Question 1

Which of the following does NOT fall under an exception to the automatic stay?

Accepted Answer

A)   The debtor was a debtor in a bankruptcy case dismissed within a year of the current bankruptcy case filing.
B)   Legal actions to determine paternity or collect child support.
C)   Legal actions to collect alimony payments.
D)   Secured creditors who do not have adequate protection under the stay.
E)   Creditors who are involved in repossession proceedings.F) B) and D)
G) A) and C)

Question 2

Once a voluntary liquidation proceeding under Chapter 7 is filed, the debtor's prepetition assets form the ________.

Accepted Answer

A)   Corpus
B)   Remainder
C)   Residual estate
D)   Bankruptcy estate
E)   Relinquished asset poolF) A) and E)
G) A) and B)

Question 3

Which of the following tests might a court use to determine whether or not to dismiss a debtor's bankruptcy petition?

Accepted Answer

A)   The means test
B)   The assets test
C)   The median test
D)   The liquidation test
E)   The bankruptcy testF) A) and E)
G) B) and D)

Question 4

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) B) and D)
G) A) and D)

Question 5

Legal actions against a debtor can continue after a bankruptcy petition is filed.

Accepted Answer

A) True 
 B)False

Question 6

Liquidation may be voluntary, but not involuntary, under Chapter 7

Accepted Answer

A) True 
 B)False

Question 7

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Accepted Answer

A) True 
 B)False

Question 8

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged. What type of agreement will Juanita and Broderick make?

Accepted Answer

A)   A settlement
B)   A reaffirmation agreement
C)   An acknowledgement agreement
D)   An accord and compromise
E)   An affirmanceF) C) and D)
G) B) and D)

Question 9

Emily's bank is trying to repossess her car after she filed for Chapter 7 bankruptcy. The bank is in error because once Emily files bankruptcy, a(n)  ________ is issued.

Accepted Answer

A)   stop order
B)   automatic stay
C)   dismissal of debt
D)   discharge
E)   stay of reliefF) All of the above
G) A) and D)

Question 10

Under a Chapter 7 liquidation proceeding, which of the following would be eligible for this type of bankruptcy?

Accepted Answer

A)   Savings and loan
B)   Insurance company
C)   Banks
D)   Corporations
E)   Credit unionF) B) and C)
G) C) and D)

Question 11

The city of Normandy is in need of need of adjustment of debts to become solvent again, which of the following Chapters provide that opportunity in bankruptcy?

Accepted Answer

A)   Chapter 7
B)   Chapter 9
C)   Chapter 11
D)   Chapter 13
E)   Chapter 15F) All of the above
G) D) and E)

Question 12

Which of the following is NOT part of the basic set of procedures for bankruptcy cases?

Accepted Answer

A)   The petition for the prompt repayment of secured creditor claims
B)   The granting of an automatic stay
C)   A determination on whether an order of relief should be granted
D)   The creditors meet with the debtor
E)   Discharging debtsF) A) and B)
G) A) and C)

Question 13

After filing a voluntary Chapter 7 bankruptcy petition, assets that a debtor gains are generally not part of the bankruptcy estate unless they fall under an exemption.

Accepted Answer

A) True 
 B)False

Question 14

Garland files for Chapter 7 bankruptcy and an automatic stay has been issued. The court has granted an order of relief. A creditor's meeting is scheduled but Garland does not attend. At this point what is the court's option?

Accepted Answer

A)   The meeting must be rescheduled.
B)   The trustee will allocate the debtor's assets.
C)   The court will send a sheriff to bring Garland to the meeting.
D)   The court may refuse to grant Garland's bankruptcy.
E)   Garland will be held in contempt of court and find not less than $5,000.F) B) and C)
G) C) and D)

Question 15

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

Accepted Answer

First, bankruptcy laws provide protectio...

Question 16

To initiate a bankruptcy case, what is the first step?

Accepted Answer

A)   creditors send notice via mail to debtors that they are initiating a suit.
B)   The granting of an automatic stay
C)   A filing of a petition
D)   Creditors meet with the debtor to assess which party has priority in filings
E)   Debts are dischargedF) C) and D)
G) C) and E)

Question 17

In which of the following did Congress make comprehensive changes to bankruptcy law?

