Question 1

Job Service,Inc. ,needs funds to meet its payroll,to make other cur?rent operating expenses,and to pay its creditors.Kelly,Job Service's only shareholder,loans the company $10,000 and accepts a promissory note signed on behalf of Job Service by Luna,the firm's accountant.Job Service's fi?nancial problems continue,however,and the firm's creditors file an in?voluntary petition to force it into bankruptcy.Is Kelly entitled to repay?ment of the loan to Job Service? If so,what is the priority of the claim?

Accepted Answer

Kelly is entitled to be repaid the amoun...

Question 2

Lorissa files a petition for bankruptcy.Lorissa's creditors must file with the court their proof of claims against Lorissa's assets within

Accepted Answer

A)  fifteen days of the order for relief.
B)  thirty days of the filing of the petition.
C)  sixty days of the automatic stay.
D)  ninety days of the creditors' meeting.E) None of the above
F) A) and B)

Question 3

In the distribution of the debtor's estate,secured creditors take priority over unsecured creditors.

Accepted Answer

A) True 
 B)False

Question 4

For individual debtors,the plan in a reorganization case must be completed before discharge will be granted.

Accepted Answer

A) True 
 B)False

Question 5

Wilbur files a petition in bankruptcy for relief through an individual's repayment plan.Wilbur is granted a discharge.Debts that will not be discharged include claims for

Accepted Answer

A)  contributions to employee benefit plans.
B)  money to be paid for services not rendered.
C)  fraudulently incurred debt.
D)  long overdue credit-card debt.E) All of the above
F) None of the above

Question 6

Bernice files a petition in bankruptcy.The initial proceeding on this peti?tion will be in

Accepted Answer

A)  a federal bankruptcy court.
B)  a state bankruptcy court.
C)  the highest court in the state in which Bernice is located.
D)  the United States Supreme Court.E) C) and D)
F) A) and D)

Question 7

A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by

Accepted Answer

A)  Eminent Employees Credit Union,a corporation.
B)  Federal Savings & Loan Association,a corporation.
C)  Goodhands Insurance Company,a corporation.
D)  Henry,an independent financial adviser.E) C) and D)
F) All of the above

Question 8

Fact Pattern 30-1A 
Stacy sells her all-terrain vehicle (ATV) to her brother Terrill for $1,000.Twelve days later,Stacy files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 30-1A.Terrill dies while riding the ATV.Stacy is Terrill's only heir.With respect to the bankruptcy estate,the inheritance is

Accepted Answer

A)  exempt property.
B)  part of the estate if Terrill died more than 180 days after Stacy's filing.
C)  part of the estate if Terrill died within 180 days after Stacy's filing.
D)  part of the estate if the accident was in some way Stacy's fault.E) None of the above
F) B) and C)

Question 9

Certain debtors may not qualify to have all debts discharged in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

A trustee must call a meeting of the creditors listed in the schedules filed by the debtor.

Accepted Answer

A) True 
 B)False  True

Question 11

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Accepted Answer

A)  force Verna to file for relief through an individual repayment plan.
B)  discharge Verna's debts.
C)  distribute Verna's property to Verna's creditors.
D)  issue an automatic stay against any actions by Verna's creditors.E) None of the above
F) A) and C)

Question 12

An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

Accepted Answer

A) True 
 B)False

Question 13

The basic duty of a trustee is to collect and reduce to cash the property in the bankruptcy estate that is not exempt.

Accepted Answer

A) True 
 B)False

Question 14

Kipper files a petition in bankruptcy.Kipper's dischargeable debts include

Accepted Answer

A)  domestic-support obligations.
B)  student loans unless the lender would suffer undue hardship.
C)  unpaid state and federal taxes.
D)  unsecured credit-card debt.E) A) and B)
F) C) and D)

Question 15

To adjust debt and institute a repayment plan,Charlie-who is not a corpo?ration,a partnership,or a family farmer or fisherman-may file a peti?tion in bankruptcy for relief through

Accepted Answer

A)  a liquidation.
B)  a reorganization.
C)  a repayment plan.
D)  a family-farmer bankruptcy plan.E) A) and B)
F) All of the above

Question 16

To adjust debt and institute a repayment plan,Norman,a family fisherman,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter

Accepted Answer

A)  1.
B)  3.
C)  5.
D)  12.E) A) and B)
F) C) and D)

Question 17

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

Accepted Answer

A) True 
 B)False

Question 18

Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business.To accomplish this goal,Swim & Trim should file a petition in bankruptcy for relief through

Accepted Answer

A)  a liquidation.
B)  a reorganization.
C)  a repayment plan.
D)  a family-farmer bankruptcy plan.E) B) and C)
F) A) and D)

Question 19

Kenyon files a petition for bankruptcy.Kenyon must include with the petition

Accepted Answer

A)  a plan to turn over his future income to the trustee.
B)  a certificate proving attendance at a credit-counseling briefing.
C)  a provision of adequate means for the petition's execution.D) B) and C)
E) All of the above B

Question 20

To falsify information on official bankruptcy schedules is a crime.

