Deck 19: Bankruptcy and Environmental Law

Question 1

Which of the following statements is true regarding bankruptcy law?

A) Bankruptcy law favors the debtor.
B) Bankruptcy law favors the creditor.
C) Bankruptcy law strives to balance the rights of the debtor and the creditor.
D) None of these choices is correct.

Answer 1

C

Question 2

Bankruptcy relief is provided under which of the following?

A) Federal law
B) State law
C) Common law
D) Local law

Answer 2

A

Question 3

Susan files for bankruptcy. Her case will be heard in which of the following?

A) A county court
B) A state court
C) A federal court
D) All of these choices are correct.

Answer 3

C

Question 4

Today, debtors are likely to be

A) imprisoned.
B) forced into involuntary servitude.
C) whipped.
D) allowed to petition for bankruptcy relief.

Question 5

The Bankruptcy Code has chapters.

A) three
B) five
C) eight
D) thirteen

Question 6

Bankruptcy courts follow the

A) Federal Rules of Bankruptcy Procedure.
B) Federal Rules of Civil Procedure.
C) Federal Rules of Criminal Procedure.
D) Federal Rules of Court Procedure.

Question 7

Chapter 11 bankruptcy provides for which of the following?

A) Adjustment of debts of a municipality
B) Reorganization of a corporation
C) Liquidation proceedings
D) Adjustment of farmers' debts

Question 8

Bankruptcy court judges are appointed for terms of years.

A) ten
B) eleven
C) fourteen
D) twenty

Question 9

Congressional authority to provide bankruptcy relief for debtors is based on which of the following?

A) The United States Constitution
B) The Bill of Rights
C) The state constitution
D) The Fifth Amendment

Question 10

Bankruptcy is heard in the court.

A) federal debtor's
B) federal bankruptcy
C) state bankruptcy
D) state supreme

Question 11

Which of the following statements is not correct regarding the Bankruptcy Code?

A) The Bankruptcy Code has eight chapters.
B) The Bankruptcy Code is contained in

Question 12

The 2005 Bankruptcy Reform Act was significant because

A) it greatly decreased individual bankruptcy filings.
B) it greatly increased individual bankruptcy filings.
C) it made individual bankruptcy filings illegal.
D) it made it easier to make individual bankruptcy filings.

Question 13

Bankruptcy courts are under the authority of the courts.

A) state district
B) state superior
C) state trial
D) federal district

Question 14

Since the economic downturn in 2008, individual bankruptcy filings have

A) increased.
B) decreased.
C) become illegal.
D) become easier.

Question 15

Bankruptcy filings in the United States were significantly reduced by the

A) Bankruptcy Reform Act.
B) Federal Bankruptcy Act.
C) National Bankruptcy Act.
D) Bankruptcy Reduction Act.

Question 16

Goals of bankruptcy law include which of the following?

A) To provide relief and protection to debtors
B) To provide a fair means of distributing a debtor's assets among creditors
C) To pay all creditors in full
D) To provide relief and protection to debtors and to provide a fair means of distributing a debtor's assets among creditors

Question 17

Which of the following statements is correct regarding the Bankruptcy Code?

A) The Bankruptcy Code has eight chapters.
B) The Bankruptcy Code is contained in

Question 18

Which of the following statements is true regarding paralegals and bankruptcy law?

A) There is little use for paralegals in bankruptcy law.
B) There will continue to be a demand for paralegals in bankruptcy law.
C) There has never been a demand for paralegals in bankruptcy law.
D) There is a decreasing demand for paralegals in bankruptcy law.

Question 19

The property that a bankruptcy filer is allowed to keep so as to have a fresh start is known as which of the following?

A) Restart property
B) Exempt property
C) Excluded property
D) Untouchable property

Question 20

Chapter 7 bankruptcy provides for which of the following?

A) Adjustment of debts of a municipality
B) Reorganization of a corporation
C) Liquidation proceedings
D) Adjustment of farmers' debts

Question 21

An individual whose debts are primarily consumer debts is known as a

A) purchaser-debtor.
B) consumer-debtor.
C) common-debtor.
D) bankrupt-debtor.

Question 22

Important details to the bankruptcy process are provided by the debtor in which of the following?

A) Statement of intention
B) Statement of fact
C) Statement of financial affairs
D) Statement of bankruptcy

Question 23

Adjustments of debts by persons with regular incomes is governed by which of the following?

