Question 1

Shippers Dispatch Corporation orders office equipment from Office Outfitters, Inc. on credit. Shippers Dispatch takes out a loan from Capital Credit, Inc., subject to a security interest in Shippers Dispatch's building and equipment. Shippers Dispatch owes several other creditors for the purchase or supplies and raw materials. With debts of $1.1 million, Shippers Dispatch files a bankruptcy petition under Chapter 11. Discuss the Chapter 11 process and what role each of the creditors will play in that process.

Accepted Answer

In a voluntary Chapter 11 bankruptcy, th...

Question 2

Building Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Accepted Answer

A)   a liquidation.
B)   a reorganization.
C)   a repayment plan.
D)   an adjustment plan.E) A) and D)
F) A) and C)

Question 3

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Accepted Answer

A)   owns a business with ten or more employees .
B)   is a farmer.
C)   is also a creditor .
D)   refuses to comply.E) B) and D)
F) B) and C)

Question 4

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Accepted Answer

A)   denied a discharge of his or debts in the bankruptcy proceeding.
B)   ordered to complete a means test.
C)   forced to submit to an examination by the creditors.
D)   told to turn over control of his or her property to a bankruptcy trustee.E) None of the above
F) All of the above

Question 5

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Accepted Answer

A)   the profit of the debtor's creditors.
B)   the income of other families in the same state.
C)   the wealth available to the debtor's peers.
D)   the debtor's expenses.E) A) and B)
F) C) and D)

Question 6

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Accepted Answer

A)   goodwill.
B)   good faith.
C)   bad faith.
D)   intent.E) A) and C)
F) B) and C)

Question 7

In addition to financial statements, each voluntary petition in bankruptcy must include

Accepted Answer

A)   a plan outlining how debt payments will be made.
B)   a certificate proving the receipt of credit counseling.
C)   a creditors' agreement allowing the debtor to continue in business.
D)   a statement of preference for one creditor over another.E) A) and B)
F) A) and C)

Question 8

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Accepted Answer

A)   permits creditors to force a debtor into involuntary bankruptcy.
B)   allows a debtor to retain possession of his or her assets.
C)   is more expensive and more complicated.
D)   permits any interested party to file a repayment plan.E) All of the above
F) A) and B)

Question 9

With respect to debtors, the main goal of bankruptcy law is to

Accepted Answer

A)   encourage the continued use of credit .
B)   ensure that third parties will continue to guarantee loans.
C)   provide a new start without creditors' claims .
D)   shield assets from creditors' claims.E) C) and D)
F) None of the above

Question 10

Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for

Accepted Answer

A)   debts related to motor vehicles, household goods, and trade tools .
B)   domestic support.
C)   the debtor's equity in his or her residence .
D)   student loans.E) All of the above
F) A) and C)

Question 11

With respect to creditors, the main goal of bankruptcy law is to

Accepted Answer

A)   ensure that creditors will continue to lend to insolvent debtors.
B)   ensure that the debtor suffers for poor financial choices .
C)   ensure equitable treatment in the competition for debtor assets.
D)   make all debtor property available for all creditor claims.E) B) and C)
F) A) and D)

Question 12

Under Chapter 13, a plan must provide for the payment of all of the debtor's obligations in full.

Accepted Answer

A) True 
 B)False

Question 13

An involuntary bankruptcy occurs when a debtor

Accepted Answer

A)   files forms designated for the purpose.
B)   is unable to pay his or her debts as they come due.
C)   is forced into bankruptcy proceedings by his or her creditors.
D)   has debts that exceed the fair market value of his or her assets.E) C) and D)
F) A) and B)

Question 14

All bankruptcy proceedings are held in

Accepted Answer

A)   federal bankruptcy courts .
B)   state bankruptcy courts.
C)   special cross-jurisdictional debtors courts .
D)   local small-claims courts.E) B) and C)
F) A) and D)

Question 15

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 16

Chapter 11 bankruptcy is available to

Accepted Answer

A)   any debtor who is eligible under Chapter 7, and railroads.
B)   an individual, not a partnership or a corporation, with regular income and debts of less than a certain amount.
C)   any "person" except railroads and certain financial institutions.
D)   any party who is not eligible under a different chapter of the Code.E) A) and D)
F) A) and B)

Question 17

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Accepted Answer

A)   an automatic stay .
B)   the discharge of the debtor's obligations.
C)   the dismissal of the petition .
D)   the distribution of the debtor's assets to his or her creditors.E) A) and B)
F) A) and C)

Question 18

An individual debtor is not entitled to exempt any property from a Chapter 7 proceeding.

