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Exam 38: Bankruptcy

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Question 21

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Which chapter of the Bankruptcy Code allows for the adjustment of debts of an individual with regular income?

A) Chapter 7
B) Chapter 11
C) Chapter 12
D) Chapter 13

E) A) and C)
F) A) and D)

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Question 22

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Chapter 12 of the Bankruptcy Code applies to individuals or couples engaged in farming if 50 percent of their gross income is from farming and aggregate debts do not exceed $1 million.

A) True
B) False

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Question 23

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No private employer may terminate the employment of or discriminate with respect to employment against an individual solely because he is or has been a debtor under the Bankruptcy Code.

The 1994 amendments to the Bankruptcy Code require that the U.S. Judicial Conference adjust for inflation the dollar amounts of certain provisions of the Code every:

Edward's Excursions Inc. filed for Chapter 7 bankruptcy. It has $80,000 in equity and has the following debts outstanding: $50,000 to Arthur secured by a boat worth $25,000. $30,000 to Bradley secured by a truck worth $30,000. $20,000 to Clarence unsecured. The month before Edward closed and filed for bankruptcy, his employees earned $4,000 but did not get paid. Edward's owes $4,000 in back taxes. In the process of administering the estate, the trustee paid $5,000 in attorney fees. In what order will these claims be paid?

An involuntary petition in bankruptcy:

A trustee in bankruptcy may avoid which of the following?

All but which one of the following is a purpose of bankruptcy legislation?

A statutory lien arises solely by force of statute and includes a security interest or judicial lien.

Once a Chapter 13 plan has been confirmed, it may:

An assignment for the benefit of creditors requires the creditors' consent

A Chapter 13 plan of reorganization may include all but which one of the following?

A debtor has the option of using either federal or state exemptions; however, the 2005 Act imposes limits on the use of a state homestead exemption to the extent that the homestead was obtained through fraudulent conversion of nonexempt assets at any time before filing the bankruptcy petition.

Stephens, an employee of bankrupt ABC Company, would be able to receive her $2,000 in unpaid wages earned within 90 days before ABC's filing of the bankruptcy petition and $2,000 in contributions to her employee benefit plans, for a total of $4,000 before any money is paid to Ramsdell, a consumer, to compensate him for a deposit paid to the company for goods which were never delivered because of the company's going bankrupt.

A debtor who files for bankruptcy can keep up to $1,550 in jewelry and all social security, veteran's, and disability benefits under the exemptions found in the Bankruptcy Code.

A composition of creditors is a bankruptcy form of relief under Chapter 13 of the Bankruptcy Code.

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

A receiver is a disinterested person who collects and preserves the debtor's assets and income and disposes of them at the direction of the court which appointed the receiver.

A writ of execution is issued after a judgment against the debtor is entered in court.

Chapter 5 involves liquidation, whereas Chapters 7, 11, 12, and 13 involve reorganization and adjustment of debts.