A) Chapter 7 of the Bankruptcy Code
B) Chapter 11 of the Bankruptcy Code
C) Chapter 13 of the Bankruptcy Code
D) None of these choices is correct.

Question 24

Abigail is filing a voluntary petition for bankruptcy. She must provide proof that she

A) is unemployed.
B) is actively seeking employment.
C) has received credit counseling in the past 180 days.
D) does not use illegal drugs.

Question 25

A is the party, whether a person or a business, liable for debts and the subject of the bankruptcy proceedings.

A) debtor
B) debtee
C) creditor
D) payee

Question 26

Which of the following terms refers to a debtor being relieved of the obligation to pay debts?

A) Discharged
B) Extinguished
C) Discharged or extinguished
D) Forgotten

Question 27

Secured debt gives the creditor, called a creditor, the right to attempt to get control of the property, such as a house, a car, or other assets, that the debtor originally offered to the lender to obtain a loan.

A) liable
B) secured
C) primary
D) legal

Question 28

Which of the following parties cannot be a debtor in a liquidation bankruptcy?

A) A husband and wife
B) A private individual
C) An insurance company
D) A grocery store

Question 29

A is the party owed debt in bankruptcy proceedings.

A) debtor
B) debtee
C) creditor
D) payee

Question 30

The debtor in a bankruptcy turns all assets over to a bankruptcy trustee.

A) Chapter 7
B) Chapter 9
C) Chapter 11
D) Chapter 12
E) Chapter 13

Question 31

The test is meant to keep upper-income people from abusing the bankruptcy process by filing for Chapter 7 bankruptcy.

A) means
B) income
C) wealthy
D) capability

Question 32

Once the initial bankruptcy is filed, litigation by creditors is suspended. This is called a(n)

A) automatic suspension.
B) automatic stay.
C) judicial stay.
D) judicial suspension.

Question 33

A declaration made by a debtor concerning plans for dealing with consumer debts that are secured by property of the debtor is called a statement of

A) intention.
B) debt.
C) bankruptcy.
D) credit.

Question 34

Debt that is "backed" by a mortgage, a pledge of collateral, or another lien is called which of the following?

A) Real debt
B) Liable debt
C) Credited debt
D) Secured debt

Question 35

Which of the following is true of reorganizations?

A) Reorganizations are governed by Chapter 7 of the Bankruptcy Code.
B) Reorganizations are governed by Chapter 11 of the Bankruptcy Code.
C) Reorganizations are governed by Chapter 13 of the Bankruptcy Code.
D) Reorganizations are not governed by the Bankruptcy Code.

Question 36

Ordinary or straight bankruptcy is also called

A) liquidation.
B) reorganization.
C) adjustment of debts.
D) discharge.

Question 37

Child support payments are an example of which of the following?

A) Nondischargeable debts
B) Dischargeable debts
C) Exempt debts
D) Excluded debts

Question 38

Chapter 13 bankruptcy provides for which of the following?

A) Adjustment of debts of persons with regular incomes
B) Reorganization of a corporation
C) Liquidation proceedings
D) None of these choices is correct.

Question 39

Which of the following is true of liquidation proceedings?

A) Liquidation proceedings are governed by Chapter 7 of the Bankruptcy Code.
B) Liquidation proceedings are governed by Chapter 11 of the Bankruptcy Code.
C) Liquidation proceedings are governed by Chapter 13 of the Bankruptcy Code.
D) Liquidation proceedings are not governed by the Bankruptcy Code.

Question 40

Educational loans are an example of which of the following?

A) Nondischargeable debts
B) Dischargeable debts
C) Exempt debts
D) Excluded debts

Question 41

To conceal assets or knowingly supply false information on a petition in bankruptcy schedules is a crime.

A) federal
B) state
C) common law
D) petty

Question 42

Which of the following occurs when the debtor's creditors force the debtor into bankruptcy proceedings?

A) Voluntary bankruptcy
B) Creditor's bankruptcy
C) Involuntary bankruptcy
D) Forced bankruptcy

Question 43

A is a document filed with a bankruptcy court by a creditor to inform the court of a claim against a debtor's property. It lists the creditor's name and address, as well as the amount that the creditor asserts is owed to the creditor by the debtor.

