Question

The most common type of bankruptcy filed by individuals and businesses is Chapter 7.

True

False

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

5 years.

10 years.

3 years.

7 years.

Bankruptcy filings must not be made for the purpose of defrauding creditors.

True

False

A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.

True

False

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.

90 days.

30 days.

360 days.

180 days.

Chapter 12 bankruptcy was specifically created to adjust the debts of family farmers or fishers who earn a(n) ____________ income.

annual.

minimal.

large.

Insolvency occurs when:

Sufficiently important debts that need to be paid in full are called:

Under Chapter 7 bankruptcy the trustee collects the debtor’s exempt property, sells it and dispenses the proceeds to the creditors in a fair manner.

True

Identify and define the two types of bankruptcy filings.

Your Answer:

The first is in which a person has a source of income and he can keep his property. But he has limitations on his debt in 3 to 5 year. The second is in which assets of debtor are liquidated and debt is also vanished with this liquidation.

Chapter 15 provides a framework for bankruptcy cases in which foreign countries are involved.

True

False

Answer 1

bi-annual.

Answer 2

assets equal liabilities.

Answer 3

assets exceed liabilities.

Answer 4

there are no liabilities.

Answer 5

liabilities exceed assets.

Answer 6

priority debts.

Answer 7

exempt debts.

Answer 8

major debts.

Answer 9

flexible debts.

Answer 10

False

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

credit card bills

medical bills.

student loans.

lawsuit judgments

Bankruptcy is the legal state that occurs when a debtor is insolvent, is in default, and is unable to fulfill his or her obligations to pay back his or her creditors.

True

False

Define and give examples of secured debts.

Your Answer:

A type of debt secured by collateral to decrease the danger associated with lending like a mortgage. A pledge is also a good example of secured debt.

Because priority debts are deemed to be sufficiently important, they are not required to be paid in full.

True

False

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

wages owed to employees.

alimony and child support.

certain tax obligations.

automobile loans.

Identify and define the two types of bankruptcy filings.

Your Answer:

Chapter 7 is one of the famous bankruptcy used by individuals. In this bankruptcy trustee is appointed for selling the assets. In chapter 13, individual have steady source of income. In this debtor must settle his debts over a three to five year period. These are used by small businesses. There is no time limit for this filings.

A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.

True

False

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.

five to ten.

one to three.

three to five.

two to four.

Insolvency occurs when:

assets equal liabilities.

liabilities exceed assets.

assets exceed liabilities.

there are no liabilities.

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.

30 days.

360 days.

90 days.

180 days.

Bankruptcy filings must not be made for the purpose of defrauding creditors.

True

False

Chapter 15 provides a framework for bankruptcy cases in which foreign countries are involved.

True

False

Insolvency occurs when:

assets equal liabilities.

assets exceed liabilities.

there are no liabilities.

liabilities exceed assets.

The means test uses a complex formula that measures an individual’s income relative to the median income of the people in the state where he or she resides.

True

False

An individual or business that owes money is said to be a creditor.

True

False

A creditor is an individual or business:

who loans money

to which money is owed.

who counts money.

who borrows money.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 does not allow the bankruptcy court to disallow a petition for a Chapter 7 bankruptcy if the individual filing for bankruptcy earns an income that is too high to meet the standards of the means test.

True

False

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

creativity.

collaboration.

cooperation.

competition.

Insolvency often leads to default.

True

False

An example of a debt that is not discharged in bankruptcy is student loans.

True

False

Answer 11

credit card bills

Answer 12

medical bills.

Answer 13

student loans.

Answer 14

lawsuit judgments

Answer 15

wages owed to employees.

Answer 16

alimony and child support.

Answer 17

certain tax obligations.

Answer 18

automobile loans.

Answer 19

five to ten.

Answer 20

one to three.

Answer 21

three to five.

Answer 22

two to four.

Answer 23

assets equal liabilities.

Answer 24

liabilities exceed assets.

Answer 25

assets exceed liabilities.

Answer 26

there are no liabilities.

Answer 27

assets equal liabilities.

Answer 28

assets exceed liabilities.

Answer 29

there are no liabilities.

Answer 30

liabilities exceed assets.

Answer 31

who loans money

Answer 32

to which money is owed.

Answer 33

who counts money.

Answer 34

who borrows money.

Answer 35

creativity.

Answer 36

collaboration.

Answer 37

cooperation.

Answer 38

competition.

Answer 39

trade tools.

Answer 40

appliances.

Answer 41

vacation homes.

Answer 42

one motor vehicle.

Answer 43

three years.

Answer 44

eight years.

Answer 45

six years.

Answer 46

five years.

Answer 47

automobile loans.

Answer 48

alimony and child support.

Answer 49

certain tax obligations.

Answer 50

wages owed to employees.

Answer 51

corporations.

Answer 52

partnerships.

Answer 53

sole proprietorships.

Answer 54

individuals.

Answer 55

revision bankruptcy.

Answer 56

reorganization bankruptcy.

Answer 57

realignment bankruptcy.

Answer 58

recharging bankruptcy.

Answer 59

six years.

Answer 60

five years.

Answer 61

three years.

Answer 62

eight years.

Answer 63

competition.

Answer 64

creativity.

Answer 65

cooperation.

Answer 66

collaboration.

Business Law (Chapters 21)

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