Chapter 15 Quiz Flashcards
Builders Construction files a voluntary petition for bankruptcy. In listing its assets, Builders intentionally omits certain assets, including plots of undeveloped real estate. After Builders is granted a discharge, Commercial Electric, one of Builders’ unsecured creditors whose claims were discharged, learns of the fraud. Commercial Electric can
a. do nothing.
b. file an involuntary petition for bankruptcy against Builders.
c. enforce its claim against Builders.
d. take possession of the stones with or without a breach of the peace.
C
Dan defaults on a debt to Rachel. Rachel will not be able to recover the debt from
a. the sale of Dan’s prize-winning pet dog.
b. Dan’s lottery winnings.
c. Dan’s wages.
d. the sale of Dan’s investments in stocks.A
A
EZ Credit, Inc., lends $1,000 to Joe. Kay acts as Joe’s surety. If Kay pays the loan, she gets
a. any right that EZ had against Joe and a right to be repaid by Joe.
b. any right that EZ had against Joe, but not a right to be repaid by Joe.
c. none of the choices.
d. a right to be repaid by Joe, but not any right that EZ had against Joe.
A
Farrah buys a car from Go Motors, financing the purchase through a loan. Less than a year later, she files for bankruptcy under Chapter 13. Her plan must provide that Go has a lien on the car until the entire debt is paid
a. if Go extended credit for all or part of the purchase price of the car.
b. if her other creditors do not object.
c. under no circumstances.
d. if any of the loan for the car remains unpaid, regardless of the creditor.
A
Edgar refuses to pay Delia $500 for the cost to repair Edgar’s washing machine and dryer, which Delia still possesses. Delia has a lien on the machines, which will terminate
a. if she continues to maintain possession.
b. if she voluntarily surrenders possession.
c. at the end of the machines’ warranty period.
d. if she does not file a written notice of lien within thirty days.
B
Jo files a voluntary petition for bankruptcy under Chapter 7. The court will likely deny a discharge of her debts if she
a. does not have sufficient assets to pay all her secured creditors.
b. has a criminal record.
c. conceals records of her financial condition to defraud a creditor.
d. filed for bankruptcy 12 years ago.
C
Julie owes Ryan $10,000. When the debt comes due, Julie refuses to pay. Ryan obtains a judgment to collect the debt. Using a writ of execution, the court orders the sheriff to seize Julie’s boat and sell it to pay the debt. The boat sells for $15,000. Ryan will receive
a. $7,500.
b. $10,000.
c. $15,000 minus the collection costs.
d. $15,000.
B
Olive borrows money from Capital Loan Company. For Capital to obtain a writ of execution, Olive must
a. be unable to redeem her exempt property.
b. surrender possession of her property to a court.
c. be unable or refuse to pay the amount of a judgment.
d. be notified in writing (in a “writ”) of the lender’s intent.
C
Renee’s voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as
a. her creditors agree to the terms.
b. she posts a bond to cover the costs of the proceedings.
c. she files the petition.
d. the trustee collects and distributes the property of her estate.
C
Rico borrows $110,000 from Sterling Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is
foreclosure.
a. subrogation.
b. execution.
c. attachment.
d. foreclosure.
D
