Reference no: EM133338167
Questions
1. The purpose of abandonment (Section 554 of Bankruptcy Code) is to:
a. Eliminate burdensome property of inconsequential value to the estate.
b. Give the debtor its exempt property.
c. Provide adequate protection to a secured creditor.
d. Allow the debtor a discharge.
2. To file a Chapter 13:
a. A corporation or partnership must have income stable and sufficient to make payments under a plan.
b. An individual must be a wage earner with sufficient and stable income to make payments under a plan.
c. All of the above.
d. None of the above.
3. A Chapter 7 discharge:
a. Discharges dischargeable debts as well as debts that arise from fraud or willful and malicious injury if no complaint or adversary proceeding was commenced seeking to deem those debts nondischargeable.
b. Never discharges otherwise dischargeable debts under section 523.
c. Discharges a corporation from all of its debts.
d. Discharges all unscheduled debts of the debtor.
4. Generally, a "discharge":
a. Closes a bankruptcy proceeding;
b. Closes an adversary proceeding;
c. Relieves the trustee of any professional liability;
d. Relieves the debtor of legal/personal liability of certain debts.
5. The Federal Wild Card Exemption:
a. Can only be claimed in connection with real property.
b. Cannot be claimed by debtors in a joint case.
c. is only available to corporations.
d. Can be used to exempt any property up to $13,900.
6. The following debts are typically not dischargeable:
certain tax debts;
student loans;
domestic support obligations;
all of the above.
7. In a Chapter 7 case, an individual debtor will not receive a discharge if she:
a. received a discharge in a chapter 7 case filed seven years ago.
b. Has not paid all priority claims in full.
c. Fails to object to improperly filed claims of creditors.
d. If she moves before the case is closed.
8. Property of the chapter 7 estate includes:
a. Property held by the debtor for a third person.
b. Property in which the debtor has any legal or equitable interest as of the filing date that the debtor has not claimed as exempt.
c. Post-petition wages of a Chapter 7 debtor.
d. None of the above.
9. A fraudulent conveyance that a trustee may set aside includes a transfer of property of the debtor:
a. For or on account of an antecedent debt.
b. A contemporaneous exchange of property of the debtor for new value given by the creditor.
c. for less than reasonably equivalent value in return at a time when the debtor is insolvent;
d. None of the above
10. A foreclosure sale held after a bankruptcy petition is filed and in violation of the automatic stay is typically:
Void;
Valid;
None of the above
All of the above
11. Administrative expenses that are incurred during a bankruptcy proceeding:
have the highest priority in the order of getting paid;
have the lowest priority in the order of getting paid;
are paid after the general unsecured creditors;
all of the above.
12. The chapter 7 trustee has certain "avoidance powers" which include the ability to avoid certain transactions such as:
Payments made to creditors within the ninety-day period prior to the filing (preference payments);
Transfers made by the debtor of property the debtor has an interest in exchange for little or no consideration (fraudulent transfers);
All of the above
None of the above
13. At the 341 meeting of creditors, the following occurs:
The trustee examines or asks the Debtor questions about information contained in the petition;
The debtor receives a discharge;
The Judge considers motions;
The debtor meets with his/her attorney to prepare his/her petition.
14. One element of an avoidable preference is that:
a. The transfer must be made within 90 days prior to the filing of the bankruptcy petition.
b. The creditor must give new value to the debtor.
c. The debtor must pay by check.
d. The creditor must receive money.
15. In a Chapter 13 case, unlike a large Chapter 11 case:
a. Only the trustee can propose a plan.
b. The debtor may not continue to operate the business.
c. The corporate shareholders of the debtor may not get paid under the plan.
d. A trustee is always appointed to collect the plan payments and distribute the payments to creditors in accordance with the terms of the plan.