Question 1

In a Chapter 7 bankruptcy, on a finding that the use of Chapter 7 would constitute substantial abuse, the court is most likely to

Accepted Answer

A)  extend the time for the debtor's payment of overdue debts.
B)  allow a creditor to collect a previous judgment on a disputed debt.
C)  force a creditor to obtain a new judgment on a claimed debt.
D)  dismiss the debtor's petition.E) B) and C)
F) B) and D)

Question 2

Under Chapter 7, a discharge is most likely to be denied if the debtor

Accepted Answer

A)  conceals property to hinder or delay a creditor.
B)  destroys records of the debtor's financial condition.
C)  fails to attend a required consumer education course.
D)  all of the choices.E) None of the above
F) A) and B)

Question 3

Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her property and reduces it to money for distribution. Zhen is

Accepted Answer

A)  a secured creditor.
B)  a bankruptcy court judge.
C)  a bankruptcy trustee.
D)  a debtor who filed jointly for bankruptcy under a single petition.E) A) and D)
F) B) and C)

Question 4

Under Chapter 13, all debts are dischargeable.

Accepted Answer

A) True 
 B)False

Question 5

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Accepted Answer

A)  the profit of the debtor's creditors.
B)  the income of other families in the same state.
C)  the wealth available to the debtor's peers.
D)  the debtor's expenses.E) C) and D)
F) A) and D)

Question 6

If a debtor's income falls below the median income in the area in which the debtor lives, bankruptcy abuse will be presumed.

Accepted Answer

A) True 
 B)False

Question 7

Under Chapter 11, soon after the entry of the order for relief

Accepted Answer

A)  any business debtor can choose to avoid creditors' committees.
B)  the debtor's creditors file a plan to distribute the debtor's assets.
C)  a creditors' committee of unsecured creditors is appointed.
D)  the debtor's assets are liquidated to pay tax claims.E) B) and C)
F) A) and B)

Question 8

Any person -including individuals, but not partnerships or corporations-may be a debtor under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 9

All bankruptcy proceedings are held in

Accepted Answer

A)  federal bankruptcy courts.
B)  state bankruptcy courts.
C)  special cross-jurisdictional debtors courts.
D)  local small-claims courts.E) A) and B)
F) B) and C)

Question 10

Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under Chapter 13 for relief through

Accepted Answer

A)  a liquidation.
B)  a reorganization.
C)  a repayment plan.
D)  an adjustment plan.E) B) and C)
F) A) and B)

Question 11

In a Chapter 7 proceeding, unsecured creditors' claims are subordinate to the claims of secured creditors.

Accepted Answer

A) True 
 B)False

Question 12

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Accepted Answer

A) True 
 B)False

Exam 31: Bankruptcy Law

Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her property and reduces it to money for distribution. Zhen is

Correct Answer
verified

In a Chapter 7 bankruptcy, on a finding that the use of Chapter 7 would constitute substantial abuse, the court is most likely to

Correct Answer
verified

Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under Chapter 13 for relief through

Correct Answer
verified

Any person -including individuals, but not partnerships or corporations-may be a debtor under Chapter 7.

Correct Answer
verified

Under Chapter 7, a discharge is most likely to be denied if the debtor

Correct Answer
verified

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Correct Answer
verified

In a Chapter 7 proceeding, unsecured creditors' claims are subordinate to the claims of secured creditors.

Correct Answer
verified

Under Chapter 11, soon after the entry of the order for relief

Correct Answer
verified

All bankruptcy proceedings are held in

Correct Answer
verified

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Correct Answer
verified

If a debtor's income falls below the median income in the area in which the debtor lives, bankruptcy abuse will be presumed.

Correct Answer
verified

Under Chapter 13, all debts are dischargeable.

Correct Answer
verified

Exam 31: Bankruptcy Law

Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her property and reduces it to money for distribution. Zhen is

Correct AnswerverifiedShow Answer

In a Chapter 7 bankruptcy, on a finding that the use of Chapter 7 would constitute substantial abuse, the court is most likely to

Correct AnswerverifiedShow Answer

Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under Chapter 13 for relief through

Correct AnswerverifiedShow Answer

Any person -including individuals, but not partnerships or corporations-may be a debtor under Chapter 7.

Correct AnswerverifiedShow Answer

Under Chapter 7, a discharge is most likely to be denied if the debtor

Correct AnswerverifiedShow Answer

The basic duty of a bankruptcy trustee in a Chapter 7 proceeding requires that the trustee be accountable for administering the debtor's estate.

Correct AnswerverifiedShow Answer

In a Chapter 7 proceeding, unsecured creditors' claims are subordinate to the claims of secured creditors.

Correct AnswerverifiedShow Answer

Under Chapter 11, soon after the entry of the order for relief

Correct AnswerverifiedShow Answer

All bankruptcy proceedings are held in

Correct AnswerverifiedShow Answer

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Correct AnswerverifiedShow Answer

If a debtor's income falls below the median income in the area in which the debtor lives, bankruptcy abuse will be presumed.

Correct AnswerverifiedShow Answer

Under Chapter 13, all debts are dischargeable.

Correct AnswerverifiedShow Answer

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