BUL 3320 Final Exam Questions with
Correct Answers
Domestic Support Obligations - ANSWER-Cannot be discharged (court order that
relieves a debtor of the legal liability to pay his debts that were not paid in the
bankruptcy proceedings) in bankruptcy. Applies to alimony, maintenance, and child
support payments resulting from a divorce decree or separation agreement.
Bankruptcy Trustee when appointed - ANSWER-Must be appointed in Ch. 7,
Chapter 12 Farmer or Fisher, and Chapter 13 bankruptcy cases. Trustee may be
appointed in a Chapter 11 case upon a showing of fraud, dishonesty, incompetence
of the debtor by current management.
Involuntary Petitions - ANSWER-A petition filed by creditors of a debtor that alleges
that the debtor is not paying his or her debts as they become due.
This can be filed in Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Payment to unsecured creditors - ANSWER-Your disposable income first goes to
your secured and priority creditors. Your unsecured creditors share any remaining
amount. Disposable income is what you have left over at the end of every month
after you pay your reasonable and necessary living expenses.
Bankruptcy Courts - ANSWER-Special federal courts that hear and decide
bankruptcy cases.
1 for every US district court (94 total), appointed for 14 years.
Bankruptcy Attorney Certification - ANSWER-2005 act requires an attorney cert
whereby an attorney who represents a client in bankruptcy must certify the accuracy
of the information contained in the bankruptcy petition and the schedules, under
penalty of perjury. If any factual discrepancies are found, the attorney is subject to
fines.
Pre and Post Petition Counseling - ANSWER-A document filed with a bankruptcy
court that starts a bankruptcy proceeding. They're required to receive an pro and
post petitions. 180 days before filing bankruptcy.
Individuals filing for bankruptcy must receive prepetition counseling within 180 days
prior to filing a petition for bankruptcy.
Before an individual debtor receives a discharge in a Chapter 7 or Chapter 13
bankruptcy the debtor must receive postpetition counseling by attending a personal
financial management course approved by the U.S. Trustee.
, Homestead Exemptions - ANSWER-Equity in a debtor's home that the debtor is
permitted to retain.
Mean's Test - ANSWER-A bankruptcy rule that applies to a debtor who has a
median family income that exceeds the state's median family income for families the
same size as the debtor's family. A debtor in this category qualifies for Chapter 7
bankruptcy if the debtor has disposable income below an amount determined by
bankruptcy law, but does not qualify for Chapter 7 bankruptcy if he or she has
disposable income above an amount determined by bankruptcy law.
A primary purpose of the new Chapter 7 Federal Bankruptcy Law - ANSWER-A form
of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is
distributed to the creditors, and any unpaid debts are discharged.
Abusive filing an act established to determine whether a debtor should be granted
relief under ch. 7.
Required types on income filing a Chapter 13 bankruptcy - ANSWER-Individual with
regular income: An individual whose income is sufficiently stable and regular to
enable the individual to make payments under a Chapter 13 plan.
Consumer Debt: debts incurred by an individual for personal, family, or household
purposes.
Extension: Provides a longer period of time the debtor to pay his or her debts.
Composition: Provides for the reduction of a debtor's debts.
Student Loans - ANSWER-Congress has made it difficult to have their student loans
discharged in bankruptcy. Loans cannot be discharged unless undue hardship to the
debtor.
Chapter 11 and Union Agreements - ANSWER-A plan that sets forth a proposed
new capital structure for a debtor to assume when it emerges from chapter 11
reorganization bankruptcy.
The debtor and the reps of union can voluntarily agree to modification of collective
bargaining. Debtor must be in good faith of reps and retirees.
Chapter 7 Bankruptcy Liquidation, Reorganization or Adjustment - ANSWER-A form
of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is
distributed to the creditors, and any unpaid debts are discharged.
Agency/ Statute of Frauds - ANSWER-The principal-agent relationship.
Exclusive Agency Principal: A contract a principal and agent enter into that says the
principal cannot employ any agent other than the exclusive agent.
Dual Agency - ANSWER-Dual agency occurs when an agent acts for two or more
different principals in the same transaction. This practice is generally prohibited
unless all the parties involved in the transaction agree to it.