Accepted Answer

A)   The Bankruptcy Trust, Reconciliation, and Remedial Amendments of 2000
B)   The Bankruptcy Fraud Protection Act of 2007
C)   The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
D)   The Bankruptcy Fraud and Consumer Shield Act of 2006
E)   The Insolvency Protection Amendments of 2006F) A) and D)
G) A) and E)

Question 18

The Bankruptcy Code is contained within which of the following titles of the United States Code?

Accepted Answer

A)   Title 9
B)   Title 11
C)   Title 7
D)   Title 15
E)   Title 34F) C) and D)
G) B) and C)

Question 19

Galloway Family Farms has been in business for over 70 years. It has fallen on hard times however. If the Galloway Family Farms wanted to adjust their debts, under what Chapter would they file?

Accepted Answer

A)   7
B)   8
C)   9
D)   11
E)   12F) B) and D)
G) A) and D)

Question 20

Which statement is true regarding the type of law that is relevant to bankruptcy claims?

Accepted Answer

A)   Only federal statutory law is relevant.
B)   Only state statutory law is relevant.
C)   While bankruptcy law is state law, federal law applies to bankruptcy cases in the sense that federal laws regarding debtor's property and creditor claims may apply.
D)   While bankruptcy law is federal law, state law applies to bankruptcy cases in the sense that state laws regarding debtor's property and creditor claims may apply.
E)   Only federal common law is relevant to bankruptcy claims.F) A) and D)
G) A) and C)

Exam 32: Bankruptcy and Reorganization

Legal actions against a debtor can continue after a bankruptcy petition is filed.

Correct AnswerverifiedShow Answer

Which of the following tests might a court use to determine whether or not to dismiss a debtor's bankruptcy petition?

Correct AnswerverifiedShow Answer

Liquidation may be voluntary, but not involuntary, under Chapter 7

Correct AnswerverifiedShow Answer

Garland files for Chapter 7 bankruptcy and an automatic stay has been issued. The court has granted an order of relief. A creditor's meeting is scheduled but Garland does not attend. At this point what is the court's option?

Correct AnswerverifiedShow Answer

After filing a voluntary Chapter 7 bankruptcy petition, assets that a debtor gains are generally not part of the bankruptcy estate unless they fall under an exemption.

Correct AnswerverifiedShow Answer

Which of the following does NOT fall under an exception to the automatic stay?

Correct AnswerverifiedShow Answer

Juanita agrees to repay debt to Broderick even though Juanita is filing for bankruptcy and could have the debt discharged. What type of agreement will Juanita and Broderick make?

Correct AnswerverifiedShow Answer

Emily's bank is trying to repossess her car after she filed for Chapter 7 bankruptcy. The bank is in error because once Emily files bankruptcy, a(n) ________ is issued.

Correct AnswerverifiedShow Answer

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Correct AnswerverifiedShow Answer

Which of the following is NOT part of the basic set of procedures for bankruptcy cases?

Correct AnswerverifiedShow Answer

Once a voluntary liquidation proceeding under Chapter 7 is filed, the debtor's prepetition assets form the ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In which of the following did Congress make comprehensive changes to bankruptcy law?

Correct AnswerverifiedShow Answer

Galloway Family Farms has been in business for over 70 years. It has fallen on hard times however. If the Galloway Family Farms wanted to adjust their debts, under what Chapter would they file?

Correct AnswerverifiedShow Answer

Under a Chapter 7 liquidation proceeding, which of the following would be eligible for this type of bankruptcy?

Correct AnswerverifiedShow Answer

The city of Normandy is in need of need of adjustment of debts to become solvent again, which of the following Chapters provide that opportunity in bankruptcy?

Correct AnswerverifiedShow Answer

To initiate a bankruptcy case, what is the first step?

Correct AnswerverifiedShow Answer

Which statement is true regarding the type of law that is relevant to bankruptcy claims?

Correct AnswerverifiedShow Answer

The Bankruptcy Code is contained within which of the following titles of the United States Code?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFirst, bankruptcy laws provide protectio...View AnswerShow Answer

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First, bankruptcy laws provide protectio...
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