D216 Business Law for Accountings (WGU)
D216 Business Law for Accountings (WGU)
Study online at https://quizlet.com/_ew74f8
1. What is the role of a trustee under Chapter 7 Bankrupt- To sell the nonexempt as-
cy? sets of the debtor and
distribute the proceeds to
creditors
2. A couple filed for Chapter 7 Bankruptcy. They owe The couple
$115,000 to a mortgage company on their main res-
idence, $34,000 to an auto financer on their car, and
$22,000 to a bank on credit cards.
Who is the petitioner?
3. Who is a consumer-debtor? A debtor whose debts re-
sult primarily from the
purchase of goods for per-
sonal, family, or household
use
4. Judgment was entered against a customer in the Order for garnishment
amount of $15,000 for unpaid debt. The customer
does not have assets to pay the judgment in full. The
customer owns a house with approximately $3,000 of
equity, owns a car worth $12,000, and has approxi-
mately $7,000 in a bank account.
Which type of relief would allow the creditor to seize
the money in the customer's bank account?
5. What is the function of an order for writ of execution? A court order issued
post-judgment to seize the
debtor's property in the
debtor's possession.
, D216 Business Law for Accountings (WGU)
D216 Business Law for Accountings (WGU)
Study online at https://quizlet.com/_ew74f8
6. A company contracts to make improvements to a fami- Yes, they can recover pay-
ly home. The total price, including labor and materials, ment when the family
is $150,000. The family home was on an installment home is sold because it
payment agreement but did not make all payments is entitled to a mechanic's
under the agreement. The family paid the company lien against the home
a total of $50,000. Two years later, the family put the
house on the market to be sold.
Can the company take action to collect the debt?
7. What does a surety's right of subrogation do? Entitles the surety to the
rights a creditor would
have in bankruptcy
8. What is a bad faith bankruptcy filing under Chapter 7? Filing for Chapter 7 Liq-
uidation after dismissal of
two or more bankruptcy
petitions during the prior
year
9. A debtor owes $124,000 on a home mortgage, $4,300 Domestic-support debt
on a credit card, $11,500 in medical debt, and $6,100
domestic-support to the debtor's former spouse.
Which debt is an exception to the automatic stay?
10. A debtor owes $5,000 on a home mortgage, $2,000 The debtor is eligible to
on a car note, and $500 on a credit card. The debtor declare bankruptcy be-
is having financial difficulties and is late by 60 days in cause the debtor is oblig-
making payments on the debt as it becomes due. ated to creditors.
Which bankruptcy filing is appropriate for the debtor?
D216 Business Law for Accountings (WGU)
Study online at https://quizlet.com/_ew74f8
1. What is the role of a trustee under Chapter 7 Bankrupt- To sell the nonexempt as-
cy? sets of the debtor and
distribute the proceeds to
creditors
2. A couple filed for Chapter 7 Bankruptcy. They owe The couple
$115,000 to a mortgage company on their main res-
idence, $34,000 to an auto financer on their car, and
$22,000 to a bank on credit cards.
Who is the petitioner?
3. Who is a consumer-debtor? A debtor whose debts re-
sult primarily from the
purchase of goods for per-
sonal, family, or household
use
4. Judgment was entered against a customer in the Order for garnishment
amount of $15,000 for unpaid debt. The customer
does not have assets to pay the judgment in full. The
customer owns a house with approximately $3,000 of
equity, owns a car worth $12,000, and has approxi-
mately $7,000 in a bank account.
Which type of relief would allow the creditor to seize
the money in the customer's bank account?
5. What is the function of an order for writ of execution? A court order issued
post-judgment to seize the
debtor's property in the
debtor's possession.
, D216 Business Law for Accountings (WGU)
D216 Business Law for Accountings (WGU)
Study online at https://quizlet.com/_ew74f8
6. A company contracts to make improvements to a fami- Yes, they can recover pay-
ly home. The total price, including labor and materials, ment when the family
is $150,000. The family home was on an installment home is sold because it
payment agreement but did not make all payments is entitled to a mechanic's
under the agreement. The family paid the company lien against the home
a total of $50,000. Two years later, the family put the
house on the market to be sold.
Can the company take action to collect the debt?
7. What does a surety's right of subrogation do? Entitles the surety to the
rights a creditor would
have in bankruptcy
8. What is a bad faith bankruptcy filing under Chapter 7? Filing for Chapter 7 Liq-
uidation after dismissal of
two or more bankruptcy
petitions during the prior
year
9. A debtor owes $124,000 on a home mortgage, $4,300 Domestic-support debt
on a credit card, $11,500 in medical debt, and $6,100
domestic-support to the debtor's former spouse.
Which debt is an exception to the automatic stay?
10. A debtor owes $5,000 on a home mortgage, $2,000 The debtor is eligible to
on a car note, and $500 on a credit card. The debtor declare bankruptcy be-
is having financial difficulties and is late by 60 days in cause the debtor is oblig-
making payments on the debt as it becomes due. ated to creditors.
Which bankruptcy filing is appropriate for the debtor?
