Bankruptcy Flashcards
In a Chapter 11 Bankruptcy, which of the following is required for court to approve the reorganization plan: appointment of trustee OR provision for full payment of administration expenses?
Provision for full payment of administration expenses
Under a Chapter 7 Bankruptcy, a bankruptcy discharge on a judgment creditor when there is no bankruptcy estate will result with the debtor having: statutory lien owed to judgment creditor OR no remaining personal liability to the judgment creditor?
No remaining personal liability to the judgment creditor
Under a Chapter 7 Bankruptcy, a debtor must meet which requirement to file a voluntary bankruptcy petition: insolvency OR three or more creditors?
Neither. No requirements on solvency or number of creditors in Chapter 7 Bankruptcy
Under a Chapter 7 Bankruptcy, which of the following is not allowed to file a petition: banks OR insurance companies?
Both
Under a Chapter 7 Bankruptcy, a petition will not result to an issuance of stay against most creditor lawsuits against the debtor: TRUE or FALSE?
FALSE
Under a Chapter 7 Bankruptcy, properties acquired by debtor after filing a petition are exempt from being a part of the bankruptcy estate, except: Gifts OR investment earnings
Gifts
When received within how many days of the petition, inheritances, life insurance proceeds, and divorce property settlements are included in the bankruptcy estate?
180 days of the petition
Under a Chapter 7 Bankruptcy, an involuntary petition will result to an appointment of a trustee: TRUE or FALSE?
TRUE
When a debtor has fewer than 12 creditors, what are the three minimum requirements for the creditors to file an involuntary bankruptcy (Chapter 7 and 11)?
- Signatures from one or more creditors
- Unsecured claims of $16,750
- Debtor is not paying debts as they become due
When a debtor has more than 12 creditors, what are the two minimum requirements for the creditors to file an involuntary bankruptcy (Chapter 7 and 11)?
- Signatures of three or more creditors
- Unsecured claims of $16,750
- Debtor is not paying debts as they become due
Payment to an an unsecured loan within how many days prior to filing of petition will be considered a preferential transfer?
90 days
Payment to an insider within how many days prior to filing of petition will be considered a preferential transfer?
1 year
When an involuntary petition under Chapter 7 Bankruptcy is dismissed, the debtor can recover which of the following:
A. Court costs and attorney fees
B. Compensatory damages
C. Punitive damages
All of them
Chapter 11 Bankruptcy is not available to which of the following:
A. Corporations
B. Partnerships
C. Individuals
Available to all of them
Chapter 11 Bankruptcy is not available to which of the following: A. Banks B. Savings and loans companies C. Insurance companies D. Railroads E. Stockbrokers
Not available to all of them except railroads
Under Chapter 11 Bankruptcy, a creditors’ committee is formed and consists of: unsecured creditors OR secured creditors?
Unsecured creditors only
Which chapter of the Bankruptcy Code is reserved for municipalities only?
Chapter 9 of the Bankruptcy Code
Preferential transfer applies to: pre-existing debt OR contemporaneous exchange
Pre-existing debt
Preferential transfer within 90 days applies if collateral is given after the antecedent debt: TRUE or FALSE?
TRUE
For which chapter of the Bankruptcy Code must the debtor prove insolvency in case of voluntary bankruptcy: Chapter 7, 11, or 13?
None of them. Insolvency is not required in any of them
A trustee is appointed in what type of Chapter 7 Bankruptcy petition: involuntary OR voluntary?
Involuntary petition
This Chapter of the Bankruptcy Code is voluntary only: Chapter 7, 11, OR 13?
Chapter 13
This Chapter of the Bankruptcy Code deals with Liquidation: Chapter 7, 11, or 13?
Chapter 7
This Chapter of the Bankruptcy Code deals with Business Reorganization: Chapter 7, 11, or 13?
Chapter 11
