Question 1

In most states,state law determines the amount of a debtor's property that is exempt from distribution on bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

Mabel files a petition in bankruptcy.The initial proceeding on this petition will be in

Accepted Answer

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

Question 3

Pola files a petition in bankruptcy.Pola's non-dischargeable debts include

Accepted Answer

A)   domestic-support obligations.
B)   student loans if payment would impose undue hardship.
C)   unpaid loans to finance home repairs.
D)   unsecured credit-card debt.E) None of the above
F) B) and D)

Question 4

Lulu joins with other creditors to force Mikhail,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Accepted Answer

A)   ensure that creditors will continue to lend to insolvent debtors.
B)   protect creditor assets from diminution in value.
C)   provide equitable treatment in the competition for debtor assets.
D)   make all debtor property available for creditor claims.E) All of the above
F) B) and D)

Question 5

An employer can dismiss an employee due to garnishment for one debt.

Accepted Answer

A) True 
 B)False

Question 6

The time for repayment under an individual's Chapter 11 plan is three or five years,depending on the debtor's family income.

Accepted Answer

A) True 
 B)False

Question 7

Ollie files a petition in bankruptcy.At the moment of filing

Accepted Answer

A)   an automatic stay goes into effect.
B)   Ollie's debts are discharged.
C)   Ollie's petition is dismissed.
D)   Ollie's property is distributed to Ollie's creditors.E) B) and C)
F) A) and B)

Question 8

Frank's farm is to be sold at a foreclosure sale.For Frank to keep the farm by paying the full amount of the debt,plus any interest and costs that have accrued,is

Accepted Answer

A)   the equity of redemption.
B)   the exercise of exemption.
C)   the right of contribution.
D)   the right of subrogation.E) B) and C)
F) A) and B)

Question 9

Smartt Software Company borrows $10,000 from Term 'N All Loans,Inc.,but cannot repay the loan when it comes due.Term 'N All refuses to extend the time for repayment unless Smartt can provide an acceptable surety.Uno Venture Corporation agrees to act as a surety for the loan after Smartt offers the firm a discount on software and shows Uno financial statements,compiled with Term 'N All's assistance,that misrepresent Smartt's financial situation.Later,after Uno uses the discount to buy software,Smartt again defaults on repayment of the loan,and Term 'N All files a suit against Uno to collect the amount of the debt.Is Uno liable? Why or why not?

Accepted Answer

Uno is not liable,because Smartt committ...

Question 10

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

Accepted Answer

A)   a list of creditors and the amount of the debt owed to each only.
B)   a list of creditors and the amount of the debt owed to each, a list of property, and a statement of financial affairs.
C)   a list of property only. d a statement of financial affairs only.D) A) and B)
E) A) and C)

Question 11

Bankruptcy proceedings focus on the procedures to administer a debtor's estate in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 12

Mike owes $12,000 to Nora,$6,000 to Owen,and $6,000 to Pat.The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them,to be divided proportionately.This is

Accepted Answer

A)   a composition agreement.
B)   a guaranty agreement.
C)   a judicial lien.
D)   a suretyship agreement.E) B) and D)
F) A) and B)

Exam 21: Creditors Rights and Bankruptcy

Frank's farm is to be sold at a foreclosure sale.For Frank to keep the farm by paying the full amount of the debt,plus any interest and costs that have accrued,is

Correct Answer
verified

Lulu joins with other creditors to force Mikhail,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Correct Answer
verified

An employer can dismiss an employee due to garnishment for one debt.

Correct Answer
verified

In most states,state law determines the amount of a debtor's property that is exempt from distribution on bankruptcy.

Correct Answer
verified

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

Correct Answer
verified

Mike owes $12,000 to Nora,$6,000 to Owen,and $6,000 to Pat.The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them,to be divided proportionately.This is

Correct Answer
verified

Mabel files a petition in bankruptcy.The initial proceeding on this petition will be in

Correct Answer
verified

The time for repayment under an individual's Chapter 11 plan is three or five years,depending on the debtor's family income.

Correct Answer
verified

Bankruptcy proceedings focus on the procedures to administer a debtor's estate in bankruptcy.

Correct Answer
verified

Ollie files a petition in bankruptcy.At the moment of filing

Correct Answer
verified

Correct Answer
verified
Uno is not liable,because Smartt committ...
View Answer

Pola files a petition in bankruptcy.Pola's non-dischargeable debts include

Correct Answer
verified

Exam 21: Creditors Rights and Bankruptcy

Frank's farm is to be sold at a foreclosure sale.For Frank to keep the farm by paying the full amount of the debt,plus any interest and costs that have accrued,is

Correct AnswerverifiedShow Answer

Lulu joins with other creditors to force Mikhail,a debtor,into bankruptcy.One of the goals of bankruptcy law with respect to creditors is to

Correct AnswerverifiedShow Answer

An employer can dismiss an employee due to garnishment for one debt.

Correct AnswerverifiedShow Answer

In most states,state law determines the amount of a debtor's property that is exempt from distribution on bankruptcy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mike owes $12,000 to Nora,$6,000 to Owen,and $6,000 to Pat.The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them,to be divided proportionately.This is

Correct AnswerverifiedShow Answer

Mabel files a petition in bankruptcy.The initial proceeding on this petition will be in

Correct AnswerverifiedShow Answer

The time for repayment under an individual's Chapter 11 plan is three or five years,depending on the debtor's family income.

Correct AnswerverifiedShow Answer

Bankruptcy proceedings focus on the procedures to administer a debtor's estate in bankruptcy.

Correct AnswerverifiedShow Answer

Ollie files a petition in bankruptcy.At the moment of filing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUno is not liable,because Smartt committ...View AnswerShow Answer

Pola files a petition in bankruptcy.Pola's non-dischargeable debts include

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
Uno is not liable,because Smartt committ...
View Answer

Correct Answer
verified