Business Law (Chapters 21)

Question 1 5 / 5 pts The most common type..

Business Law (Chapters 21)

Question 1

5 / 5 pts
The most common type of bankruptcy filed by individuals and businesses is Chapter 7.

True

False

Question 2

5 / 5 pts
A record of bankruptcy may remain on one’s record for up to:

5 years.

10 years.

3 years.

7 years.

Question 3

5 / 5 pts
Bankruptcy filings must not be made for the purpose of defrauding creditors.

True

False

Question 4

5 / 5 pts
A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.

True

False

Question 5

5 / 5 pts
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.

Question 6

5 / 5 pts
Chapter 12 bankruptcy was specifically created to adjust the debts of family farmers or fishers who earn a(n) ____________ income.

bi-annual.

annual.

minimal.

large.

Question 7

5 / 5 pts
Insolvency occurs when:

assets equal liabilities.

assets exceed liabilities.

there are no liabilities.

liabilities exceed assets.

Question 8

5 / 5 pts
Sufficiently important debts that need to be paid in full are called:

priority debts.

exempt debts.

major debts.

flexible debts.

Question 9

5 / 5 pts
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

False
Question 1

5 / 5 pts
Examples of debts discharged under Chapter 7 bankruptcy include all of the following EXCEPT:

credit card bills

medical bills.

student loans.

lawsuit judgments

Question 2

5 / 5 pts
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

Question 3

Not yet graded / 5 pts
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.

Question 4

5 / 5 pts
BecauseĀ  priority debts are deemed to be sufficiently important, they are not required to be paid in full.

True

False

Question 5

5 / 5 pts
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.

Question 6

Not yet graded / 5 pts
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.

Question 7

5 / 5 pts
A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.

True

False

Question 8

5 / 5 pts
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.

Question 9

5 / 5 pts
Insolvency occurs when:

assets equal liabilities.

liabilities exceed assets.

assets exceed liabilities.

there are no liabilities.

Question 10

5 / 5 pts
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.
Question 1

5 / 5 pts
Bankruptcy filings must not be made for the purpose of defrauding creditors.

True

False

Question 2

5 / 5 pts
Chapter 15 provides a framework for bankruptcy cases in which foreign countries are involved.

True

False

Question 3

5 / 5 pts
Insolvency occurs when:

assets equal liabilities.

assets exceed liabilities.

there are no liabilities.

liabilities exceed assets.

Question 4

5 / 5 pts
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

Question 5

5 / 5 pts
An individual or business that owes money is said to be a creditor.

True

False

Question 6

5 / 5 pts
A creditor is an individual or business:

who loans money

to which money is owed.

who counts money.

who borrows money.

IncorrectQuestion 7

0 / 5 pts
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

Question 8

5 / 5 pts
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.

Question 9

5 / 5 pts
Insolvency often leads to default.

True

False

Question 10

5 / 5 pts
An example of a debt that is not discharged in bankruptcy is student loans.

True

False
Question 1

5 / 5 pts
Under Chapter 7 of the bankruptcy law, examples of exempt property under federal law include all of the following EXCEPT:

trade tools.

appliances.

vacation homes.

one motor vehicle.

Question 2

5 / 5 pts
The purpose of Chapter 9 is to provide a municipality with a debt repayment plan rather than to require the liquidation of municipal assets.

True

False

Question 3

5 / 5 pts
A voluntary filing occurs when the debtor himself or herself files a bankruptcy petition.

True

False

Question 4

5 / 5 pts
Chapter 15 provides a framework for bankruptcy cases in which foreign countries are involved.

True

False

Question 5

Not yet graded / 5 pts
Define and give examples of secured debts.
Your Answer:

A debt which is used to reduce the risk associated with lending and it provide the security to lenders. Mortgages is the example of secured debt.

IncorrectQuestion 6

0 / 5 pts
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 with interest over a period spanning from three to five years.

True

False

Question 7

5 / 5 pts
In general a debtor may not file for Chapter 7 bankruptcy if he or she had received a bankruptcy discharge in the last_________________:

three years.

eight years.

six years.

five years.

Question 8

5 / 5 pts
Under Chapter 13 examples of priority debts include all of the following EXCEPT:

automobile loans.

alimony and child support.

certain tax obligations.

wages owed to employees.

Question 9

5 / 5 pts
Chapter 11 Bankruptcy is mostly used by_____________:

corporations.

partnerships.

sole proprietorships.

individuals.

Question 10

5 / 5 pts
Bankruptcy filings must not be made for the purpose of defrauding creditors.

True

False

Question 10

Not yet graded / 5 pts
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.

Question 1

5 / 5 pts
Chapter 15 provides a framework for bankruptcy cases in which foreign countries are involved.

True

False

Question 2

5 / 5 pts
Insolvency often leads to default.

True

False

Question 3

5 / 5 pts
Chapter 13 bankruptcy is sometimes referred to as a ______________________:

revision bankruptcy.

reorganization bankruptcy.

realignment bankruptcy.

recharging bankruptcy.

Question 4

5 / 5 pts
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

IncorrectQuestion 5

0 / 5 pts
In general a debtor may not file for Chapter 7 bankruptcy if he or she had received a bankruptcy discharge in the last_________________:

six years.

five years.

three years.

eight years.

Question 6

5 / 5 pts
The purpose of Chapter 15 bankruptcy is to promote _______________between U.S. courts and those of foreign countries in bankruptcy cases.

competition.

creativity.

cooperation.

collaboration.

Question 7

5 / 5 pts
BecauseĀ  priority debts are deemed to be sufficiently important, they are not required to be paid in full.

True

False

Question 8

Not yet graded / 5 pts
Discuss the two types of actions that are prohibited under Chapter 7 of the bankruptcy law.
Your Answer:

Preferential payment and fraudulent transfer are the two types of actions that are prohibited. A debtor transfers his assets to any creditor shortly in preferential payment. An effort to avoid debt by transferring money to another person is called fraudulent transfer.

Question 9

5 / 5 pts
An example of a debt that is not discharged in bankruptcy is student loans.

True

False

Question 10

5 / 5 pts
A secured debt is a loan for which a specific asset is used as collateral, or pledged.

True

False

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