Ch40 Bankruptcy Flashcards
1
Q
Reorganization plan imposed by court in spite of creditors’ objections.
A
Cram Down
2
Q
Disallowed transfer to a creditor
A
Preference
3
Q
- If the debtor has fewer than 12 creditors, it only takes one of them to force a person into involuntary bankruptcy.
A
True
4
Q
- Only business owners can file for bankruptcy.
A
False
5
Q
- A husband and wife must file separate petitions for bankruptcy with the court.
A
False
6
Q
- Reorganization proceedings are always voluntary.
A
False
7
Q
- Tax claims are always discharged by bankruptcy.
A
False
8
Q
- Unsecured claims are those for which creditors have no lien on specific assets.
A
True
9
Q
- A debtor’s creditors elect a trustee to manage and distribute the debtor’s assets during bankruptcy.
A
True
10
Q
- If a debtor involved in bankruptcy proceedings has possession of bailed goods, the true owner cannot recover the property.
A
False
11
Q
- Chapter 13 plan attempts to achieve for an individual debtor the same advantages that the business reorganization act gives to a business.
A
True
12
Q
- Property that may be exempt from bankruptcy may include:
A
a mechanic’s tools and tool chest.
13
Q
- Chapter ________ bankruptcy provides for liquidation.
A
7
14
Q
- Chapter ________ bankruptcy provides for a reorganization plan by which individual debtors can work out payment plans without immediate liquidation.
A
13
15
Q
- Chapter ________ bankruptcy provides for a reorganization plan by which businesses can work out reorganization without immediate liquidation.
A
11