A) creditor's claim
B) proof of claim
C) creditor's petition
D) proof of collateral

Question 44

As a paralegal preparing a proof of claim for a client, you should

A) key in the client-creditor's name and address.
B) insert the amount that the debtor owes the client.
C) enter the date and the debtor's name.
D) All of these choices are correct.

Question 45

A is a person appointed by the bankruptcy court to administer the debtor's estate in the interests of both the debtor and the creditors. He or she collects and reduces to cash the estate in property and closes up the estate as speedily as is compatible with the best interests of the parties.

A) bankruptcy judge
B) U.S. trustee
C) bankruptcy trustee
D) U.S. attorney

Question 46

A person filing a voluntary petition in bankruptcy under Chapter 7 must include which of the following schedules?

A) A list of both secured and unsecured creditors
B) A statement of the financial affairs of the debtor
C) A listing of current income and expenses
D) All of these choices are correct.

Question 47

Which of the following parties cannot be a debtor in a liquidation bankruptcy?

A) A husband and wife
B) A private individual
C) A savings and loan association
D) A grocery store

Question 48

If a debtor files a petition in bankruptcy, then the bankruptcy is considered a(n) bankruptcy.

A) involuntary
B) voluntary
C) volunteer
D) free

Question 49

A court's grant of assistance to a bankruptcy petitioner is called a(n)

A) order for relief.
B) judicial opinion.
C) judgment.
D) decision.

Question 50

In distribution of the debtor's estate and property, secured creditors take priority over creditors.

A) unsecured
B) regular
C) standard
D) All of these choices are correct.

Question 51

Phyllis intentionally conceals assets on her petition for bankruptcy. Phyllis has committed a crime.

A) federal
B) state
C) common law
D) petty

Question 52

Which of the following is not one of the schedules that is required to be attached to a voluntary petition under Chapter 7?

A) A list of secured and unsecured creditors
B) Copies of federal tax returns for the preceding five years
C) A statement of the amount of monthly income
D) A list of all property owned by the debtor

Question 53

Which of the following is an exception to an automatic stay?

A) An obligation to a former spouse
B) An obligation to a child
C) Proceedings related to divorce
D) All of these choices are correct.

Question 54

Eric's creditors force him into bankruptcy proceedings. Eric's bankruptcy is a(n) bankruptcy.

A) voluntary
B) creditor's
C) involuntary
D) forced

Question 55

The imposes new duties on trustees with regard to means testing for debtors in Chapter 7 proceedings.

A) U.S. Code
B) Bankruptcy Code of 1978
C) Bankruptcy Reform Act of 2005
D) Bankruptcy Reform Act of 2000

Question 56

For an involuntary bankruptcy action to be filed, the creditors must have unsecured claims totaling

A) $5,000.
B) $10,000.
C) $14,000
D) $50,000.

Question 57

An individual debtor in a Chapter 7 bankruptcy may exclude certain property from the bankruptcy. This property includes which of the following?

A) $200,000 in equity in his or her home
B) $5,000 interest in an automobile
C) Any unmatured life insurance owned by the debtor
D) Tools of the debtor's trade up to an $8,000 value

Question 58

Based on the , if the debtor's income is below the median income of the area in which he lives, the debtor is usually allowed to file for Chapter 7 bankruptcy, as there is no presumption of bankruptcy abuse.

A) statement of financial affairs
B) proof of payments received from employers
C) means test
D) listing of current income and expenses

Question 59

Which of the following parties cannot be a debtor in a liquidation bankruptcy?

A) A husband and wife
B) A private individual
C) A bank
D) A grocery store

Question 60

The document that is filed to commence a straight bankruptcy is the in bankruptcy.

A) summons
B) complaint
C) application
D) petition

Question 61

The goal of modern bankruptcy law is to provide

A) relief and protection to debtors.
B) a fair means of distributing a debtor's assets among all creditors.
C) support and protection for family businesses.
D) relief and protection to debtors and a fair means of distributing a debtor's assets among all creditors.
E) None of these choices is correct.

Question 62

Which of the following classes is first in priority among unsecured creditors for payment of claims?

A) Certain taxes and penalties due to government units
B) Claims for domestic-support obligations, such as child support and alimony
C) Claims for death or personal injury resulting from the unlawful operation of a motor vehicle
D) Unpaid wages, salaries, and commissions

Question 63

Under federal bankruptcy laws, the debtor must have lived in the state for at least to use the homestead exemption.

