Question 1

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a term used in bankruptcy for debtors who cannot pay their debts in a timely fashion?

Accepted Answer

A)   Statutory debtors
B)   Insolvent debtors
C)   Failed transactors
D)   Foreclosed debtors
E)   Acknowledged transactorsF) None of the above
G) A) and D)

Question 3

Which of the following is called straight bankruptcy?

Accepted Answer

A)   Liquidation
B)   Reorganization
C)   Reformation
D)   Acknowledgment
E)   AvoidanceF) B) and E)
G) C) and D)

Question 4

Denise,who has several credit cards and lots of unsecured debt,cannot make her payments but does not want to file for bankruptcy protection.She knows that you are taking business law and asks you whether she can be forced into Chapter 7 bankruptcy and,if so,under what circumstances.What would you tell her?

Accepted Answer

She should be informed that if she has 1...

Question 5

What are the two general goals of bankruptcy laws as set forth in the text?

Accepted Answer

First,bankruptcy laws provide protection to creditors.Bankruptcy laws ensure that creditors competing for a debtor's assets are treated equally and receive a fair share of the debtor's assets.Second,bankruptcy laws provide opportunities for debtors to gain a fresh financial start.

Question 6

Which of the following is true regarding who may receive a discharge of debt under Chapter 7 of the bankruptcy code?

Accepted Answer

A)   Individuals, partnerships, and corporations may all receive a discharge.
B)   Partnerships and individuals may receive a discharge, but corporations may not.
C)   Corporations and individuals may receive a discharge, but partnerships may not.
D)   Individuals may receive a discharge, but partnerships and corporations may not.
E)   Corporations may receive a discharge, but individuals and partnerships may not.F) A) and B)
G) A) and C)

Question 7

Which of the following chapters is used for a sale of a debtor's assets by a trustee and the distribution of money to creditors?

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 13
E)   Chapter 15F) C) and D)
G) A) and B)

Question 8

A[n] ______ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Accepted Answer

A)   Discharge
B)   Release
C)   Grant of immunity
D)   Relinquishment
E)   AbandonmentF) A) and C)
G) B) and C) A

Question 9

Which of the following is true regarding the number of creditors who must vote to accept a reorganization plan under a Chapter 11 proceeding?

Accepted Answer

A)   For the plan to be accepted, one-third of the class of unsecured creditors must vote to approve it.
B)   For the plan to be accepted, one-half of the class of secured creditors must vote to approve it.
C)   For the plan to be accepted, two-thirds of the creditors of each class of creditors must vote to approve it.
D)   For the plan to be accepted, three-fourth of the creditors of each class of creditors must vote to approve it.
E)   For the plan to be accepted, one-fourth of the class of unsecured creditors must vote to approve it.F) A) and E)
G) A) and D)

Question 10

For how many days prior to the filing of a Chapter 7 bankruptcy petition is a debtor assumed insolvent?

Accepted Answer

A)   120
B)   60
C)   90
D)   45
E)   30F) A) and D)
G) None of the above

Question 11

Which of the following is false regarding bankruptcy proceedings in Spain?

Accepted Answer

A)   In order to be effective, an arrangement representing a proposed settlement between the debtor and creditors must be approved by creditors representing at least 20 percent of the debtor's liabilities and by the judge.
B)   A failure to obtain the necessary approval of a proposed settlement between the debtor and creditors may result in the debtor's liquidation.
C)   Bankruptcy proceedings start with a finding of insolvency.
D)   Insolvency means that the business has failed to meet at least some financial obligations for at least six months.
E)   The bankruptcy filing may be done voluntarily by the debtor company, or it may be done involuntarily by the debtor's creditors in an enforced bankruptcy.F) C) and D)
G) B) and D)

Question 12

Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Accepted Answer

A)   The trustee takes possession of the debtor's property and has it appraised.
B)   If someone else holds the debtor's property, the trustee has the power to require the person to return that properly.
C)   The trustee examines the debtor's records but may not even temporarily take over the debtor's business.
D)   The trustee can initiate collection actions but must also defend against creditor actions.
E)   The trustee separates the exempt property from the nonexempt property and sells the nonexempt property.F) None of the above
G) A) and B)

Question 13

Which of the following is an individual who takes over administration of the debtor's estate?

Accepted Answer

A)   Administrator
B)   Aligner
C)   Organizer
D)   Reformer
E)   TrusteeF) A) and C)
G) A) and E) E

Question 14

Once the petition is filed,which of the following forms Sidney's bankruptcy estate?

Accepted Answer

A)   All her prepetition assets.
B)   The exempt assets only.
C)   The nonexempt assets only.
D)   The personal goods only.
E)   The real estate only.F) None of the above
G) C) and E)

Question 15

Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Accepted Answer

A)   An order of relief
B)   A stay enforcement order
C)   An approval order
D)   A liquidation order
E)   A documentation orderF) D) and E)
G) B) and E)

Question 16

Chapter 11 reorganization may be involuntary but not voluntary.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following,if any,is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy?

