Question 1

An individual may not be a debtor under the Bankruptcy Code unless the individual has, within 180 days prior to the bankruptcy filing, received a briefing from an approved nonprofit budget- and credit-counseling agency.

Accepted Answer

This statement is true. According to the Bankruptcy Code, an individual must receive a briefing from an approved nonprofit budget- and credit-counseling agency within 180 days prior to filing for bankruptcy.

Question 2

The nonprofit budget- and credit-counseling agencies that are eligible to provide briefings to individual debtors must be approved by the bankruptcy courts.

Accepted Answer

Nonprofit budget- and credit-counseling agencies must be approved by the United States Trustee Program (or Bankruptcy Administrator where applicable), not directly by the bankruptcy courts.

Question 3

The Code requires the party filing for bankruptcy to be insolvent.

Accepted Answer

The Bankruptcy Code does not require a party to be insolvent to file for bankruptcy. Both solvent and insolvent entities can seek bankruptcy protection for various reasons, including restructuring debts.

Question 4

The bankruptcy court may not regulate the reasonableness of attorney fees charged to debtors in bankruptcy cases.

Accepted Answer

The bankruptcy court has the authority to regulate the reasonableness of attorney fees charged to debtors in bankruptcy cases, as part of its oversight of the bankruptcy process. The court may review the fees charged by attorneys and may reduce or disallow them if they are deemed to be excessive or unreasonable.

Question 5

What is a bankruptcy petition preparer?

Accepted Answer

The answer of What is a bankruptcy petition preparer?...

Question 6

The bankruptcy judge appoints the members of the trustee panel.

Accepted Answer

The U.S. Trustee Program, a component of the Department of Justice, is responsible for appointing and supervising the panel of private trustees who administer bankruptcy cases.

Question 7

On June 1, 2006, Clarence Collier filed a petition for bankruptcy under Chapter 7. On June 15, First National Bank filed a motion for relief from the automatic stay. On June 20, Clarence filed a motion requesting dismissal of his case. The case was dismissed on July 1. Clarence could file a new petition for bankruptcy under Chapter 7 on November 28, 2006.

Accepted Answer

If a debtor has obtained a voluntary dismissal of the case following the filing of a request for relief from the automatic stay, the debtor cannot be a debtor in a new Chapter 7 case until 180 days have passed. Because November 28 is only five months after July 1, the 180-day interval has not expired.

Question 8

The United States trustee is a member of the bankruptcy judge's staff.

Accepted Answer

The United States Trustee is not a member of the bankruptcy judge's staff but rather operates as part of the Department of Justice, overseeing the administration of bankruptcy cases and trustees.

Question 9

List the positions on the bankruptcy judge's staff.

Accepted Answer

The answer of List the positions on the bankruptcy judge's...

Question 10

Stephanie Simpson, a United States citizen, is a reporter for a major newspaper. For the past three years she has been assigned to London. All of her property is with her in London. If Stephanie finds that she is unable to pay her creditors, she may file for bankruptcy under the Code.

Accepted Answer

To become a debtor, a person must reside or have a domicile, a place of business, or property in the United States, 11 U.S.C.A. § 109(a). Because Stephanie does not reside, have a domicile, or have property in the United States, she is not eligible to be a debtor.

Question 11

Debt relief agencies must comply with certain disclosure requirements.

Accepted Answer

Debt relief agencies are required by law to disclose certain information to consumers, such as the cost of their services, possible negative consequences, and the timeframe for achieving debt relief. Failure to comply with these disclosure requirements can result in legal action and penalties.

Question 12

The bankruptcy court and the district court may, under certain circumstances, waive the filing fee for a debtor in a case under Chapter 7.

Accepted Answer

The bankruptcy court and the district court have the authority to waive the filing fee for a debtor in Chapter 7 bankruptcy if the debtor meets the requirements for a waiver, such as having income below a certain level or being unable to pay the fee in installments. However, this waiver is not automatic and the debtor must file a motion and provide evidence of their financial hardship.

Question 13

The Code requires the party filing for bankruptcy to be a person, partnership, or corporation.

Accepted Answer

The answer of The Code requires the party filing for...

Question 14

A "debt relief agency" may include an attorney.

Accepted Answer

According to the federal law known as the "Credit Repair Organizations Act" (CROA), a "debt relief agency" is defined as any person or company that provides services to assist consumers with debt relief or credit repair, including attorneys. Therefore, attorneys may be considered as debt relief agencies.

Question 15

An individual is not entitled to a discharge in a case under Chapter 7 if he or she has been a debtor and has received a discharge in a case commenced within the past eight years.

Accepted Answer

This statement is true under the Bankruptcy Code's "once in eight years" rule. An individual cannot receive a discharge in a Chapter 7 case if they have already received a discharge in a Chapter 7 case within the past eight years, or if they have received a discharge in a Chapter 13 case within the past six years.

Question 16

The United States trustee is a member of the Chapter 7 trustee panel.

Accepted Answer

The United States trustee oversees the administration of bankruptcy cases, but is not a member of the Chapter 7 trustee panel. The Chapter 7 trustee panel is composed of private individuals appointed by the U.S. trustee to administer Chapter 7 cases.

Question 17

If a creditor has a security interest in a motor vehicle worth $15,000 that secures a claim of $20,000, what type(s) of claim does the creditor have?

Accepted Answer

The answer of If a creditor has a security interest...

Question 18

A person cannot serve as a trustee unless he or she is a member of the trustee panel.

Accepted Answer

A person can serve as a trustee even if he or she is not a member of the trustee panel. Trustee panels are typically made up of individuals who have been nominated or appointed to serve as trustees, but exceptions can be made depending on the specific situation or organization.

Question 19

The bankruptcy petition preparer is not an attorney or an employee of an attorney.

Accepted Answer

A bankruptcy petition preparer is a non-attorney who assists individuals with preparing bankruptcy paperwork, but they are not authorized to provide legal advice or represent clients in court.

Question 20

What is an administrative expense?

Accepted Answer

The answer of What is an administrative expense?...

Quiz 3: The Case Characters and Their Roles in the Bankruptcy Process