Ch40 Bankruptcy

Question 1

Reorganization plan imposed by court in spite of creditors’ objections.

Answer 1

Cram Down

Question 2

Disallowed transfer to a creditor

Answer 2

Preference

Question 3

1. If the debtor has fewer than 12 creditors, it only takes one of them to force a person into involuntary bankruptcy.

Answer 3

True

Question 4

2. Only business owners can file for bankruptcy.

Answer 4

False

Question 5

3. A husband and wife must file separate petitions for bankruptcy with the court.

Answer 5

False

Question 6

4. Reorganization proceedings are always voluntary.

Answer 6

False

Question 7

5. Tax claims are always discharged by bankruptcy.

Answer 7

False

Question 8

6. Unsecured claims are those for which creditors have no lien on specific assets.

Answer 8

True

Question 9

7. A debtor’s creditors elect a trustee to manage and distribute the debtor’s assets during bankruptcy.

Answer 9

True

Question 10

8. If a debtor involved in bankruptcy proceedings has possession of bailed goods, the true owner cannot recover the property.

Answer 10

False

Question 11

9. Chapter 13 plan attempts to achieve for an individual debtor the same advantages that the business reorganization act gives to a business.

Answer 11

True

Question 12

10. Property that may be exempt from bankruptcy may include:

Answer 12

a mechanic’s tools and tool chest.

Question 13

11. Chapter ________ bankruptcy provides for liquidation.

Answer 13

7

Question 14

12. Chapter ________ bankruptcy provides for a reorganization plan by which individual debtors can work out payment plans without immediate liquidation.

Answer 14

13

Question 15

13. Chapter ________ bankruptcy provides for a reorganization plan by which businesses can work out reorganization without immediate liquidation.

Answer 15

11

Question 16

CROSSWORD: If the debtor complies with the court and trustee in bk and all other requirements then the ___________ will be granted.

Answer 16

Discharge

Question 17

CROSSWORD: This is one of the most common exempt properties in a bk.

Answer 17

Residence

Question 18

CROSSWORD: This is disallowed transfer to a creditor.

Answer 18

Preference

Question 19

CROSSWORD: This is a debt that is not discharged. (Sometimes you have to get these to finish college).

Answer 19

Educational Loans

Question 20

CROSSWORD: This is property not used to pay off debts.

Answer 20

Exempt

Question 21

CROSSWORD: Under chapter 13, the bk laws provide special arrangements that do not result in liquidation but instead allow for ______________.

Answer 21

Reorganize

Question 22

CROSSWORD: Claims of a debtor in bk may be classified as ____________, partially secured, or unsecured claims.

Answer 22

Fully Secured

Question 23

CROSSWORD: This is one debt that will not be discharged. (Hint: You may this through payroll deductions).

Answer 23

Taxes

Question 24

CROSSWORD: There are two kinds of debtors; voluntary and ____________.

Answer 24

Involuntary

Question 25

CROSSWORD: This is a court imposed reorganization plan even if a class of creditors objects to the plan.

Answer 25

Cram Down

Question 26

CROSSWORD: The federal bankruptcy law has how very definite purposes?

Answer 26

Two

Question 27

CROSSWORD: Before debtors may file for bankruptcy, they must complete a 90-minute ____________ session in the six months prior to filing. (Two words)

Answer 27

Credit Counseling

Question 28

CROSSWORD: Banks, ________, savings and loan associations, and some municipalities are not eligible to file bankruptcy.

Answer 28

Insurance Companies