Accepted Answer

A)   A stop order
B)   An automatic stay
C)   A semi-automatic dismissal
D)   A semi-discharge
E)   There is no such moratorium in a Chapter 7 proceedingF) A) and B)
G) C) and D)

Question 18

Which of the following was the result in Margaret Kawaauhau v.Paul W.Geiger,the case in the text in which the plaintiff claimed that the defending doctor,who had no malpractice insurance,could not discharge in bankruptcy a judgment for malpractice on the basis that he deliberately chose less effective treatment to cut costs while knowing that he was providing substandard care.

Accepted Answer

A)   That the defendant could not discharge the judgment because he was negligent.
B)   That the defendant could not discharge the judgment because he was reckless.
C)   That as a matter of public policy, the defendant could not discharge the judgment because he failed to carry malpractice insurance.
D)   That the defendant could discharge the judgment because as a matter of public policy, all malpractice judgments may be discharged.
E)   That the defendant could discharge the judgment because he did not intend to cause injury.F) A) and B)
G) A) and E)

Question 19

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 14
E)   Chapter 15F) B) and E)
G) B) and D)

Question 20

If Mona convinces the judge that the creditors have filed the involuntary bankruptcy frivolously,which of the following is true regarding what amounts,if any,the court may force the creditors to pay?

Accepted Answer

A)   The court may award attorney costs, fees of the debtor, and punitive damages.
B)   The court may award attorney costs and fees of the debtor, but not punitive damages.
C)   The court may award fees of the debtor, but not attorney costs or punitive damages.
D)   The court may award punitive damages, but not attorney costs or fees of the debtor.
E)   The judge may dismiss the involuntary bankruptcy petition, but no other relief is available.F) B) and D)
G) A) and E)

Exam 32: Bankruptcy and Reorganization

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Correct Answer
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Which of the following is a term used in bankruptcy for debtors who cannot pay their debts in a timely fashion?

Correct Answer
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Which of the following is called straight bankruptcy?

Correct Answer
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Correct Answer
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She should be informed that if she has 1...
View Answer

What are the two general goals of bankruptcy laws as set forth in the text?

Which of the following is true regarding who may receive a discharge of debt under Chapter 7 of the bankruptcy code?

Correct Answer
verified

Which of the following chapters is used for a sale of a debtor's assets by a trustee and the distribution of money to creditors?

Correct Answer
verified

A[n] ______ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Correct Answer
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A

Which of the following is true regarding the number of creditors who must vote to accept a reorganization plan under a Chapter 11 proceeding?

Correct Answer
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For how many days prior to the filing of a Chapter 7 bankruptcy petition is a debtor assumed insolvent?

Correct Answer
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Which of the following is false regarding bankruptcy proceedings in Spain?

Correct Answer
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Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Correct Answer
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Which of the following is an individual who takes over administration of the debtor's estate?

Correct Answer
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E

Once the petition is filed,which of the following forms Sidney's bankruptcy estate?

Correct Answer
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Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Correct Answer
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Chapter 11 reorganization may be involuntary but not voluntary.

Correct Answer
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Which of the following,if any,is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy?

Correct Answer
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Correct Answer
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Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Correct Answer
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If Mona convinces the judge that the creditors have filed the involuntary bankruptcy frivolously,which of the following is true regarding what amounts,if any,the court may force the creditors to pay?

Correct Answer
verified

Exam 32: Bankruptcy and Reorganization

If a debtor fails to appear at the Chapter 7 creditors' meeting,the court may refuse to grant the bankruptcy.

Correct AnswerverifiedShow Answer

Which of the following is a term used in bankruptcy for debtors who cannot pay their debts in a timely fashion?

Correct AnswerverifiedShow Answer

Which of the following is called straight bankruptcy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShe should be informed that if she has 1...View AnswerShow Answer

What are the two general goals of bankruptcy laws as set forth in the text?

Which of the following is true regarding who may receive a discharge of debt under Chapter 7 of the bankruptcy code?

Correct AnswerverifiedShow Answer

Which of the following chapters is used for a sale of a debtor's assets by a trustee and the distribution of money to creditors?

Correct AnswerverifiedShow Answer

A[n] ______ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Correct AnswerverifiedA

Which of the following is true regarding the number of creditors who must vote to accept a reorganization plan under a Chapter 11 proceeding?

Correct AnswerverifiedShow Answer

For how many days prior to the filing of a Chapter 7 bankruptcy petition is a debtor assumed insolvent?

Correct AnswerverifiedShow Answer

Which of the following is false regarding bankruptcy proceedings in Spain?

Correct AnswerverifiedShow Answer

Which of the following is false regarding rights of a trustee in a Chapter 7 bankruptcy?

Correct AnswerverifiedShow Answer

Which of the following is an individual who takes over administration of the debtor's estate?

Correct AnswerverifiedE

Once the petition is filed,which of the following forms Sidney's bankruptcy estate?

Correct AnswerverifiedShow Answer

Which of the following means that bankruptcy relief is ordered and that the bankruptcy proceedings can continue?

Correct AnswerverifiedShow Answer

Chapter 11 reorganization may be involuntary but not voluntary.

Correct AnswerverifiedShow Answer

Which of the following,if any,is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Correct AnswerverifiedShow Answer

If Mona convinces the judge that the creditors have filed the involuntary bankruptcy frivolously,which of the following is true regarding what amounts,if any,the court may force the creditors to pay?

Correct AnswerverifiedShow Answer

Correct Answer
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She should be informed that if she has 1...
View Answer

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A

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E

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