Question 1

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 included only minor changes to bankruptcy law.

Accepted Answer

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 includes the most comprehensive changes to bankruptcy law in over 25 years.

Question 2

In a Chapter 7 proceeding, a bankruptcy trustee may at times take over a debtor's business.

Accepted Answer

The trustee might temporarily take over the debtor's business.

Question 3

One of the requirements before a collective bargaining agreement can be rejected under Chapter 11 is that the debtor has first presented to the employee's representative the proposed changes to the collective bargaining agreement, and the employees reject the changes without good cause.

Accepted Answer

The code provides that a collective bargaining agreement can be rejected only if the debtor has first presented to the employees' representative the proposed changes to the agreement, and the employees reject the changes without good cause.

Question 4

Which of the following titles of the United States Code contains the Bankruptcy Code?

Accepted Answer

Title 11 of the United States Code (U.S.C.) contains the Bankruptcy Code, which is divided into chapters.

Question 5

Which of the following chapters is used as a reorganization of the debtor's financial affairs under supervision of the bankruptcy court?

Accepted Answer

Chapter 11 involves reorganization of the debtor's financial affairs under supervision of the bankruptcy court.

Question 6

In which of the following did Congress make comprehensive changes to bankruptcy law?

Accepted Answer

Congress revised the Bankruptcy Code through the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. This act, spanning over 500 pages, took effect in October 2005.

Question 7

A debtor must be insolvent to file a voluntary petition for bankruptcy under Chapter 7.

Accepted Answer

A debtor does not have to be insolvent, or completely unable to pay, to file for bankruptcy under Chapter 7.

Question 8

Under Chapter 7, liquidation may be voluntary but not involuntary.

Accepted Answer

Under Chapter 7, liquidation may be voluntary or involuntary.

Question 9

Which of the following did the court determine in In re Holsinger, the case in the text in which the debtor requested a waiver of debt-counseling under the Bankruptcy Abuse Prevention and Consumer Protection Act?

Accepted Answer

Among other issues, the court found that the debtor had failed to complete the course at the time of the pertinent hearing and that no matter how compelling the case, the court had no choice but to dismiss the debtor's bankruptcy petition.

Question 10

Which of the following chapters is used for a sale of a debtor's assets by a trustee and the distribution of money to creditors?

Accepted Answer

Chapter 7 involves sale of debtor's assets by trustee and the distribution of money to creditors.

Question 11

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Accepted Answer

In a Chapter 7 bankruptcy proceeding, retirement funds in an IRA or SEP up to $1,171,650 per person are exempt.

Question 12

Which of the following is true regarding the law that is relevant to bankruptcy claims?

Accepted Answer

While bankruptcy law is federal law, state law applies to bankruptcy cases in the sense that state laws regarding debtor's property and creditor claims may apply.

Question 13

If a debtor fails to appear at the Chapter 7 creditors' meeting, the court may refuse to grant the bankruptcy.

Accepted Answer

If the debtor fails to appear at the meeting, the court may refuse to grant the bankruptcy.

Question 14

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Accepted Answer

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Question 15

Congress first addressed bankruptcy relief in the ____.

Accepted Answer

Congress first addressed bankruptcy relief in the Bankruptcy Act of 1898.

Question 16

Assets that a debtor gains after filing a voluntary Chapter 7 bankruptcy petition are generally not part of the bankruptcy estate unless they fall under an exemption.

Accepted Answer

Assets that the debtor gains after filing the petition are generally not part of the bankruptcy estate unless they fall under an exemption.

Question 17

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Accepted Answer

Chapter 15 involves recognition of insolvency proceedings pending in a foreign country and relief for foreign debtors.

Question 18

Chapter 11 reorganization may be involuntary but not voluntary.

Accepted Answer

Like liquidation, reorganization may be voluntary or involuntary.

Question 19

Which of the following is a term used in bankruptcy for debtors who cannot pay their debts in a timely fashion?

Accepted Answer

Bankruptcy law provides an organized method by which insolvent debtors-debtors who cannot pay their debts in a timely fashion-respond to their debts.

Question 20

Before a debtor files for one specific type of relief, the clerk of courts must give the debtor written notice of the other types of relief available.

Accepted Answer

Before a debtor files for one specific type of relief, the clerk of courts must give the debtor written notice of the other types of relief available.

Quiz 32: Bankruptcy and Reorganization

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 included only minor changes to bankruptcy law.

In a Chapter 7 proceeding, a bankruptcy trustee may at times take over a debtor's business.

One of the requirements before a collective bargaining agreement can be rejected under Chapter 11 is that the debtor has first presented to the employee's representative the proposed changes to the collective bargaining agreement, and the employees reject the changes without good cause.

Which of the following titles of the United States Code contains the Bankruptcy Code?

Which of the following chapters is used as a reorganization of the debtor's financial affairs under supervision of the bankruptcy court?

In which of the following did Congress make comprehensive changes to bankruptcy law?

A debtor must be insolvent to file a voluntary petition for bankruptcy under Chapter 7.

Under Chapter 7, liquidation may be voluntary but not involuntary.

Which of the following did the court determine in In re Holsinger, the case in the text in which the debtor requested a waiver of debt-counseling under the Bankruptcy Abuse Prevention and Consumer Protection Act?

Which of the following chapters is used for a sale of a debtor's assets by a trustee and the distribution of money to creditors?

Retirement funds in an IRA are not exempt in a Chapter 7 bankruptcy proceeding.

Which of the following is true regarding the law that is relevant to bankruptcy claims?

If a debtor fails to appear at the Chapter 7 creditors' meeting, the court may refuse to grant the bankruptcy.

Some debts that are dischargeable under Chapter 13 are not dischargeable under Chapter 7.

Congress first addressed bankruptcy relief in the ____.

Assets that a debtor gains after filing a voluntary Chapter 7 bankruptcy petition are generally not part of the bankruptcy estate unless they fall under an exemption.

Which of the following chapters recognizes insolvency proceedings pending in a foreign country and relief for foreign debtors?

Chapter 11 reorganization may be involuntary but not voluntary.

Which of the following is a term used in bankruptcy for debtors who cannot pay their debts in a timely fashion?

Before a debtor files for one specific type of relief, the clerk of courts must give the debtor written notice of the other types of relief available.