Termination of Agency - ANSWER-There are several grounds on which the agent's
authority may be terminated: revocation by the principal, renunciation by the agent,
Correct Answers
Domestic Support Obligations - ANSWER-Cannot be discharged (court order that
relieves a debtor of the legal liability to pay his debts that were not paid in the
bankruptcy proceedings) in bankruptcy. Applies to alimony, maintenance, and child
support payments resulting from a divorce decree or separation agreement.
Bankruptcy Trustee when appointed - ANSWER-Must be appointed in Ch. 7,
Chapter 12 Farmer or Fisher, and Chapter 13 bankruptcy cases. Trustee may be
appointed in a Chapter 11 case upon a showing of fraud, dishonesty, incompetence
of the debtor by current management.
Involuntary Petitions - ANSWER-A petition filed by creditors of a debtor that alleges
that the debtor is not paying his or her debts as they become due.
This can be filed in Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Payment to unsecured creditors - ANSWER-Your disposable income first goes to
your secured and priority creditors. Your unsecured creditors share any remaining
amount. Disposable income is what you have left over at the end of every month
after you pay your reasonable and necessary living expenses.
Bankruptcy Courts - ANSWER-Special federal courts that hear and decide
bankruptcy cases.
1 for every US district court (94 total), appointed for 14 years.
Bankruptcy Attorney Certification - ANSWER-2005 act requires an attorney cert
whereby an attorney who represents a client in bankruptcy must certify the accuracy
of the information contained in the bankruptcy petition and the schedules, under
penalty of perjury. If any factual discrepancies are found, the attorney is subject to
fines.
Pre and Post Petition Counseling - ANSWER-A document filed with a bankruptcy
court that starts a bankruptcy proceeding. They're required to receive an pro and
post petitions. 180 days before filing bankruptcy.
Individuals filing for bankruptcy must receive prepetition counseling within 180 days
prior to filing a petition for bankruptcy.
Before an individual debtor receives a discharge in a Chapter 7 or Chapter 13
bankruptcy the debtor must receive postpetition counseling by attending a personal
financial management course approved by the U.S. Trustee.
, Homestead Exemptions - ANSWER-Equity in a debtor's home that the debtor is
permitted to retain.
Mean's Test - ANSWER-A bankruptcy rule that applies to a debtor who has a
median family income that exceeds the state's median family income for families the
same size as the debtor's family. A debtor in this category qualifies for Chapter 7
bankruptcy if the debtor has disposable income below an amount determined by
bankruptcy law, but does not qualify for Chapter 7 bankruptcy if he or she has
disposable income above an amount determined by bankruptcy law.
A primary purpose of the new Chapter 7 Federal Bankruptcy Law - ANSWER-A form
of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is
distributed to the creditors, and any unpaid debts are discharged.
Abusive filing an act established to determine whether a debtor should be granted
relief under ch. 7.
Required types on income filing a Chapter 13 bankruptcy - ANSWER-Individual with
regular income: An individual whose income is sufficiently stable and regular to
enable the individual to make payments under a Chapter 13 plan.
Consumer Debt: debts incurred by an individual for personal, family, or household
purposes.
Extension: Provides a longer period of time the debtor to pay his or her debts.
Composition: Provides for the reduction of a debtor's debts.
Student Loans - ANSWER-Congress has made it difficult to have their student loans
discharged in bankruptcy. Loans cannot be discharged unless undue hardship to the
debtor.
Chapter 11 and Union Agreements - ANSWER-A plan that sets forth a proposed
new capital structure for a debtor to assume when it emerges from chapter 11
reorganization bankruptcy.
The debtor and the reps of union can voluntarily agree to modification of collective
bargaining. Debtor must be in good faith of reps and retirees.
Chapter 7 Bankruptcy Liquidation, Reorganization or Adjustment - ANSWER-A form
of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is
distributed to the creditors, and any unpaid debts are discharged.
Agency/ Statute of Frauds - ANSWER-The principal-agent relationship.
Exclusive Agency Principal: A contract a principal and agent enter into that says the
principal cannot employ any agent other than the exclusive agent.
Dual Agency - ANSWER-Dual agency occurs when an agent acts for two or more
different principals in the same transaction. This practice is generally prohibited
unless all the parties involved in the transaction agree to it.
Termination of Agency - ANSWER-There are several grounds on which the agent's
authority may be terminated: revocation by the principal, renunciation by the agent,
