Question 1

Identify and define the two types of bankruptcy filings.

Accepted Answer

The answer of Identify and define the two types of...

Question 2

Chapter 13 bankruptcy is sometimes referred to as a ______________________:

Accepted Answer

Chapter 13 bankruptcy is often called a reorganization bankruptcy because it allows individuals with a regular income to reorganize their finances and create a repayment plan to catch up on their debts.

Question 3

A debtor is an individual or business who:

Accepted Answer

A debtor is someone who owes money to someone else, whether it's a person or a business.

Question 4

Chapter 11 Bankruptcy is mostly used by_____________:

Accepted Answer

Chapter 11 bankruptcy is primarily utilized by corporations seeking to reorganize their debts and continue their operations, although it can also be used by individuals and other business entities under certain circumstances.

Question 5

Examples of debts discharged under Chapter 7 bankruptcy are the following EXCEPT:

Accepted Answer

Student loans are generally not dischargeable under Chapter 7 bankruptcy unless the debtor can prove that repaying the loans would cause undue hardship. Credit card bills, medical bills, and lawsuit judgments are typically dischargeable.

Question 6

The purpose of Chapter 15 bankruptcy is to promote _______________between U.S.courts and those of foreign countries in bankruptcy cases.

Accepted Answer

Chapter 15 bankruptcy promotes cooperation between U.S. courts and those of foreign countries, by allowing for coordination of bankruptcy proceedings that involve multiple jurisdictions. It provides a framework for cross-border insolvency cases and helps to promote consistency in the treatment of international insolvency cases.

Question 7

Under the provisions of Chapter 13 of the federal bankruptcy law,the debtor retains his or her property but agrees to pay back all or a portion of his or her debts on an interest free basis over a period spanning from ____________ years.

Accepted Answer

Under Chapter 13 bankruptcy, the debtor proposes a repayment plan to repay all or a portion of their debts over a period of three to five years.

Question 8

Insolvency occurs when:

Accepted Answer

Insolvency occurs when the liabilities of an individual or business exceed their assets. This means the individual or business is unable to pay their debts.

Question 9

To be eligible for a Chapter 12 bankruptcy,a debtor cannot owe more than_____________:

Accepted Answer

To be eligible for a Chapter 12 bankruptcy, a debtor cannot owe more than $1,500,000. This type of bankruptcy is specifically designed for family farmers or family fishermen who want to reorganize their debts in a way that allows them to keep their property and continue operating their business. It offers more flexible repayment terms than other types of bankruptcy, which can be particularly helpful in industries with variable income streams or seasonal fluctuations.

Question 10

Under Chapter 13 examples of priority debts include all of the following EXCEPT:

Accepted Answer

Priority debts in Chapter 13 include certain tax obligations, alimony and child support, and wages owed to employees. Automobile loans are not considered priority debts in Chapter 13 but are treated as secured debts.

Question 11

A record of bankruptcy may remain on one's record for up to:

Accepted Answer

A record of bankruptcy can remain on an individual's credit report for up to 10 years, depending on the type of bankruptcy filed. Chapter 7 bankruptcies typically stay on a credit report for 10 years, while Chapter 13 bankruptcies may be removed after 7 years.

Question 12

Under Chapter 9 bankruptcy municipality is defined as the following type of entity EXCEPT:

Accepted Answer

Under Chapter 9 bankruptcy, a municipality can file for bankruptcy protection. However, a municipality is not defined as a private agency, so option D is incorrect. The correct options for the definition of a municipality under Chapter 9 include A, B, and C.

Question 13

In addition to the means test,the Bankruptcy Abuse Prevention and Consumer Protection Act requires that a debtor who wishes to file under any chapter of the bankruptcy law must,unless exempt,receive individual or group credit counseling from an approved,not-for-profit,individual or group budget or credit counseling agency.The debtor must obtain a certificate from this agency outlining the assistance in budgeting that the debtor received.The counseling must be performed by telephone or online within _________ prior to the bankruptcy filing.

Accepted Answer

The Bankruptcy Abuse Prevention and Consumer Protection Act requires that the debtor must receive credit counseling within 180 days prior to filing for bankruptcy.

Question 14

The Bankruptcy Abuse Prevention and Consumer Protection Act allows the bankruptcy court to disallow a petition for a Chapter 7 bankruptcy if the individual filing for bankruptcy earns an income that is __________________to meet the standards of the means test.

Accepted Answer

The means test compares an individual filing for bankruptcy's income with the median income for their state. If the individual's income is above the median income, the court may disallow the Chapter 7 bankruptcy petition. Therefore, the income must be considered "too high" to meet the means test standards.

Question 15

To be eligible for a Chapter 12 bankruptcy,at least ____________of the debtor's income must come from his or her farming or fishing activities.

Accepted Answer

To be eligible for Chapter 12 bankruptcy, at least 50% of the debtor's income must come from farming or fishing activities. This is because Chapter 12 bankruptcy is specifically designed for family farmers and fishermen who are experiencing financial distress. It allows them to reorganize their debts and continue farming or fishing operations while paying off their creditors over a period of time.

Question 16

In general a debtor may not file for Chapter 7 bankruptcy if he or she had received a bankruptcy discharge in the last_________________:

Accepted Answer

A debtor may not file for Chapter 7 bankruptcy if they have received a discharge under Chapter 7 or Chapter 11 within the last eight years.

Question 17

A(n)______________ filing occurs when creditors pressure the debtor to file:

Accepted Answer

An involuntary bankruptcy filing occurs when creditors pressure the debtor to file for bankruptcy. In this type of filing, the debtor does not initiate the filing, but rather it is conducted by the creditors.

Question 18

Under Chapter 7 of the bankruptcy law examples of exempt property under federal law include the following EXCEPT:

Accepted Answer

Federal law exempts certain types of property in bankruptcy, including one motor vehicle, appliances, and trade tools. However, a vacation home is not protected as exempt property under Chapter 7 bankruptcy.

Question 19

Under Chapter 13,certain debts are considered to be priority debts.Priority debts are deemed to be _________________that they must be paid in full.

Accepted Answer

Priority debts are considered sufficiently important that they must be paid in full under Chapter 13 bankruptcy. These debts include things like taxes, child support, and certain other debts that are considered more important than others.

Question 20

Define and give examples of secured debts.

Accepted Answer

The answer of Define and give examples of secured debts....

Quiz 21: Bankruptcy