A) one year
B) two years
C) five years
D) ten years

Question 64

A debtor whose debts are primarily for purchases that are for household or personal use is called a

A) consumer.
B) consumer-debtor.
C) personal property debtor
D) creditor-debtor.

Question 65

Some debtors who file for bankruptcy may prefer liquidation under Chapter 7 but, due to the means test, may be required to file under of the Bankruptcy Code, which provides for "Adjustment of Debts of an Individual with Regular Income."

A) Chapter 9
B) Chapter 11
C) Chapter 12
D) Chapter 13

Question 66

In bankruptcy proceedings, the is all of the debtor's interests in property currently held and wherever located, as well as interests in certain property to which the debtor becomes entitled within 180 days after filing for bankruptcy.

A) debtor's estate
B) bankruptcy property
C) property pool
D) bankruptcy estate

Question 67

A(n) is a proceeding under Chapter 7 in which a debtor states his or her debts and turns all assets over to a trustee, who sells the nonexempt assets and distributes the proceeds to creditors.

A) bankruptcy
B) reorganization
C) liquidation
D) adjustment

Question 68

A bankruptcy trustee has specific powers of that allow the trustee to set aside an earlier sale or other transfer of the debtor's property, taking it back as a part of the debtor's estate.

A) property
B) avoidance
C) taking
D) acquisition

Question 69

A bankruptcy trustee can avoid fraudulent transfers or obligations if they were made within of the filing of the petition.

A) two years
B) five years
C) ten years
D) twelve years

Question 70

To have made a preferential payment that can be recovered, a debtor generally must have transferred property, for a preexisting debt, within
Bankruptcy.

A) ninety days
B) 120 days
C) 150 days
D) one year of the filing of the petition in

Question 71

Kathleen is thinking about petitioning for bankruptcy. Before doing so, she sells her prize stallion that is worth $10,000 to Julia for $100 with the understanding that Julia will sell the stallion back for the same price in the future. The sale of the stallion is an example of a(n)

A) illegal sale
B) fraudulent transfer.
C) bankruptcy transfer.
D) liquidation.

Question 72

Although the Bankruptcy Code allows independent paralegals to act as bankruptcy petition preparers without attorney supervision, the paralegal may not tell a debtor which of the following?

A) Whether he or she will be able to retain certain property, such as a house or car, after filing for bankruptcy
B) Whether a particular debt will or can be discharged
C) What tax consequences might be involved
D) All of these choices are correct.

Question 73

Which of the following is not exempted by the Bankruptcy Code?

A) The right to receive Social Security
B) Employee contributions to a qualified pension plan
C) $5,000 interest in jewelry
D) Interest in a motor vehicle up to $3,225

Question 74

In bankruptcy proceedings, a(n) is the debtor's favoring of one creditor over others by making payments or transferring property to that creditor at the expense of the rights of other creditors. Such payments may be recovered by the bankruptcy trustee.

A) unauthorized payment
B) preference
C) preexisting payment
D) priority

Question 75

A(n) is the termination of an obligation. In bankruptcy, it terminates the debtor's
Obligation to pay the debts discharged by the court.

A) adjustment
B) discharge
C) liquidation
D) reorganization

Question 76

Under the bankruptcy trustee's powers of avoidance, which of the following is an action he or she can take?

A) Obtain the return of property transferred based on mutual mistake
B) Recover payments made by the debtor to one creditor in preference over another
C) Undo transfers that the debtor made with intent to defraud creditors
D) All of these choices are correct.

Question 77

Which of the following is not exempted by the Bankruptcy Code?

A) The right to receive Social Security
B) Employee contributions to a qualified pension plan
C) $200,000 in equity in a home
D) Interest in a motor vehicle up to $3,225

Question 78

A(n) creditor is a lender, seller, or any other person in whose favor there is a security interest.

A) unsecured
B) general
C) consumer
D) secured

Question 79

Which of the following debts is dischargeable in a Chapter 7 liquidation?

A) Claims against property or funds obtained by the debtor under false pretenses or by false representations
B) Claims for back taxes accruing within two years prior to bankruptcy
C) Claims of general creditors for nonluxury personal and household goods
D) Claims by creditors who were not notified of the bankruptcy

Question 80

The state exemption allows debtors petitioning for bankruptcy to shield unlimited amounts of equity in their homes from creditors.

A) house
B) homestead
C) place of residence
D) house and hearth