Bankruptcy

Question 1

In which situations must a court dismiss a Chapter 13 proceeding or convert it to a Chapter 7 proceeding?

Answer 1

The debtor’s actions create an unreasonable delay that prejudices creditors.

Question 2

What must be true for an unpaid seller to reclaim goods sold to an insolvent buyer?

Answer 2

The goods are not subject to the prior rights of another with a security interest in the goods.

Question 3

What are a Trustee’s rights to a debtor who sold property for less than equivalent value a year prior to filing bankruptcy?

Answer 3

The trustee may avoid the transfer, regardless of the debtor’s intent, if the debtor was insolvent at the time of the transfer.

Question 4

What happens to property acquired after filing bankruptcy?

Answer 4

Any property that the debtor becomes entitled to by bequest, devise, or inheritance within 180 days after the petition is filed becomes part of the bankruptcy estate.

Question 5

When may a debt not be discharged under Chapter 7?

Answer 5

if the debts aggregate over $650 to a single creditor

Question 6

What is true regarding an automatic Stay following the commencement of a bankruptcy?

Answer 6

the automatic stay does not apply to certain actions. One such action is an eviction proceeding based on endangerment or illegal use of controlled substances on the property, or the continuance of an eviction proceeding in which a landlord obtained a judgment of possession before the filing of the bankruptcy petition.

Question 7

When may a creditor commence against suit debtor?

Answer 7

A Chapter 7 or Chapter 11

Question 8

What can be said for the voluntary filing of a bankruptcy suit

Answer 8

The filing of a petition automatically constitutes an order for relief.