Question 1

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan.He is granted a discharge.Debts that will not be discharged include claims for​

Accepted Answer

An individual's repayment plan only provides for certain debts to be paid off over a period of time. Any other debts that are allowed but not provided for by the plan will not be discharged. Money owed for services rendered and credit-card debt may be included in the repayment plan, so they may be discharged if included.

Question 2

Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a petition by​

Accepted Answer

An individual's repayment plan can only be initiated by the debtor filing a petition for bankruptcy. Trustee, corporation, and partnership cannot initiate a repayment plan for an individual's bankruptcy.

Question 3

Lynn,the owner of Market Sales Company,sells the firm to Nell for a note payable to Lynn for $100,000.Nell does not pay the note and files for bankruptcy under Chapter 7.The debt represented by the note is​

Accepted Answer

The answer of Lynn,the owner of Market Sales Company,sells the...

Question 4

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy.A court will confirm her bankruptcy plan if it provides for​

Accepted Answer

The answer of Jill believes that she should file a...

Question 5

To adjust debt and institute a repayment plan,Don,a family fisherman in the Pacific Ocean off the coast of Alaska,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter​

Accepted Answer

Chapter 12 of the Bankruptcy Code is specifically designed for family farmers and family fishermen to restructure their debts and create a repayment plan.

Question 6

Sunn Energy,Inc. ,needs funds to meet its payroll,to make other current operating expenses,and to pay its creditors.Terence,Sunn's only shareholder,loans the company $100,000 and accepts a promissory note signed on behalf of Sunn by Ulrich,the firm's accountant.Sunn's financial problems continue,however,and the firm's creditors file an involuntary petition to force it into bankruptcy.Is Terence entitled to repayment of the loan to Sunn? If so,what is the priority of the claim?​

Accepted Answer

The answer of Sunn Energy,Inc. ,needs funds to meet its...

Question 7

eGear is a retail seller of cellphones,televisions,and other consumer electronic equipment.eGear sells Fiona a $2,400 large-screen,high-definition set on a retail installment security agreement in which she pays $100 down and agrees to pay the balance in equal installments.eGear retains a security interest in the set,and perfects that interest by filing a financing statement centrally.Two months later,Fiona is in default on the payments to eGear and is involuntarily petitioned into bankruptcy by other creditors.Discuss eGear's right to repossess the TV set and whether eGear has priority over the trustee in bankruptcy to any proceeds from the disposal of the set.

Accepted Answer

The answer of eGear is a retail seller of cellphones,televisions,and...

Question 8

Zeke files a petition for bankruptcy under Chapter 13.Zeke's Chapter 13 plan must provide for​

Accepted Answer

In a Chapter 13 bankruptcy, the debtor's future income is turned over to the trustee to be applied toward paying off creditors over a period of three to five years. Therefore, the Chapter 13 plan must provide for the turnover of future income to the trustee. B is also a requirement, but it is not specific to the Chapter 13 plan. C is a requirement but not specific to the plan, and D is not allowed as the plan must treat all creditors fairly.

Question 9

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy's reorganization plan must contain​

Accepted Answer

Under Chapter 11 bankruptcy, the reorganization plan must include adequate means for the plan's execution. This means that the plan must be feasible and realistic in terms of the company's ability to meet its financial obligations going forward. The other options listed are not required under Chapter 11 bankruptcy.

Question 10

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid​

Accepted Answer

According to the Bankruptcy Code, if the creditor extended credit for all or part of the purchase price of the car, they have a secured interest (lien) on the car that must be recognized in a Chapter 13 Plan. Therefore, Farrah's plan must provide that Go has a lien on the car until the entire debt is paid.

Question 11

To adjust debt and institute a repayment plan,Diana-who is not a corporation,a partnership,or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

Accepted Answer

Diana, who is not a corporation, a partnership, or a family farmer or fisherman, can file for relief through a repayment plan under Chapter 13 bankruptcy. This allows her to restructure her debts and repay them over a period of three to five years, rather than liquidating all her assets under Chapter 7 bankruptcy.

Question 12

Builders Construction files a voluntary petition for bankruptcy.In listing its assets,Builders intentionally omits certain assets,including plots of undeveloped real estate.After Builders is granted a discharge,Commercial Electric,one of Builders' unsecured creditors whose claims were discharged,learns of the fraud.Commercial Electric can​

Accepted Answer

Commercial Electric can enforce its claim against Builders because the fraud committed by Builders in omitting assets from the list of assets is a ground for exception from discharge under Section 523(a)(2) of the Bankruptcy Code. As such, the debt owed to Commercial Electric is not discharged and remains enforceable.

Quiz 15: Creditor Debtor Relations and Bankruptcy

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan.He is granted a discharge.Debts that will not be discharged include claims for​

Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a petition by​

Lynn,the owner of Market Sales Company,sells the firm to Nell for a note payable to Lynn for $100,000.Nell does not pay the note and files for bankruptcy under Chapter 7.The debt represented by the note is​

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy.A court will confirm her bankruptcy plan if it provides for​

To adjust debt and institute a repayment plan,Don,a family fisherman in the Pacific Ocean off the coast of Alaska,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter​

Zeke files a petition for bankruptcy under Chapter 13.Zeke's Chapter 13 plan must provide for​

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy's reorganization plan must contain​

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid​

To adjust debt and institute a repayment plan,Diana-who is not a corporation,a partnership,or a family farmer or fisherman-may file a petition in bankruptcy for relief through​

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan.He is granted a discharge.Debts that will not be discharged include claims for

Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a petition by

Lynn,the owner of Market Sales Company,sells the firm to Nell for a note payable to Lynn for $100,000.Nell does not pay the note and files for bankruptcy under Chapter 7.The debt represented by the note is

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy.A court will confirm her bankruptcy plan if it provides for

To adjust debt and institute a repayment plan,Don,a family fisherman in the Pacific Ocean off the coast of Alaska,may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter

Zeke files a petition for bankruptcy under Chapter 13.Zeke's Chapter 13 plan must provide for

Spicy Pizza,Inc. ,files for bankruptcy under Chapter 11.Spicy's reorganization plan must contain

Farrah buys a car from Go Motors,financing the purchase through a loan.Less than a year later,she files for bankruptcy under Chapter 13.Her plan must provide that Go has a lien on the car until the entire debt is paid

To adjust debt and institute a repayment plan,Diana-who is not a corporation,a partnership,or a family farmer or fisherman-may file a petition in bankruptcy for relief through