Question 1

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

Accepted Answer

Concealing assets or knowingly supplying false information on a bankruptcy petition is considered a federal crime, as bankruptcy laws are governed by federal legislation, specifically under the United States Code.

Question 2

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

Accepted Answer

Involuntary bankruptcy occurs when the debtor's creditors initiate the bankruptcy proceedings, forcing the debtor into bankruptcy against their will.

Question 3

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.

Accepted Answer

A proof of claim is the correct term for a document filed in bankruptcy proceedings by a creditor, detailing the amount of debt the debtor owes to the creditor. This document is essential for the creditor to participate in the distribution of the debtor's bankruptcy estate.

Question 4

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

Accepted Answer

When preparing a proof of claim, it is necessary to include the client-creditor's name and address, the amount owed by the debtor, and the date and debtor's name to ensure the claim is properly documented and filed.

Question 5

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.

Accepted Answer

A bankruptcy trustee is the individual responsible for overseeing and managing the bankruptcy process, including the debtor's assets, for the benefit of the creditors and the debtor, as described in the statement.

Question 6

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

Accepted Answer

When filing a voluntary petition in bankruptcy under Chapter 7, the individual must include a list of both secured and unsecured creditors, a statement of the debtor's financial affairs, and a listing of current income and expenses. These documents provide a comprehensive overview of the debtor's financial situation, which is necessary for the bankruptcy process.

Question 7

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

Accepted Answer

Savings and loan associations are generally not eligible to be debtors in a liquidation bankruptcy under Chapter 7 of the United States Bankruptcy Code. This is because certain financial institutions, including banks and insurance companies, are excluded from Chapter 7 relief due to their specific regulatory environments and the potential impact on the financial system.

Question 8

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

Accepted Answer

When a debtor files a petition in bankruptcy on their own behalf, it is considered a voluntary bankruptcy. This contrasts with involuntary bankruptcy, which occurs when creditors file the petition against the debtor.

Question 9

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

Accepted Answer

An order for relief is the official term for a court's grant of assistance to a bankruptcy petitioner, initiating the bankruptcy process.

Question 10

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

Accepted Answer

Secured creditors have a legal claim to specific assets of the debtor as collateral for the debt, giving them priority over unsecured creditors who do not have such claims.

Question 11

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

Accepted Answer

Bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code. Intentionally concealing assets in a bankruptcy petition is a violation of federal law, making it a federal crime.

Question 12

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

Accepted Answer

Copies of federal tax returns for the preceding five years are not required to be attached to a voluntary petition under Chapter 7. Instead, tax return documents may be requested by the court or the trustee at a later stage, but they are not part of the initial filing requirements.

Question 13

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

Accepted Answer

All of these choices are correct because exceptions to an automatic stay typically include obligations to a former spouse, obligations to a child, and proceedings related to divorce, among others. These exceptions are designed to ensure that certain personal and familial obligations are not halted by the automatic stay provision in bankruptcy law.

Question 14

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

Accepted Answer

Eric's bankruptcy is classified as "involuntary" because it is initiated by his creditors, not by Eric himself.

Question 15

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

Accepted Answer

The Bankruptcy Reform Act of 2005 imposes new duties on trustees regarding means testing for debtors in Chapter 7 proceedings, aiming to ensure that those who can afford to pay their debts do so.

Question 16

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

Accepted Answer

As of my last update in 2023, for an involuntary bankruptcy action to be filed under U.S. law, the creditors must have unsecured claims totaling at least $16,750 if there are three or more creditors. This amount is periodically adjusted for inflation. The specific choice closest to this threshold, given the options, is $14,000, although it's important to note that the actual threshold may vary with inflation adjustments.

Question 17

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

Accepted Answer

The answer of An individual debtor in a Chapter 7...

Question 18

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.

Accepted Answer

The means test is used to determine if a debtor's income is low enough to file for Chapter 7 bankruptcy, which involves liquidating assets to pay off debts. If the debtor's income is below the median for their area, they typically can file for Chapter 7 without a presumption of abuse.

Question 19

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

Accepted Answer

A bank cannot be a debtor in a liquidation bankruptcy because banks are regulated entities that have specific procedures for insolvency that do not involve the typical liquidation bankruptcy process available to other businesses and individuals.

Question 20

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

Accepted Answer

The correct document filed to commence a straight bankruptcy is the "petition." This is the formal request to the court to declare the filer bankrupt under the relevant chapter of the Bankruptcy Code.

Quiz 19: Bankruptcy and Environmental Law

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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