Question 1

Nika operates a sole proprietorship,a corporation,and a partnership.Nika wants to obtain relief for her individual debts and the debts of her corporation and partnership.For each of these,Nika may file a petition in bankruptcy for relief through

Accepted Answer

The answer of Nika operates a sole proprietorship,a corporation,and a...

Question 2

An agreement to pay a debt discharged in bankruptcy is called a workout.

Accepted Answer

The answer of An agreement to pay a debt discharged...

Question 3

A bankruptcy court may deny a discharge based on the debtor's conduct.

Accepted Answer

According to the Bankruptcy Code, a discharge may be denied if the debtor has committed fraud, failed to keep adequate records, falsified records, refused to obey a lawful order of the court, or committed other wrongful conduct.

Question 4

Certain liquidation cases may be converted to repayment plan cases with the consent of the debtor.

Accepted Answer

This statement is true. In a Chapter 7 liquidation case, it is possible for the debtor to convert the case to a Chapter 13 repayment plan case if they meet certain eligibility requirements and with the consent of the bankruptcy court.

Question 5

One of the primary effects of a discharge is to relieve the liability of a co-debtor.

Accepted Answer

The answer of One of the primary effects of a...

Question 6

The procedure for filing a family-farmer bankruptcy plan is very similar to the procedure for filing a repayment plan.

Accepted Answer

The procedure for filing a family-farmer bankruptcy plan is indeed very similar to the procedure for filing a repayment plan. Both require the debtor to submit a plan to repay debts over a specified period of time. However, there are some differences in the requirements and rules for each type of plan.

Question 7

An individual's repayment plan under Chapter 13 can be initiated only by the debtor's filing of a voluntary petition.

Accepted Answer

An individual cannot be forced into a Chapter 13 plan. The filer must voluntarily initiate the process by filing a petition with the bankruptcy court.

Question 8

A reorganization plain is a plan to conserve and administer the debtor's assets in the hope that all of the creditors will eventually be paid in full.

Accepted Answer

The answer of A reorganization plain is a plan to...

Question 9

Discharge of a debt is never denied because of the nature of a claim.

Accepted Answer

The answer of Discharge of a debt is never denied...

Question 10

Mikhail files a petition in bankruptcy.One of the goals of bankruptcy law with respect to a debtor who has "gotten in over his head" is to

Accepted Answer

One of the main goals of bankruptcy law is to provide relief and protection to debtors who are unable to pay their debts. Bankruptcy law allows debtors to discharge certain debts and restructure others in order to provide them with a fresh start and protection from creditors seeking to collect on their debts. The other options, such as encouraging the continued use of credit or shielding assets from creditors, are not necessarily goals of bankruptcy law and could potentially lead to further financial difficulties for the debtor.

Question 11

Certain debts are not dischargeable in bankruptcy.

Accepted Answer

Certain debts, such as most taxes, student loans, child support, and alimony, cannot be discharged in bankruptcy.

Question 12

On the entry of an order for relief in a reorganization case,the creditors generally take over the operation of the debtor's business.

Accepted Answer

On the entry of an order for relief in a reorganization case, a trustee is usually appointed to oversee the debtor's business and manage its assets, rather than the creditors taking over. The trustee's role is to work with the debtor to develop a plan of reorganization that is fair to all parties involved.

Question 13

In a reorganization,a debtor pays a portion of the debts,is discharged of the rest,and is allowed to continue in business.

Accepted Answer

In a reorganization under Chapter 11 bankruptcy, a debtor does pay a portion of the debts, is discharged of the rest, and is allowed to continue in business.

Question 14

For individual debtors,the plan in a reorganization case must be completed before discharge will be granted.

Accepted Answer

In a reorganization case, also known as Chapter 13 bankruptcy, the individual debtor must complete their repayment plan before they can receive a discharge of their debts. This is different from Chapter 7 bankruptcy, where discharge is typically granted a few months after filing.

Question 15

Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of

Accepted Answer

The proceeding is governed by the Bankruptcy Code, which is a federal law. Bankruptcy law is exclusively within the jurisdiction of federal law and is not governed by state law, the U.S. Constitution, or international law.

Question 16

Certain debtors may not qualify to have all debts discharged in bankruptcy.

Accepted Answer

There are certain types of debt that cannot be discharged in bankruptcy, such as child support and most tax debts. Additionally, if a debtor has committed fraud or other improper conduct, those debts may not be discharged.

Question 17

Mabel files a petition in bankruptcy.The initial proceeding on this petition will be in

Accepted Answer

Bankruptcy cases in the United States are handled in federal bankruptcy courts. Thus, Mabel's initial proceeding will also be in a federal bankruptcy court.

Question 18

Nero files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is encompassed by

Accepted Answer

The Bankruptcy Code, which governs bankruptcy proceedings, is found in Title 11 of the United States Code. Therefore, the best choice is D. The other options are not relevant to bankruptcy proceedings.

Question 19

If,within a certain time after a discharge,it is discovered that a debtor concealed property to defraud a creditor,the discharge may be revoked.

Accepted Answer

This is stated in Section 727(a)(2) of the United States Bankruptcy Code.

Question 20

Before obtaining a discharge in bankruptcy,a consumer-debtor must attend a consumer education course (unless such a course is unavailable).

Accepted Answer

This is true. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a consumer-debtor must complete an approved consumer education course before being eligible for a discharge in bankruptcy (unless the course is not available in their area). This is designed to help debtors improve their financial literacy and prevent them from finding themselves in a similar situation in the future.

Quiz 26: Bankruptcy