Day 27

Question 1

Under Chapter 7, what effect does a bankruptcy discharge have on the judgement creditor when there is NO bankruptcy estate?

Answer 1

The debtor is received of any personal liability to the judgement creditor

MCQ-01343

Question 2

Define: Chapter 9 bankruptcy

Answer 2

Is for municipal debt adjustment

MCQ-01345

Question 3

Define: Chapter 11 bankruptcy

Answer 3

Reorganization, NO liquidation, Trustee not required

MCQ-01345

Question 4

Define: Chapter 7 bankruptcy

Answer 4

Trustee appointed, and collects the debtors assets for liquidation

MCQ-01345

Question 5

Define: Chapter 12 bankruptcy

Answer 5

Family farmers with regular income

MCQ-01345

Question 6

What debtors qualify and don’t qualify for Chapter 11 bankruptcy?

Answer 6

DO: Individuals, Airlines, Railroads

DON’T: Stockbrokers, Savings and Loan Corp

MCQ-08646
MCQ-10977

Question 7

Filling a valid petition in bankruptcy acts as an Automatic Stay of actions to:

Answer 7

The Automatic Stay created upon filing the petition stops any attempt from creditors to collect through garnishment of wages

NOTE: Automatic Stay DOES NOT stop the collection of alimony

MCQ-01888

Question 8

What does the filling of a Voluntary and an Involuntary petition stop?

Answer 8

Stops the enforcement of all judgement liens

MCQ-01892

Question 9

Who cannot be petitioned into filling an Involuntary bankruptcy?

Answer 9

Farmers and Non-Profit Organizations

MCQ-08884

Question 10

What is a requirement to file an Involuntary petition against an individual under Chapter 7 bankruptcy?

Answer 10

• At least 3 creditors
• Debtor has not been paying it’s debts when they become due

MCQ-10969
MCQ-15637

Question 11

A contested involuntary petition in bankruptcy will be dismissed if the debtor is?

Answer 11

In the business of farming

MCQ-15638

Question 12

What is exempt property in the bankruptcy estate?

Answer 12

• Social Security
• Veterans benefits
• Unemployment comp.
• Disability comp.

MCQ-01350

Question 13

When can a creditor file an Involuntary petition against the debtor under Chapter 11?

Answer 13

When the debtor has fewer than 12 creditors and the creditor is owed more than $18,600

NOTE: One creditor can file the involuntary petition if the above is met

MCQ-15449

Question 14

With regards to bankruptcy, what are fraudulent transfers?

Answer 14

• Transfers made within two years of the filling date with the intent to hinder, delay, or defraud creditors
• Transfers where the debtor receives less than equivalent value

MCQ-05033