Deck 2: Overview of the Bankruptcy Code

Question 1

The Bankruptcy Code is found in _______.

A) Title 7.
B) Title 11.
C) Title 13.
D) Title 21.

Answer 1

Title 11.

Question 2

Student loans are an example of secured debt because the debt is attached to the degree received.

Answer 2

False

Question 3

Important definitions under the Code can be found in Section 101.

Answer 3

True

Question 4

The Milavetz ruling is that:

A) the First Amendment prohibits advertising under a "federal repayment plan."
B) the requirements of debt relief agencies under BAPCPA are not a violation of the First Amendment, and bankruptcy attorneys and law firms are debt relief agencies.
C) §528(a)(4) violates the First Amendment.
D) defines "attorney" under the Code in Section §101(12A).

Question 5

Because law firms compensate paralegals, paralegals are considered petition preparers under Section 101 of the Code.

Question 6

Due to legal training, a petition preparer can give legal advice to an assisted person.

Question 7

Since alimony isn't required in every case, unlike child support, alimony can be discharged in bankruptcy.

Question 8

If you paid back a debt owed to your cousin Frank, that could be considered a payment made to an insider under the Code.

Question 9

A car loan is an example of a voluntary lien, so an involuntary lien cannot be placed on the car.

Question 10

Bankruptcy attorneys are required to disclose their fees in a bankruptcy petition.

Question 11

The initial hearing for the debtor is known as the 342 Meeting of Creditors.

Question 12

Because oral contracts are valid, an attorney and debtor can agree to the fees, costs, and services to be provided verbally.

Question 13

Chapter 11 applies only to businesses.

Question 14

A bankruptcy attorney must provide to the client written notice as well as a description of the different chapters available to consumers.

A) True under §527.
B) False under §528
C) False. There is no such requirement as a consultation with an attorney is sufficient notice since the attorney would need to review the client's options, including whether or not to file for bankruptcy.
D) True, under §529, to the extent it's requested by the client.

Question 15

Law firms are debt relief agencies.

Question 16

A debt relief agency is defined in ______ of the Bankruptcy Code.

A) §101
B) §152
C) §526
D) §528

Question 17

Because of Albert's arrest for a DUI crash, he lost his job and his house to foreclosure. Albert qualifies for Chapter 7 because he hasn't earned any income over the last eight months. Albert wants to include all his credit card debt and $5,500 in damages to the vehicle he crashed into. Albert should be advised:

A) That he can include his debt related to the house (deficiency judgment).
B) Albert can include his credit card debt.
C) All of the above.
D) Albert can't include the damages to the vehicle.

Question 18

The financial management class certificate should be filed within:

A) seven days of the bankruptcy petition being filed.
B) Before the 341 Meeting of Creditors is held.
C) Up to forty-five days after the discharge has been entered.
D) Within sixty days of the first scheduled 341 Meeting of Creditors.
E) At least forty-five days before the bankruptcy petition is filed.

Question 19

What are the different Chapters available under the Code for bankruptcy?

Question 20

Why should you not answer a potential client's questions over the phone or in person?

Question 21

What is the significance of the Milavetz ruling?

Question 22

What is a domestic support obligation?

Question 23

What is a proof of claim?

Question 24

Victor was seriously injured in an accident and may never be able to work again. David was at fault. Victor has proceeded to file a personal injury lawsuit against David. Victor wants to know if David can file for bankruptcy if a judgment is issued against him.

Question 25

Who can file for Chapter 11?

Question 26

Define a debt relief agency.

Question 27

When is a Retainer Agreement required to be provided to the client?

Question 28

What is the automatic stay?

Question 29

What is the difference between residency and domicile?