Chp 13 - Bankruptcy Law

Question 1

The law governing bankruptcy is federal statutory law.
- True
- False

Answer 1

True

Question 2

The most common bankruptcy proceeding is known as adjustment of debt.
- True
- False

Answer 2

False

Question 3

A debtor filing for Chapter 7 bankruptcy must provide a list of all immediate family members because persons such as spouses may be liable for the bankrupt person’s debts.
- True
- False

Answer 3

False

Question 4

The debts owed to secured creditors have the greatest protection in bankruptcy proceedings.
- True
- False

Answer 4

True

Question 5

The role of the trustee is to minimize the amount of the debtor’s assets available for distribution to creditors.
- True
- False

Answer 5

False

Question 6

In a bankruptcy proceeding all creditors must be paid an equal share of the assets available, according to the amount of debt owed.
- True
- False

Answer 6

False

Question 7

The final stage of bankruptcy is the dissolution stage.
- True
- False

Answer 7

False

Question 8

Once a bankruptcy is finished, bankrupts are relieved of paying all debts.
- True
- False

Answer 8

False

Question 9

The framers of the Constitution specifically made bankruptcy a matter of:
- state law
- federal law
- common law
- arbitrary law
- tort law

Answer 9

federal law

Question 10

The primary objective of the trustee is:
- to deplete the debtor’s estate
- to protect general creditors first
- to ensure that the debtor’s exempt property is liquidated
- to maximize the amount of the debtor’s assets that the trustee is paid
- none of the other choices

Answer 10

none of the other choices

Question 11

Bankruptcy discharge is:
- illegal
- when a third party steps in to pay the debtor’s debts
- when creditors forgive all debt
- the final stage of the bankruptcy proceeding for individuals
- none of the other choices are correct

Answer 11

the final stage of the bankruptcy proceeding for individuals

Question 12

Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
- alimony and child support payments
- back taxes
- debts incurred by fraud against creditors
- fined owed to the government
- all of the other choices

Answer 12

all of the other choices

Question 13

The primary objective of the trustee is:
- to deplete the debtor’s estate
- to protect general creditors first
- to ensure that the debtor’s exempt property is liquidated
- to maximize the amount of the debtor’s assets available for distribution to creditors
- to maximize the amount of the debtor’s assets that the trustee is paid

Answer 13

to maximize the amount of the debtor’s assets available for distribution to creditors

Question 14

Bankruptcy proceedings hold that transfers of debtor’s property ____to the bankruptcy filing are void.
- up to 90 days prior
- up to 30 days prior
- up to 5 days prior
- up to 120 days
- up to 7 days

Answer 14

up to 90 days prior

Question 15

The final stage of bankruptcy is known as:
- disruption in bankruptcy
- removal in bankruptcy
- distancing of the debtor
- discharge in bankruptcy
- divorce from the proceedings

Answer 15

discharge in bankruptcy

Question 16

Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
- debts owed for the purchase of “necessities”
- alimony
- debts owed for food purchases
- all of the other specific choices
- none of the other choices

Answer 16

alimony

Question 17

Once bankruptcy proceedings are finished, the consumer’s credit record:
- is wiped clean
- may not mention the first bankruptcy a person has had
- may note the bankruptcy for up to seven years
- may always show that the person went through a bankruptcy
- none of the other choices

Answer 17

none of the other choices

Question 18

People who have above average income are more likely to use Chapter 13 bankruptcy rather than Chapter 7.
- True
- False

Answer 18

True

Question 19

The higher the income of a bankrupt, the more likely the debts will be discharged by Chapter 7 bankruptcy rather than by debt repayment over time.
- True
- False

Answer 19

False

Question 20

Chapter 13 bankruptcy proceedings are used mainly by businesses.
- True
- False

Answer 20

False

Question 21

In Chapter 13 bankruptcy, there is a confirmation plan worked out by the trustee.
- True
- False

Answer 21

True

Question 22

Bankruptcy in Chapter 13 is usually to be completed in seven years.
- True
- False

Answer 22

False

Question 23

In an involuntary bankruptcy, the trustee files the petition for bankruptcy.
- True
- False

Answer 23

False

Question 24

The creditor is responsible for liquidating all of the debtor’s exempt property in bankruptcy proceedings.
- True
- False

Answer 24

False

Question 25

In the priority of classes of creditors, taxes owed to the government come before any other payments. - True - False

Answer 25

False

Question 26

In a bankruptcy proceeding all creditors must be paid an equal share of the assets available, according to the amount of debt owed. - True - False

Answer 26

False

Question 27

After secured creditors are paid, all other creditors share the proceeds of the debtor's estate equally. - True - False

Answer 27

False

Question 28

A bankruptcy is a matter of credit history record for ten years. - True - False

Answer 28

True

Question 29

Just as with a Chapter 7 bankruptcy, the debt of a Chapter 13 bankrupt are discharged. - True - False

Answer 29

False

Question 30

Bankruptcy in Chapter 13 is usually to be completed in five years. - True - False

Answer 30

True

Question 31

Bankruptcy proceedings may be voluntary or involuntary. - True - False

Answer 31

True

Question 32

Chapter 13 bankruptcy largely involved debt rescheduling. - True - False

Answer 32

True

Question 33

The creditors with the highest priority in bankruptcy proceedings are the secured creditors. - True - False

Answer 33

True

Question 34

Even though a person is declared bankrupt, he or she will still have to pay child support, if they have a legal obligation to do so. - True - False

Answer 34

True

Question 35

Under a Chapter 11 reorganization, the debtor acts as a trustee. - True - False

Answer 35

True

Question 36

Even though a person is declared bankrupt, he or she will still have to pay back student loans; they are usually not eliminated. - True - False

Answer 36

True

Question 37

Under Chapter 11 proceedings, businesses are forced to sell all company assets to pay outstanding debts. - True - False

Answer 37

False