Question 1

Explain how a notice received by a debtor from a creditor may affect the address to be used in giving notice to that creditor.

Accepted Answer

Under 11 U.S.C.A. § 342(c), a creditor may designate the address to use for providing notice to the creditor in bankruptcy cases.

Question 2

Discuss several factors to consider when determining whether a debtor should file under Chapter 7 or Chapter 13.

Accepted Answer

When a debtor is considering whether to file under Chapter 7 or 13, the debtor must consider whether the debtor can pass the means test for Chapter 7, whether the debtor is eligible for a discharge under Chapter 7, whether the debtor is in default on a debt secured by the debtor's residence and would like to keep the residence, and whether the debtor owes non-dischargeable debt that is entitled to priority and could be paid under a Chapter 13 plan.

Question 3

Mary Valesquez and Cynthia Webster formed a partnership for the purpose of operating an interior decorating shop. Mary and Cynthia found it difficult to pay their creditors, and after the first year in business the shop closed. Mary and Cynthia are eligible to file a joint petition under Chapter 7.

Accepted Answer

False

Question 4

Dana Jones, an individual, has a number of debts, one of which is a loan she obtained to pay college tuition. Dana should file a Chapter 13, as this debt is dischargeable under Chapter 13 but not under Chapter 7.

Accepted Answer

This statement is false. Student loans are generally not dischargeable under either Chapter 7 or Chapter 13 bankruptcy, unless the debtor can prove undue hardship. Therefore, the fact that Dana's debt is from a college loan is not relevant to the decision of filing under Chapter 13 or Chapter 7. Other factors, such as income and assets, should be considered when choosing the appropriate type of bankruptcy for Dana's situation.

Question 5

MATCHING
Match each statement with the correct item below.
a.
Municipalities.
b.
Family farmers or family fishermen with regular annual income.
c.
All persons except railroads, insurance companies, and certain banking institutions.
d.
Individuals with regular income and individuals with regular income and spouse.
e.
All persons except insurance companies, certain banking institutions, stockbrokers, and commodity brokers.
-Chapter 7
 11. Chapter 9
 12. Chapter 11
 13. Chapter 12
 14. Chapter 13

Accepted Answer

The answer of MATCHING
Match each statement with the correct item...

Question 6

A debtor must be able to document the debtor's identity with a photo ID if requested by the bankruptcy court, the United States trustee, or the case trustee.

Accepted Answer

The answer of A debtor must be able to document...

Question 7

A creditor may file a notice in a bankruptcy case indicating the address to be used by all parties for giving that creditor notice in that particular bankruptcy case.

Accepted Answer

This is true. When a creditor files a notice in a bankruptcy case to indicate their address for receiving notices, it will be used by all parties involved in that particular bankruptcy case.

Question 8

In cases under Chapters 7, 11, and 13, an individual debtor must, upon the request of the bankruptcy court or the United States trustee, file copies of all federal tax returns due while the case is pending.

Accepted Answer

This statement is true. Under the Bankruptcy Code, an individual debtor must provide copies of federal tax returns due during the bankruptcy case upon request from the court or the United States trustee. This helps ensure that the debtor's income and financial affairs are being properly disclosed and evaluated during the bankruptcy proceedings.

Question 9

When interviewing a prospective debtor, a paralegal should inquire whether an individual has been a debtor in a case pending within the past year, because that may affect whether the automatic stay goes into effect and the duration of the stay.

Accepted Answer

This information is relevant because if an individual has been a debtor in a case pending within the past year, the automatic stay may not go into effect immediately. Additionally, if the individual has had multiple cases pending within the past year, the duration of the stay may be limited. Therefore, it is important for a paralegal to ask about any recent bankruptcy filings when interviewing a prospective debtor.

Question 10

What is the effect of a debtor in a case under Chapter 7 and Chapter 13 failing to complete an instructional course in personal financial management?

Accepted Answer

The answer of What is the effect of a debtor...

Question 11

A creditor may send a notice to any bankruptcy court indicating the address that must be used by every bankruptcy court in giving notices to that creditor.

Accepted Answer

This is true according to 11 U.S. Code § 342(c). A creditor may submit a notice of the address to be used by every bankruptcy court in giving notices to that creditor.

Question 12

How long prior to a bankruptcy filing does an individual debtor have to receive a briefing from an approved nonprofit budget- and credit-counseling agency?

Accepted Answer

The answer of How long prior to a bankruptcy filing...

Question 13

Charles Smithfield, a fifth-grade teacher, was unable to pay his bills as they came due. If Charles received a briefing on opportunities available for credit counseling from an approved nonprofit budget- and credit-counseling agency within the past 180 days, Charles is eligible to file for bankruptcy under Chapter 7, 11, or 13.

Accepted Answer

Receiving a briefing on opportunities available for credit counseling from an approved nonprofit budget- and credit-counseling agency within 180 days prior to filing is a prerequisite for filing for bankruptcy under Chapter 7, 11, or 13, making Charles eligible to file for bankruptcy given he has met this requirement.

Question 14

List several factors to consider when determining whether a debtor should file under Chapter 7 or Chapter 11.

Accepted Answer

The answer of List several factors to consider when determining...

Question 15

The Waterfront Fish Market was incorporated under the laws of Delaware. For many years the market was able to show a small profit. About a year ago a new fish market opened nearby and the Waterfront Fish Market lost some of its customers. For the past several months, the market has been unable to pay its creditors. The market could file for bankruptcy under Chapter 7, 11, or 13.

Accepted Answer

Chapter 13 bankruptcy is only available to individuals, not businesses like the Waterfront Fish Market. The market could file under Chapter 7 or 11.

Question 16

List the documents that must be filed within 45 days of the filing of a petition by an individual debtor in a Chapter 7 or Chapter 13 case in order to prevent the case from being dismissed automatically.

Accepted Answer

The answer of List the documents that must be filed...

Quiz 4: Information Gathering, Analysis, Counseling, and Drafting