before filing a petition bankruptcy,debtors must receive credit counseling from an approved non-profit agency.

Accepted Answer

A) True 
 B)False  True

Question 8

Fact Pattern 30-1B
In January,Jazz Dance Studio owes Kay,its musical director,$1,800 for cur?rent wages,receives $700 as a down payment for dance lessons from Lora,and pays a Music,Inc. ,a sheet music supplier,$1,500 of $3,000 owed.In February,the studio files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 30-1B.Based on the size of the studio's estate in bank?ruptcy,each of Jazz's creditors will get only 10 percent of their claims.Regarding the payment to Music,Inc. ,the trustee may

Accepted Answer

A)  not recover it because Music's claim has priority.
B)  not recover it unless Music is an in?sider.
C)  recover it as a fraudulent transfer.
D)  recover it as a voidable preference.

Question 9

Certain reorganization cases may be converted to repayment plan cases with the consent of the debtor.

Accepted Answer

A) True 
 B)False

Question 10

Lulu joins with other creditors to force McCoy,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Accepted Answer

A)  ensure that creditors will continue to lend to insolvent debtors.
B)  protect creditor assets from diminution in value.
C)  provide a fair means of distributing a debtor's assets.
D)  make all debtor property available for creditors.

Question 11

Eli agrees to pay a debt to Financial Credit,Inc. ,which is otherwise dis?chargeable in bankruptcy.This is

Accepted Answer

A)  a cram-down.
B)  a revocation.
C)  a reaffirmation.
D)  a workout.

Question 12

Gem Jewelers files a voluntary petition for bankruptcy.In listing its as?sets,Gem in?tentionally omits certain valuable stones.After Gem is granted a discharge,Hor d'Ouerve Catering,one of Gem's unsecured creditors whose claims were discharged,learns of the fraud.Hor d'Ouerve can

Accepted Answer

A)  do nothing.
B)  enforce its claim against Gem.
C)  file an involuntary petition for bankruptcy against Gem.
D)  take possession of the stones with or without a breach of the peace.

Question 13

A reorganization plain is a plan to conserve and administer the debtor's assets in the hope that all of the creditors will eventually be paid in full.

Accepted Answer

A) True 
 B)False

Question 14

Mac files a petition for a discharge in bankruptcy.Mac's failure to ap?pear at a meet?ing of the creditors listed in Mac's schedules may result in Mac being

Accepted Answer

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

Question 15

Certain debts are not dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 16

First State Bank is a secured party on a $5,000 loan to Geoff,who owns Happy Hours,a nightclub.When Geoff experiences financial difficulty,creditors other than First State Bank petition him into involuntary bankruptcy.The value of the secured collateral has substantially decreased in value.On its sale,the debt to First State Bank is reduced to $2,500.Geoff's estate consists of $100,000 in exempt assets and $2,000 in nonexempt assets.After the bankruptcy costs and back wages to Geoff's employees are paid,nothing is left for unsecured creditors.Geoff receives a discharge in bankruptcy.Later he decides to go back into business.By selling a few exempt assets and getting a small loan,he is able to buy the Idle Inn,a small,but profitable,restaurant.Geoff goes to First State Bank for the loan.The bank claims that the balance of its secured debt was not discharged in Geoff's bankruptcy.He signs an agreement to pay First State Bank the $2,500,and the bank makes a new unsecured loan to him.Is First State Bank correct that the balance of its secured debt was not discharged in bankruptcy? What is the legal effect of Geoff's agreement to pay the bank $2,500 after the discharge in bankruptcy?

Accepted Answer

A secured creditor is entitled to priority to the proceeds from the dis?posal of the secured collateral of the bankrupt debtor up to the amount of the debt owed.Should the proceeds not cover the secured debt,the secured party be?comes an unsecured creditor for the balance.Unless the debtor is denied a dis?charge in bankruptcy,all debts of the debtor are rendered void upon the grant?ing of the discharge.In this case,First State Bank is incor?rect.First State Bank became an unsecured creditor to the balance of $2,500 owed.Geoff's discharge in bankruptcy discharged his obligation to pay the debt.
The Bankruptcy Code restricts the legality of reaffirma?tions-agreements to pay debts discharged in bankruptcy.For these agree?ments to be binding,they must be executed before the discharge in bankruptcy is granted.All reaf?firmation agreements must be filed with the court.Unless the debtor (Geoff)is repre?sented by an attorney,court approval is required.The court will only approve the reaf?firmation if the agreement will not cause her a hardship and is in the best interests of Geoff.If Geoff is represented by an attor?ney,the attorney must file a declaration or affidavit stat?ing that Geoff was fully informed of the consequences,the agreement was voluntarily made,and the agreement does not impose a hardship on Geoff or her de?pendents.Geoff has a right to rescind this agreement.Because the reaffirma?tion agreement in this case was made after Geoff's discharge in bankruptcy,she is not le?gally obligated to pay the $2,500 debt previously discharged in bankruptcy.

Question 17

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.

