Bankruptcy Quiz: Understanding Chapters 7 and 13, Exams of Bankruptcy Law

Download Bankruptcy Quiz: Understanding Chapters 7 and 13 and more Exams Bankruptcy Law in PDF only on Docsity! Bankruptcy Quizzes and answers A debtor doesn't qualify for Chapter 7 if he previously received a discharge under Chapter 7 or Chapter 11 within _____ years preceding the file of this petition. CORRECT ANSWERS✅ eight. A debtor doesn't qualify for Chapter 7 if she previously received a discharge under Chapter 13 or Chapter 12 within _____ years preceding the filing of this petition. CORRECT ANSWERS✅ six. Failure to complete a post-petition financial management course can lead to which of the following consequences: CORRECT ANSWERS✅ Denial of discharge Failing to abide by a lawful court order can lead to which of the following consequences: CORRECT ANSWERS✅ Both Student loans are generally nondischargable absent a showing of "undue hardship." CORRECT ANSWERS✅ True Which of the following debts might be discharged in a Chapter 7 case? CORRECT ANSWERS✅ Debts incurred through negligent breach of contract A debtor's unreasonable delay may result in which consequences? Choose as many as apply. CORRECT ANSWERS✅ dismissal of bankruptcy filing denial of discharge Which of the following provides relief to a debtor whose failure to complete payments under the plan is beyond his control? CORRECT ANSWERS✅ hardship discharge Bankruptcy Quizzes and answers Which of the following examines whether the debtor has acted with honesty, integrity, and fairness throughout the bankruptcy process? CORRECT ANSWERS✅ good faith Which of the following is not relevant in an inquiry into good faith? CORRECT ANSWERS✅ Debtor's political and religious preferences Any obligation arising out of embezzlement or larceny cannot be discharged in bankruptcy but only if accompanied by breach of a fiduciary duty. CORRECT ANSWERS✅ False No tax obligation, no matter how old, can be discharged in a Chapter 7 case. CORRECT ANSWERS✅ False The court can dismiss any Chapter 7 case on a showing that the petition was filed in bad faith or on a determination that the filing of the case is an abuse of the system from the totality of the circumstances. CORRECT ANSWERS✅ True Debts not listed on debtor's schedules are not discharged in a bankruptcy case. CORRECT ANSWERS✅ True A fiduciary capacity arises when the debtor occupies what type of position as to another? Choose as many as apply. CORRECT ANSWERS✅ trust confidence Bankruptcy Quizzes and answers The Chapter 13 Plan provides for payment of creditors from the debtor's future earnings. CORRECT ANSWERS✅ True The term of a Chapter 13 plan may be for: CORRECT ANSWERS✅ 3-5 years Which proceeding involves the rearrangement of a debtor's finances under a court-approved plan? CORRECT ANSWERS✅ reorganization Which of the following debtors may be eligible to file a Chapter 13 bankruptcy? Choose as many as apply. CORRECT ANSWERS✅ An individual who is paid on commission. Correct! An individual with an income sufficiently stable to make payments under a plan. Correct! An individual who is retired. The required term of a Chapter 13 plan is known as the: CORRECT ANSWERS✅ applicable commitment period A Chapter 13 plan is often referred to by the percentage to be paid of _____ debt. CORRECT ANSWERS✅ unsecured The concept that unsecured creditors must receive at least as much under the Chapter 13 plan as they would have received in a Chapter 7 liquidation is known as: CORRECT ANSWERS✅ the best interests test Bankruptcy Quizzes and answers The bankruptcy trustee cannot challenge a Chapter 13 debtor's calculations of projected disposable income. CORRECT ANSWERS✅ False The Chapter 13 plan of an above median debtor must run five years unless CORRECT ANSWERS✅ the plan calls for secured creditors to receive 100% of their allowed claims The definition of current monthly income for a Chapter 13 debtor is the same as that for a Chapter 7 individual consumer debtor completing the means test. CORRECT ANSWERS✅ True The form used by the Chapter 13 debtor to calculate his or her applicable commitment period is: CORRECT ANSWERS✅ Official Form 122C-1 The form used by the above median Chapter 13 debtor to determine his or her projected disposable income is: CORRECT ANSWERS✅ Official Form 122C-2 The Supreme Court held in Hamilton v. Lanning that computation of the Chapter 13 debtor's projected disposable income over the term of the plan is to take into consideration changes in debtor's income that: CORRECT