Bankruptcy

Question 1

when a debtor is granted a discharge in a bankruptcy proceeding,

Answer 1

most of the debtor’s obligations are discharged.

Question 2

A debt arising from the negligence of the debtor

Answer 2

is a dischargeable debt

Question 3

Chapter 11 of the Bankruptcy Reform Act of 1978 deals with reorganizations. This Chapter

Answer 3

Permits the debtor-in-possession to continue to operate the business in the same manner as a Chapter 11 trustee

Question 4

Under Chapter 11 of the Federal Bankruptcy Code, which of the following actions is necessary before the court may confirm a reorganization plan?

Answer 4

Provision for full payment of administration expenses

Question 5

The debtor may regain possession of property in the possession of an interim trustee if

Answer 5

the debtor files the bond requested by the court.

Question 6

A claim will not be discharged in a bankruptcy proceeding if it

Answer 6

Arises from an extension of credit based upon false representations

Question 7

In a bankruptcy proceeding, the trustee

Answer 7

Is the representative of the bankrupt’s estate and as such has the capacity to sue and be sued on its behalf

Question 8

The filing of the bankruptcy petition acts as an

Answer 8

automatic stay of lawsuits by the debtor’s creditors.

Question 9

ny unpaid amount of taxes due to the United States or to any state or subdivision thereof from within 3 years preceding bankruptcy

Answer 9

is not discharged by the bankruptcy proceeding.