Chapter 27 - Bankruptcy and Insolvency Exam Questions with Complete Solutions.

Chapter 27 - Bankruptcy and Insolvency Exam Questions with Complete Solutions trustee in bankruptcy - Correct Answers: the person who has legal responsibility under the BIA for administering bankruptcies and proposals estate - Correct Answers: the collective term for the assets of a bankrupt individual or corporation insolvent - Correct Answers: unable to meet financial obligations as they become due or having insufficient assets, if liquidated to meet financial obligations debtor in possession (DIP) financing - Correct Answers: secured credit provided to companies during the reorganization process with priority over existing secured creditors bankrupt - Correct Answers: the legal status of a debtor who has made an assignment or against whom a bankruptcy order has been issued assignment in bankruptcy - Correct Answers: the debtor's voluntary assignment to the trustee in bankruptcy of legal title to the debtor's property for the benefit of creditors bankruptcy order - Correct Answers: an order of the court resulting in a person being declared bankrupt act of bankruptcy - Correct Answers: one of a list of specified acts that the debtor must commit before the court will grant a bankruptcy order inspector - Correct Answers: a person appointed by creditors to act on their behalf and supervise the actions of the trustee in bankrupty transfers at undervalue - Correct Answers: transfers of property or provision of services for less than fair market value arm's length - Correct Answers: people who are independent of each other and not related bankruptcy offences - Correct Answers: criminal acts defined by the BIA in relation to the bankruptcy process proof of claim - Correct Answers: a formal notice provided by the creditor to the trustee of the amount owed and the nature of the debt preferred creditors - Correct Answers: certain unsecured creditors who are given priority over other unsecured creditors in the bankruptcy distribution discharge of bankruptcy - Correct Answers: an ordr release the debtor from bankrupt status and from most remaining debts proposal - Correct Answers: a procedure that allows a debtor to restructure its debt to avoid bankruptcy with the goal of restructuring debts so the debtor can pay them Division I proposals - Correct Answers: available to individuals and corporations with no limit on the total amount of debt that is owed division II proposals - Correct Answers: available to individuals with total debts less than $250,000 preferred creditors - Correct Answers: certain unsecured creditors who are given priority over other unsecured creditors in the bankruptcy distribution