ANSWERS✅ are known or virtually certain to occur Under the Fair Credit Reporting Act, the federal statute that regulates credit reporting agencies, a bankruptcy filing as a public record can appear on the debtor's credit history for __ years following date of filing though many credit reporting agencies retain information regarding a Chapter 13 filing for only __ years following filing. CORRECT ANSWERS✅ 10; 7 Bankruptcy Quizzes and answers Which type of claims must be paid in full in the Chapter 13 plan? CORRECT ANSWERS✅ priority In what way are most payments during the plan handled? CORRECT ANSWERS✅ through the standing trustee For which type of claims may the Chapter 13 plan propose to create classes which may be treated differently from one another? CORRECT ANSWERS✅ unsecured Proposals for payments on secured claims during the plan and beyond are known as: (Choose as many as apply) CORRECT ANSWERS✅ ride through Correct! pay through Which type of lien may be avoided in Chapter 13? CORRECT ANSWERS✅ one that impairs an exemption in debtor's property A Chapter 13 plan is often referred to by the percentage to be paid of _____ debt. CORRECT ANSWERS✅ unsecured The concept that unsecured creditors must receive at least as much under the Chapter 13 plan as they would have received in a Chapter 7 liquidation is known as: CORRECT ANSWERS✅ the best interests test Priority claims may be paid in installments over the term of the plan. CORRECT ANSWERS✅ True Bankruptcy Quizzes and answers A debtor may not receive a discharge under Chapter 13 within _____ years of a prior discharge under Chapter 13 or within _____ years of a prior discharge under Chapters 7, 11, or 12. CORRECT ANSWERS✅ two; four Which of the following debts might be discharged in a Chapter 13 case? CORRECT ANSWERS✅ Debts incurred through negligent breach of contract Most objections to a Chapter 13 plan are worked out at the first meeting of creditors. CORRECT ANSWERS✅ True Once a debtor receives a discharge in Chapter 13, how soon can he or she file another Chapter 13 case? CORRECT ANSWERS✅ 2 years Only the standing trustee may object to a Chapter 13 plan being confirmed. CORRECT ANSWERS✅ False Upon confirmation, the property of the estate vests in the debtor free and clear of any claim or interest of any creditor provided for in the plan unless the plan or the order of confirmation state otherwise. CORRECT ANSWERS✅ True The Chapter 13 debtor may not incur any non-emergency post-petition debt other than normal living expenses without approval of the standing trustee. CORRECT ANSWERS✅ True What type of debtors are eligible to file under Bankruptcy Chapter 9? CHOOSE AS MANY AS APPLY. CORRECT ANSWERS✅ municipalities Bankruptcy Quizzes and answers Partnerships and corporations engaged in farming and fishing can be eligible to file Chapter 12 bankruptcy. CORRECT ANSWERS✅ True Individuals cannot file for Chapter 11 reorganization, only entities. CORRECT ANSWERS✅ False The Bankruptcy Code does not place a limit on the duration of a Chapter 11 plan of reorganization. CORRECT ANSWERS✅ True Chapter 12 bankruptcy may be initiated by an involuntary petition filed by creditors. CORRECT ANSWERS✅ False Upon filing of a Chapter 11 petition, a bankruptcy trustee is not immediately appointed. CORRECT ANSWERS✅ True The creditor's committee in a Chapter 11 case normally consists of how many of the largest unsecured creditors? CORRECT ANSWERS✅ seven The debtor-in-possession has the exclusive right for ___ days following the order for relief to file a proposed plan of reorganization. CORRECT ANSWERS✅ 120 If the debtor-in-possession does file a proposed plan during the exclusivity period then no competing plan can be filed until ___ after the petition is filed. CORRECT ANSWERS✅ 180 BAPCPA made Chapter 12 a permanent part of the Bankruptcy Code. CORRECT ANSWERS✅ True Bankruptcy Quizzes and answers Which of the bankruptcy proceedings is the most complex, time-consuming, and expensive? CORRECT ANSWERS✅ Chapter 11 After which type of bankruptcy proceeding will a business cease to exist? CORRECT ANSWERS✅ Chapter 7 Under which Chapters are debtors considered "debtors in possession" as defined in the Bankruptcy Code? Choose as many as apply. CORRECT ANSWERS✅ Chapter 11 Chapter 12 The Chapter 11 debtor in possession is given the turn over and avoidance powers of a bankruptcy trustee. CORRECT ANSWERS✅ True No creditor or other party in interest may file a competing plan in a Chapter 9 bankruptcy case. CORRECT ANSWERS✅ True