BUS 263 - Final

A mortgage will typically contain:

A description of the property The amount of debt involved

Which of the following debt item(s) are not extinguished by a Chapter 7 bankruptcy?

Alimony

Chapter 11 bankruptcies, which are filed by businesses:

Allow a business to keep operating under reorganization of its activities and debts

A secured creditor is one who

Can take a debtor's property to try to satisfy the debt

The final stage of bankruptcy is known as:

Discharge in bankruptcy

T/F... According to the Statues of Fraud, mortgages may be either oral or in writing

False

T/F... Chapter 13 bankruptcy proceedings are used mainly by businesses

False

Bankruptcy law is what kind of law?

Federal Statutory

When a business lends another business money, it should perfect its security interest by

Filing its financing statement with the state secretary of state

Voluntary Chapter 13 bankruptcies apply to?

Individuals only

In a(an) ____, the debtor makes a minimum monthly payment and more debt can be added to the account over time.

Installment account

A creditor is a person or business who:

Lends money to someone else

Under Chapter 13, which kind of debt is subject to a different repayment schedule?

Long-term, secured debt

If a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the unsecured creditor collects:

Nothing

In the case of bankruptcy, which of the following classes of creditors have highest priority?

Secured creditors

Billy wants to borrow $10,000 to start a male belly dancing business. Creditors are not anxious to lend him the funds. Billy convinces Gary to back-up his credit. Gary is:

The Surety

15. Brandon files for a Chapter 11 bankruptcy on behalf of his company, Brandon's B-B-Q. The company is allowed to continue its operations. During this period Brandon is:

The debtor in possession A trustee

T/F... In the priority of classes of creditors, taxes owed to the government come before any other payments.

True

T/F... Under Chapter 11 proceedings, businesses are forced to sell all company assets to pay outstanding debts.

True

T/F... Under the UCC, a security interest in consumer goods perfects automatically when the consumer signs the agreement.

True

According to the UCC, a creditor may repossess a product in which it has a security interest:

Without judicial process So long as this doesn't cause a breach of peace