Accepted Answer

A) True 
 B)False  True

Exam 30: B: Bankruptcy Law

Correct Answer
verified
Kelly is entitled to be repaid the amoun...
View Answer

Lorissa files a petition for bankruptcy.Lorissa's creditors must file with the court their proof of claims against Lorissa's assets within

Correct Answer
verified

In the distribution of the debtor's estate,secured creditors take priority over unsecured creditors.

Correct Answer
verified

For individual debtors,the plan in a reorganization case must be completed before discharge will be granted.

Correct Answer
verified

Wilbur files a petition in bankruptcy for relief through an individual's repayment plan.Wilbur is granted a discharge.Debts that will not be discharged include claims for

Correct Answer
verified

Bernice files a petition in bankruptcy.The initial proceeding on this peti?tion will be in

Correct Answer
verified

A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by

Correct Answer
verified

Correct Answer
verified

Certain debtors may not qualify to have all debts discharged in bankruptcy.

Correct Answer
verified

A trustee must call a meeting of the creditors listed in the schedules filed by the debtor.

Correct Answer
verified
True

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Correct Answer
verified

An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

Correct Answer
verified

The basic duty of a trustee is to collect and reduce to cash the property in the bankruptcy estate that is not exempt.

Correct Answer
verified

Kipper files a petition in bankruptcy.Kipper's dischargeable debts include

Correct Answer
verified

To adjust debt and institute a repayment plan,Charlie-who is not a corpo?ration,a partnership,or a family farmer or fisherman-may file a peti?tion in bankruptcy for relief through

Correct Answer
verified

To adjust debt and institute a repayment plan,Norman,a family fisherman,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter

Correct Answer
verified

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

Correct Answer
verified

Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business.To accomplish this goal,Swim & Trim should file a petition in bankruptcy for relief through

Correct Answer
verified

Kenyon files a petition for bankruptcy.Kenyon must include with the petition

Correct Answer
verified
B

To falsify information on official bankruptcy schedules is a crime.

Correct Answer
verified
True

Exam 30: B: Bankruptcy Law

Correct AnswerverifiedKelly is entitled to be repaid the amoun...View AnswerShow Answer

Lorissa files a petition for bankruptcy.Lorissa's creditors must file with the court their proof of claims against Lorissa's assets within

Correct AnswerverifiedShow Answer

In the distribution of the debtor's estate,secured creditors take priority over unsecured creditors.

Correct AnswerverifiedShow Answer

For individual debtors,the plan in a reorganization case must be completed before discharge will be granted.

Correct AnswerverifiedShow Answer

Wilbur files a petition in bankruptcy for relief through an individual's repayment plan.Wilbur is granted a discharge.Debts that will not be discharged include claims for

Correct AnswerverifiedShow Answer

Bernice files a petition in bankruptcy.The initial proceeding on this peti?tion will be in

Correct AnswerverifiedShow Answer

A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Certain debtors may not qualify to have all debts discharged in bankruptcy.

Correct AnswerverifiedShow Answer

A trustee must call a meeting of the creditors listed in the schedules filed by the debtor.

Correct AnswerverifiedTrue

Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Correct AnswerverifiedShow Answer

An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

Correct AnswerverifiedShow Answer

The basic duty of a trustee is to collect and reduce to cash the property in the bankruptcy estate that is not exempt.

Correct AnswerverifiedShow Answer

Kipper files a petition in bankruptcy.Kipper's dischargeable debts include

Correct AnswerverifiedShow Answer

To adjust debt and institute a repayment plan,Charlie-who is not a corpo?ration,a partnership,or a family farmer or fisherman-may file a peti?tion in bankruptcy for relief through

Correct AnswerverifiedShow Answer

To adjust debt and institute a repayment plan,Norman,a family fisherman,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter

Correct AnswerverifiedShow Answer

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

Correct AnswerverifiedShow Answer

Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business.To accomplish this goal,Swim & Trim should file a petition in bankruptcy for relief through

Correct AnswerverifiedShow Answer

Kenyon files a petition for bankruptcy.Kenyon must include with the petition

Correct AnswerverifiedB

To falsify information on official bankruptcy schedules is a crime.

Correct AnswerverifiedTrue

Correct Answer
verified
Kelly is entitled to be repaid the amoun...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified
True