Question 1

An individual debtor whose schedule of assets and liabilities includes consumer debts secured by property of the estate must file with the bankruptcy court clerk a statement of intention with respect to the retention or surrender of the property. If the property is claimed as exempt, the debtor must state whether he or she intends to redeem the property or to reaffirm debts secured by the property.

Accepted Answer

This statement is true according to Section 521(a)(2) of the Bankruptcy Code.

Question 2

Willy Walton, a tenant at the Silver Dollar Apartments, fell two months behind in his rent. The landlord procured a judgment in small claims court and told Willy, "I don't care whether you file bankruptcy or not, I have a judgment and I'm going to collect it." Upon hearing this, Willy filed a petition in bankruptcy under Chapter 7. Before receiving notice of Willy's petition in bankruptcy, but after the bankruptcy petition was filed, the landlord filed a forcible entry and detainer and had a summons served on Willy to evict him. The landlord has violated the automatic stay and is subject to contempt proceedings in the bankruptcy court.

Accepted Answer

The landlord filed a summons for eviction after Willy filed for Chapter 7 bankruptcy, which violates the automatic stay. The landlord can be subject to contempt proceedings in the bankruptcy court.

Question 3

The debtor must carry out his or her intention with respect to the retention or surrender of property of the estate secured by a lien within ______ days after the date set for the meeting of creditors.

Accepted Answer

The answer of The debtor must carry out his or...

Question 4

In anticipation of filing a petition in bankruptcy, a debtor has the absolute right to convert nonexempt property into exempt property.

Accepted Answer

This statement is false. The bankruptcy code prohibits debtors from converting nonexempt property into exempt property with the intent to hinder, delay, or defraud creditors. Such actions may be considered fraudulent and could result in denial of discharge or even criminal charges.

Question 5

The debtor must have a present possessory right in the property for it to be considered property of the estate.

Accepted Answer

Property of the estate includes all legal or equitable interests of the debtor in property at the time of the bankruptcy filing, regardless of whether the debtor has a present possessory right.

Question 6

At any time after the order for relief, a creditor may file a complaint objecting to the dischargeability of a debt.

Accepted Answer

The answer of At any time after the order for...

Question 7

The Schedules are Official Form No. ____.

Accepted Answer

The answer of The Schedules are Official Form No. ____....

Question 8

If a state has not "opted out" of the federal bankruptcy exemptions, the debtor has a choice between the state exemptions and the federal nonbankruptcy exemptions on the one hand, and the federal bankruptcy exemptions on the other.

Accepted Answer

If a state has not opted out of the federal bankruptcy exemptions, the debtor can choose between the state exemptions and the federal nonbankruptcy exemptions or the federal bankruptcy exemptions.

Question 9

Darla Ravenswood, whose domicile is Portland, Maine, filed a petition in bankruptcy in the United States Bankruptcy Court for the District of Maine. Darla owns property in Portland, Maine, and in Florida, California, New York, and Paris, France. The United States Bankruptcy Court for the District of Maine has exclusive jurisdiction over Darla's property regardless of whether it is located in Maine, Florida, California, New York, or Paris.

Accepted Answer

In a bankruptcy case, the United States Bankruptcy Court has jurisdiction over all of the debtor's property, wherever located, including property located in other states or countries.

Question 10

A complaint to determine the dischargeability of debt may be filed by a creditor, the case trustee, and the United States trustee, but never by the debtor.

Accepted Answer

A complaint to determine the dischargeability of debt may only be filed by the debtor, not by a creditor, the case trustee, or the United States trustee.

Question 11

At the time the petition is filed, property of the estate consists of all legal and equitable interests of the debtor, including the property that the debtor may claim as exempt.

Accepted Answer

This statement is true according to the definition of property of the estate in the United States Bankruptcy Code. It includes all the legal and equitable interests of the debtor, whether or not they are exempt from being sold to repay creditors.

Question 12

The section 341 meeting is commonly referred to as the meeting of creditors.

Accepted Answer

This is true. The section 341 meeting is called the meeting of creditors because it is an opportunity for creditors to ask questions about the debtor's financial situation and assets.

Question 13

The debtor's car was encumbered for $1,500 although its value was only $1,000. The debtor filed a petition in bankruptcy under Chapter 7. If the debtor's trustee abandons the car, it is no longer subject to the automatic stay.

Accepted Answer

The answer of The debtor's car was encumbered for $1,500...

Question 14

The debtor and a party in interest may raise all of the same issues by motion.

Accepted Answer

While both a debtor and a party in interest can raise issues by motion in a bankruptcy case, there are certain issues that may be specific to the debtor or the party in interest, thus not all issues can be raised by both parties in the same manner.

Question 15

The debtor's statement of financial affairs, Official Form No. 7, must be completed by all debtors under Chapter 7.

Accepted Answer

The debtor's statement of financial affairs, Official Form No. 7, is required to be completed by all debtors filing for bankruptcy under Chapter 7.

Question 16

The attorney's disclosure of compensation statement must be filed with the court and transmitted to the United States trustee within ______ days after the petition has been filed, or by another date set by the court.

Accepted Answer

The answer of The attorney's disclosure of compensation statement must...

Question 17

The meeting of creditors in a Chapter 7 or Chapter 11 case must be held not less than ____ nor more than ____ days after the entry of the order for relief.

Accepted Answer

The answer of The meeting of creditors in a Chapter...

Question 18

At any time after the order for relief, but not later than 60 days following the first date set for the section 341 meeting of creditors, a creditor, the trustee, or the United States Trustee may file a complaint objecting to an individual Chapter 7 debtor's discharge.

Accepted Answer

This statement is true according to Section 727(a) of the Bankruptcy Code.

Question 19

Identify each schedule by placing the letter of the schedule next to the title of the schedule.
1.Personal Property
2.Creditors Holding Secured Claims
3.Creditors Holding Unsecured Nonpriority Claims
4.Real Property
5.Property Claimed as Exempt
6.Codebtors
7.Current Income of an Individual Debtor(s)
8.Current Expenditures of an Individual Debtor(s)
9.Creditors Holding Unsecured Priority Claims
10.Executory Contracts and Unexpired Leases

Accepted Answer

The answer of Identify each schedule by placing the letter...

Question 20

If the applicable state has "opted out" of the federal bankruptcy exemptions, the debtor who has resided in the state for at least the past 730 days has no choice and must claim the state exemptions and the federal nonbankruptcy exemptions.

Accepted Answer

If a state has opted out of the federal bankruptcy exemptions, a debtor who has resided in the state for at least the past 730 days must claim the state exemptions and the federal nonbankruptcy exemptions. This is because the debtor is not allowed to claim the federal bankruptcy exemptions in that state.

Quiz 5: The Voluntary Chapter 7 Bankruptcy Liquidation