Deck 9: Selecting the Appropriate Type of Bankruptcy Fling

Question 1

The fair-and-equitable test does not apply in Chapter 11 cases for individual debtors.

Answer 1

True

Question 2

The greatest number of bankruptcy filings are ____.

A) nonbusiness Chapter 7
B) Chapter 13
C) business Chapter 11
D) business Chapter 7
E) nonbusiness Chapter 7

Answer 2

A

Question 3

Why would an individual debtor who operates a business prefer to reorganize under Chapter 13 rather than Chapter 11?

Answer 3

The cost of reorganizing under Chapter 13 is usually less than the cost of reorganizing under Chapter 11.

Question 4

The operative chapter of the Bankruptcy Code for liquidation is ____.

A) Chapter 5
B) Chapter 7
C) Chapter 11
D) Chapter 13
E) Chapter 5

Question 5

Explain why a business debtor may choose to liquidate under Chapter 11 rather than under Chapter 7.

Question 6

Domestic insurance companies and banks may not be debtors under the Bankruptcy Code.

Question 7

The debtor that operates a business is eligible to file for bankruptcy under Chapters 11, 12, and 13.

Question 8

An individual business debtor may file under Chapter 13.

Question 9

All farmers are eligible to be debtors under Chapter 12.

Question 10

Although railroads are only eligible for Chapter 11 and stockbrokers and commodity brokers are only eligible for Chapter 7, all other business debtors are eligible to file under either Chapter 7 or Chapter 11.

Question 11

Not all debtors are eligible to file under all the operative chapters of the Bankruptcy Code.

Question 12

For a business debtor, discuss the factors that relate to the selection of the operative chapter of the Bankruptcy Code under which the case is filed. Include in your discussion eligibility as well as other factors.

Question 13

For a nonbusiness debtor, discuss the factors that relate to the selection of the operative chapter of the Bankruptcy Code under which the case is filed. Include in your discussion eligibility as well as other factors.

Question 14

If a debtor operates a business and either is unable to reorganize or does not want to reorganize, the bankruptcy options are a Chapter ________ or a Chapter _________.

Question 15

In the calendar year ending December 31, 2004, the number of bankruptcy cases filed in the 94 bankruptcy courts across the country was ____.

A) more than 500,000 but less than 1,000,000
B) more than 1,000,000 but less than 1,500,000
C) more than 1,500,000 but less than 1,750,000
D) more than 1,750,000 but less than 2,000,000
E) more than 500,000 but less than 1,000,000

Question 16

All business debtors except railroads, insurance companies, banks, savings and loan associations, and credit unions are eligible for Chapter 7.

Question 17

Explain why business debtors seldom select Chapter 7.

Question 18

An individual nonbusiness debtor may file under Chapter 11.

Question 19

An individual debtor may not receive a discharge under Chapter 11 until all plan payments have been made.

Question 20

Name three remedies available to a debtor under Chapter 13 that are not available under Chapter 7.