Question 18

Nano Games Corporation's creditors agree to a workout with the firm.This is

Accepted Answer

A)  an agreement to pay a debt dischargeable in bankruptcy.
B)  an accountant's summary of a debtor's financial situation.
C)  a privately negotiated adjustment of creditor-debtor relations.
D)  a reorganization of corporate debts and debtors.

Question 19

Nikita operates a sole proprietorship,a corporation,and a partnership.Nikita wants to ob?tain relief for her individual debts and the debts of her corporation and partnership.For each of these,Nikita 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.

Question 20

Zeke files a petition in bankruptcy for relief through an individual's repayment plan.Zeke's plan must provide for

Accepted Answer

A)  the turnover of his future income to the trustee.
B)  his attendance at a credit-counseling briefing.
C)  adequate means for the petition's execution.

Exam 30: A: Bankruptcy Law

Any creditor listed in the schedules filed by the debtor must file a proof of claim.

Correct Answer
verified

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

Correct Answer
verified

An agreement to pay a debt discharged in bankruptcy is called a workout.

Correct Answer
verified

Correct Answer
verified
A

In a repayment plan case,after the debtor has completed all payments,the court grants a discharge of all debts provided for by the plan.

Correct Answer
verified

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

Correct Answer
verified

Before filing a petition bankruptcy,debtors must receive credit counseling from an approved non-profit agency.

Correct Answer
verified
True

Correct Answer
verified

Certain reorganization cases may be converted to repayment plan cases with the consent of the debtor.

Correct Answer
verified

Lulu joins with other creditors to force McCoy,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Correct Answer
verified

Eli agrees to pay a debt to Financial Credit,Inc. ,which is otherwise dis?chargeable in bankruptcy.This is

Correct Answer
verified

Gem Jewelers files a voluntary petition for bankruptcy.In listing its as?sets,Gem in?tentionally omits certain valuable stones.After Gem is granted a discharge,Hor d'Ouerve Catering,one of Gem's unsecured creditors whose claims were discharged,learns of the fraud.Hor d'Ouerve can

Correct Answer
verified

A reorganization plain is a plan to conserve and administer the debtor's assets in the hope that all of the creditors will eventually be paid in full.

Correct Answer
verified

Mac files a petition for a discharge in bankruptcy.Mac's failure to ap?pear at a meet?ing of the creditors listed in Mac's schedules may result in Mac being

Correct Answer
verified

Certain debts are not dischargeable in bankruptcy.

Correct Answer
verified

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

Correct Answer
verified

Nano Games Corporation's creditors agree to a workout with the firm.This is

Correct Answer
verified

Nikita operates a sole proprietorship,a corporation,and a partnership.Nikita wants to ob?tain relief for her individual debts and the debts of her corporation and partnership.For each of these,Nikita may file a petition in bankruptcy for relief through

Correct Answer
verified

Zeke files a petition in bankruptcy for relief through an individual's repayment plan.Zeke's plan must provide for

Correct Answer
verified

Exam 30: A: Bankruptcy Law

Any creditor listed in the schedules filed by the debtor must file a proof of claim.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An agreement to pay a debt discharged in bankruptcy is called a workout.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

In a repayment plan case,after the debtor has completed all payments,the court grants a discharge of all debts provided for by the plan.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Before filing a petition bankruptcy,debtors must receive credit counseling from an approved non-profit agency.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

Certain reorganization cases may be converted to repayment plan cases with the consent of the debtor.

Correct AnswerverifiedShow Answer

Lulu joins with other creditors to force McCoy,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Correct AnswerverifiedShow Answer

Eli agrees to pay a debt to Financial Credit,Inc. ,which is otherwise dis?chargeable in bankruptcy.This is

Correct AnswerverifiedShow Answer

Gem Jewelers files a voluntary petition for bankruptcy.In listing its as?sets,Gem in?tentionally omits certain valuable stones.After Gem is granted a discharge,Hor d'Ouerve Catering,one of Gem's unsecured creditors whose claims were discharged,learns of the fraud.Hor d'Ouerve can

Correct AnswerverifiedShow Answer

A reorganization plain is a plan to conserve and administer the debtor's assets in the hope that all of the creditors will eventually be paid in full.

Correct AnswerverifiedShow Answer

Mac files a petition for a discharge in bankruptcy.Mac's failure to ap?pear at a meet?ing of the creditors listed in Mac's schedules may result in Mac being

Correct AnswerverifiedShow Answer

Certain debts are not dischargeable in bankruptcy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Nano Games Corporation's creditors agree to a workout with the firm.This is

Correct AnswerverifiedShow Answer

Nikita operates a sole proprietorship,a corporation,and a partnership.Nikita wants to ob?tain relief for her individual debts and the debts of her corporation and partnership.For each of these,Nikita may file a petition in bankruptcy for relief through

Correct AnswerverifiedShow Answer

Zeke files a petition in bankruptcy for relief through an individual's repayment plan.Zeke's plan must provide for

Correct AnswerverifiedShow Answer

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A

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True

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