CPA REG - BUSINESS LAW SECTION
1. Is there a trustee appointed for CH 7 Bankruptcy?
*Answer√√ yes
2. Is there a trustee appointed for CH 11 Bankruptcy?
*Answer√√ no (not required but court may appoint)
3. Is there a trustee appointed for CH 13 Bankruptcy?
*Answer√√ yes
4. What is CH 7 Bankruptcy?
*Answer√√ liquidation
5. What is a CH 11 Bankruptcy?
*Answer√√ reorganization
6. Which four groups of people are not allowed to file CH 7?
*Answer√√ Railroads, insurance companies, banks, savings institutions
7. Which four groups of people are not allowed to file CH 11 bankruptcy?
*Answer√√ brokers, insurance companies, banks, savings institutions
,8. Which types of businesses can file CH 7?
*Answer√√ individuals, partnerships, corporations
9. Which types of businesses can file CH 11?
*Answer√√ individuals, partnerships, corporations
10. Which types of businesses can file CH 13?
*Answer√√ individuals
11. What is the purpose of an automatic stay?
*Answer√√ stops all collection ettorts by creditors
12. How long does a debtor have to file a list of creditors owed, schedule of
assets and liabilities, statement of affairs?
*Answer√√ 45 days
13. Which of these can be filed voluntarily: CH 7, CH 11, CH 13?
*Answer√√ Ch 7 and CH 11
14. Can spouses file voluntary bankruptcy jointly?
*Answer√√ yes
,15. In an involuntary CH 7 or Ch 11 bankruptcy, how many creditors must join
together and how much must they be owed in aggregate?*Answer√√ debtor has
fewer than 12 creditors - one creditor must be owed $16,750; more than 12 creditors - three creditors owed
$16,750 in aggregate
16. When does the order for relief occur in a voluntary bankruptcy case?
*Answer√√ imme-diately
17. When does the order for relief occur in an involuntary bankruptcy case?
*Answer√√ after 20 days if the debtor does not object
18. What is the time called between the involuntary petition and the order for
relief called?
*Answer√√ involuntary case gap
19. What property is all included in the bankruptcy estate?*Answer√√ real and
personal property plus divorce, interest, inheritance, and insurance (within 180 days after filing)
20. Who does the bankruptcy trustee all have priority over?*Answer√√ all creditors
except those with prior perfected security interests or judicial liens
, 21. What is a preferential payment?
*Answer√√ debtor finding a way to give the creditor more than they would have by going through the
normal bankruptcy process
22. How many years must pass before a debtor is eligible for another discharge
of debt?
*Answer√√ 8
23. What types of debts of an individual are not discharged under CH 7 or
11?
*Answer√√ FATWED; Fraud, Alimony, Taxes due within 3 years, Willful and Malicious injury, Educational Loans,
Debts undisclosed
24. What is the order of distribution of a debtor's estate?
*Answer√√ secured creditors, priority creditors (9 categories SAG WEG CTI), unsecured creditors
25. What is the order for SAG WEG CTI?
*Answer√√ Support, Administrative expenses, Gap Claims, Wage Claims (up to 13,650), Employee
Benefits (up to 13,650), grain farmers, Consumer Deposits, Tax Claims, Injury Claims
1. Is there a trustee appointed for CH 7 Bankruptcy?
*Answer√√ yes
2. Is there a trustee appointed for CH 11 Bankruptcy?
*Answer√√ no (not required but court may appoint)
3. Is there a trustee appointed for CH 13 Bankruptcy?
*Answer√√ yes
4. What is CH 7 Bankruptcy?
*Answer√√ liquidation
5. What is a CH 11 Bankruptcy?
*Answer√√ reorganization
6. Which four groups of people are not allowed to file CH 7?
*Answer√√ Railroads, insurance companies, banks, savings institutions
7. Which four groups of people are not allowed to file CH 11 bankruptcy?
*Answer√√ brokers, insurance companies, banks, savings institutions
,8. Which types of businesses can file CH 7?
*Answer√√ individuals, partnerships, corporations
9. Which types of businesses can file CH 11?
*Answer√√ individuals, partnerships, corporations
10. Which types of businesses can file CH 13?
*Answer√√ individuals
11. What is the purpose of an automatic stay?
*Answer√√ stops all collection ettorts by creditors
12. How long does a debtor have to file a list of creditors owed, schedule of
assets and liabilities, statement of affairs?
*Answer√√ 45 days
13. Which of these can be filed voluntarily: CH 7, CH 11, CH 13?
*Answer√√ Ch 7 and CH 11
14. Can spouses file voluntary bankruptcy jointly?
*Answer√√ yes
,15. In an involuntary CH 7 or Ch 11 bankruptcy, how many creditors must join
together and how much must they be owed in aggregate?*Answer√√ debtor has
fewer than 12 creditors - one creditor must be owed $16,750; more than 12 creditors - three creditors owed
$16,750 in aggregate
16. When does the order for relief occur in a voluntary bankruptcy case?
*Answer√√ imme-diately
17. When does the order for relief occur in an involuntary bankruptcy case?
*Answer√√ after 20 days if the debtor does not object
18. What is the time called between the involuntary petition and the order for
relief called?
*Answer√√ involuntary case gap
19. What property is all included in the bankruptcy estate?*Answer√√ real and
personal property plus divorce, interest, inheritance, and insurance (within 180 days after filing)
20. Who does the bankruptcy trustee all have priority over?*Answer√√ all creditors
except those with prior perfected security interests or judicial liens
, 21. What is a preferential payment?
*Answer√√ debtor finding a way to give the creditor more than they would have by going through the
normal bankruptcy process
22. How many years must pass before a debtor is eligible for another discharge
of debt?
*Answer√√ 8
23. What types of debts of an individual are not discharged under CH 7 or
11?
*Answer√√ FATWED; Fraud, Alimony, Taxes due within 3 years, Willful and Malicious injury, Educational Loans,
Debts undisclosed
24. What is the order of distribution of a debtor's estate?
*Answer√√ secured creditors, priority creditors (9 categories SAG WEG CTI), unsecured creditors
25. What is the order for SAG WEG CTI?
*Answer√√ Support, Administrative expenses, Gap Claims, Wage Claims (up to 13,650), Employee
Benefits (up to 13,650), grain farmers, Consumer Deposits, Tax Claims, Injury Claims
