BLAW Final Exam ACTUAL QUESTIONS
AND CORRECT ANSWERS
With respect to debtors, the main goal of bankruptcy law is to - CORRECT
ANSWERS provide a new start without creditors' claims.
With respect to creditors, the main goal of bankruptcy law is to - CORRECT
ANSWERS ensure equitable treatment in the competition for debtor
assets.
All bankruptcy proceedings are held in - CORRECT ANSWERS federal
bankruptcy courts.
Dana operates Energy Inc., a corporation in the fuel-supply business. Dana
wants to create a plan under which the firm pays a portion of its debts, is
discharged of the remainder, and is allowed to continue in business. Energy
should file a petition in bankruptcy for relief through - CORRECT ANSWERS
a liquidation.
Chapter 7 of the Bankruptcy Code provides for - CORRECT ANSWERS
liquidation proceedings
Under any chapter of the Bankruptcy Code, failing to file the necessary
documents with the debtor's petition for relief can result in - CORRECT
ANSWERS the dismissal of the petition.
A voluntary petition in bankruptcy must include - CORRECT ANSWERS
a list of the debtor's creditors and the amount of the debt owed to each.
,In addition to financial statements, each voluntary petition in bankruptcy must
include - CORRECT ANSWERS a certificate proving the receipt of
credit counseling
Under the Bankruptcy Code, the means test is used to - CORRECT ANSWERS
keep higher-income people from abusing the bankruptcy process
In a Chapter 7 bankruptcy, on a finding that the use of Chapter 7 would
constitute substantial abuse, the court is most likely to - CORRECT ANSWERS
dismiss the debtor's petition
If a voluntary petition in bankruptcy is found to be proper, the court's entry of
an order for relief - CORRECT ANSWERS puts into place an automatic
stay
To force a debtor with twelve or more creditors into bankruptcy proceedings, at
least three of those who join in the petition must have unsecured claims that add
up to at least - CORRECT ANSWERS $15,775.
An involuntary bankruptcy occurs when a debtor - CORRECT ANSWERS
is forced into bankruptcy proceedings by his or her creditors
Gina's creditors attempt to force her into bankruptcy proceedings. The creditors
will be unsuccessful if Gina - CORRECT ANSWERS is a farmer
Under Chapter 7, a debtor who fails to appear at the creditors' meeting when
required may be - CORRECT ANSWERS denied a discharge of his or
debts in the bankruptcy proceeding
A bankruptcy trustee is accountable for - CORRECT ANSWERS
administering the debtor's estate
, Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her
property and reduces it to money for distribution. Zhen is - CORRECT
ANSWERS a bankruptcy trustee
A bankruptcy trustee must determine whether the debtor's financial situation
warrants relief based on a comparison of the debtor's income with - CORRECT
ANSWERS the income of other families in the same state
Under Chapter 7, to be entitled to receive a portion of a debtor's estate, each
creditor must file a proof of claim with the bankruptcy court within ninety days
of - CORRECT ANSWERS the creditors' meeting
Under Chapter 7, creditors are paid in a certain order of priority. The highest-
priority class comprises claims for - CORRECT ANSWERS domestic
support
Under Chapter 7, once the proceeds of the bankruptcy estate have been
distributed, the debtor's remaining debts - CORRECT ANSWERS are
discharged
Under Chapter 7, once the proceeds have been distributed, the obligations of the
debtor most likely to be discharged are - CORRECT ANSWERS none of
the choices
Under Chapter 7, a discharge is most likely to be denied if the debtor -
CORRECT ANSWERS all of the choices
Under Chapter 7, the primary effect of a discharge is to - CORRECT
ANSWERS void a judgment on a discharged debt and prohibit an action
to collect it
AND CORRECT ANSWERS
With respect to debtors, the main goal of bankruptcy law is to - CORRECT
ANSWERS provide a new start without creditors' claims.
With respect to creditors, the main goal of bankruptcy law is to - CORRECT
ANSWERS ensure equitable treatment in the competition for debtor
assets.
All bankruptcy proceedings are held in - CORRECT ANSWERS federal
bankruptcy courts.
Dana operates Energy Inc., a corporation in the fuel-supply business. Dana
wants to create a plan under which the firm pays a portion of its debts, is
discharged of the remainder, and is allowed to continue in business. Energy
should file a petition in bankruptcy for relief through - CORRECT ANSWERS
a liquidation.
Chapter 7 of the Bankruptcy Code provides for - CORRECT ANSWERS
liquidation proceedings
Under any chapter of the Bankruptcy Code, failing to file the necessary
documents with the debtor's petition for relief can result in - CORRECT
ANSWERS the dismissal of the petition.
A voluntary petition in bankruptcy must include - CORRECT ANSWERS
a list of the debtor's creditors and the amount of the debt owed to each.
,In addition to financial statements, each voluntary petition in bankruptcy must
include - CORRECT ANSWERS a certificate proving the receipt of
credit counseling
Under the Bankruptcy Code, the means test is used to - CORRECT ANSWERS
keep higher-income people from abusing the bankruptcy process
In a Chapter 7 bankruptcy, on a finding that the use of Chapter 7 would
constitute substantial abuse, the court is most likely to - CORRECT ANSWERS
dismiss the debtor's petition
If a voluntary petition in bankruptcy is found to be proper, the court's entry of
an order for relief - CORRECT ANSWERS puts into place an automatic
stay
To force a debtor with twelve or more creditors into bankruptcy proceedings, at
least three of those who join in the petition must have unsecured claims that add
up to at least - CORRECT ANSWERS $15,775.
An involuntary bankruptcy occurs when a debtor - CORRECT ANSWERS
is forced into bankruptcy proceedings by his or her creditors
Gina's creditors attempt to force her into bankruptcy proceedings. The creditors
will be unsuccessful if Gina - CORRECT ANSWERS is a farmer
Under Chapter 7, a debtor who fails to appear at the creditors' meeting when
required may be - CORRECT ANSWERS denied a discharge of his or
debts in the bankruptcy proceeding
A bankruptcy trustee is accountable for - CORRECT ANSWERS
administering the debtor's estate
, Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her
property and reduces it to money for distribution. Zhen is - CORRECT
ANSWERS a bankruptcy trustee
A bankruptcy trustee must determine whether the debtor's financial situation
warrants relief based on a comparison of the debtor's income with - CORRECT
ANSWERS the income of other families in the same state
Under Chapter 7, to be entitled to receive a portion of a debtor's estate, each
creditor must file a proof of claim with the bankruptcy court within ninety days
of - CORRECT ANSWERS the creditors' meeting
Under Chapter 7, creditors are paid in a certain order of priority. The highest-
priority class comprises claims for - CORRECT ANSWERS domestic
support
Under Chapter 7, once the proceeds of the bankruptcy estate have been
distributed, the debtor's remaining debts - CORRECT ANSWERS are
discharged
Under Chapter 7, once the proceeds have been distributed, the obligations of the
debtor most likely to be discharged are - CORRECT ANSWERS none of
the choices
Under Chapter 7, a discharge is most likely to be denied if the debtor -
CORRECT ANSWERS all of the choices
Under Chapter 7, the primary effect of a discharge is to - CORRECT
ANSWERS void a judgment on a discharged debt and prohibit an action
to collect it