Accepted Answer

A) True 
 B)False

Question 19

In a Chapter 7 proceeding, the debtor's creditors take control of the debtor's property.

Accepted Answer

A) True 
 B)False

Question 20

Under Chapter 13, a repayment plan must provide for

Accepted Answer

A)   the turnover of the debtor's future income to the creditors.
B)   full payment of all claims, without exception.
C)   the same treatment of each claim within a particular class of claim.
D)   a vote of unsecured creditors.E) B) and D)
F) B) and C)

Exam 34: Bankruptcy

Under Chapter 13, a plan must provide for the payment of all of the debtor's obligations in full.

Correct Answer
verified

Under Chapter 13, a repayment plan must provide for

Correct Answer
verified

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Correct Answer
verified

An individual debtor is not entitled to exempt any property from a Chapter 7 proceeding.

Correct Answer
verified

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Correct Answer
verified

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Correct Answer
verified

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Correct Answer
verified

In addition to financial statements, each voluntary petition in bankruptcy must include

Correct Answer
verified

An involuntary bankruptcy occurs when a debtor

Correct Answer
verified

Chapter 11 bankruptcy is available to

Correct Answer
verified

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Correct Answer
verified

All bankruptcy proceedings are held in

Correct Answer
verified

Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for

Correct Answer
verified

Building Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Correct Answer
verified

With respect to creditors, the main goal of bankruptcy law is to

Correct Answer
verified

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Correct Answer
verified

With respect to debtors, the main goal of bankruptcy law is to

Correct Answer
verified

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Correct Answer
verified

Correct Answer
verified
In a voluntary Chapter 11 bankruptcy, th...
View Answer

In a Chapter 7 proceeding, the debtor's creditors take control of the debtor's property.

Correct Answer
verified

Exam 34: Bankruptcy

Under Chapter 13, a plan must provide for the payment of all of the debtor's obligations in full.

Correct AnswerverifiedShow Answer

Under Chapter 13, a repayment plan must provide for

Correct AnswerverifiedShow Answer

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

Correct AnswerverifiedShow Answer

An individual debtor is not entitled to exempt any property from a Chapter 7 proceeding.

Correct AnswerverifiedShow Answer

Under Chapter 7, a debtor who fails to appear at the creditors' meeting when required may be

Correct AnswerverifiedShow Answer

Gina's creditors attempt to force her into bankruptcy proceedings. The creditors will be unsuccessful if Gina

Correct AnswerverifiedShow Answer

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

Correct AnswerverifiedShow Answer

In addition to financial statements, each voluntary petition in bankruptcy must include

Correct AnswerverifiedShow Answer

An involuntary bankruptcy occurs when a debtor

Correct AnswerverifiedShow Answer

Chapter 11 bankruptcy is available to

Correct AnswerverifiedShow Answer

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

Correct AnswerverifiedShow Answer

All bankruptcy proceedings are held in

Correct AnswerverifiedShow Answer

Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for

Correct AnswerverifiedShow Answer

Building Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

Correct AnswerverifiedShow Answer

With respect to creditors, the main goal of bankruptcy law is to

Correct AnswerverifiedShow Answer

A debtor who makes false statements under oath may be denied a discharge of his or her debts in the bankruptcy proceeding.

Correct AnswerverifiedShow Answer

With respect to debtors, the main goal of bankruptcy law is to

Correct AnswerverifiedShow Answer

A bankruptcy trustee must determine whether the debtor's financial situation warrants relief based on a comparison of the debtor's income with

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn a voluntary Chapter 11 bankruptcy, th...View AnswerShow Answer

In a Chapter 7 proceeding, the debtor's creditors take control of the debtor's property.

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
verified
In a voluntary Chapter 11 bankruptcy, th...
View Answer

Correct Answer
verified