Law 332- Unit 2-B Review Exercise (Chapter 31)

Businesses must be technically insolvent to file for bankruptcy relief.

False

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.

False

Under Chapter 13, all debts are dischargeable.

False

Voluntary petitions may be filed to initiate Chapter 7 or Chapter 11, but not Chapter 13, bankruptcies.

False

Under Chapter 7 and Chapter 11

---.all of the choices. b.petitions can be filed voluntarily or involuntarily. c.the automatic stay provision applies. d.the same principles govern the entry of the order for relief.

Bankruptcy relief is provided under state, not federal, law.

False

A voluntary petition in bankruptcy must include

a list of the debtor's creditors and the amount of the debt owed to each.

Any debtor who is eligible for bankruptcy relief under Chapter 7 is eligible under Chapter 11.

True

In a Chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduces it to cash, preserving the interests of the debtor and creditors.

True

Yang files a petition in bankruptcy under Chapter 7. Zhen takes control over her property and reduces it to money for distribution. Zhen is

a bankruptcy trustee.

In addition to financial statements, each voluntary petition in bankruptcy must include

a certificate proving the receipt of credit counseling.

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest. To accomplish this goal, the corporation should file a petition in bankruptcy under Chapter 11 for relief through

a reorganization.

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

allows a debtor to retain possession of his or her assets.

Eligible for relief on a petition in bankruptcy under Chapter 11 is

any debtor who is eligible under Chapter 7, and railroads.

Under Chapter 7, once the proceeds of the bankruptcy estate have been distributed, the debtor's remaining debts

are discharged.

Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for

domestic support.

All bankruptcy proceedings are held in

federal bankruptcy courts.

At the time of the filing of the petition and the time of the filing of the plan, Chapter 13 imposes on the debtor the requirement of

good faith.

An involuntary bankruptcy occurs when a debtor

is forced into bankruptcy proceedings by his or her creditors.

Chapter 7 of the Bankruptcy Code provides for

liquidation proceedings.

With respect to debtors, the main goal of bankruptcy law is to

provide a new start without creditors' claims.

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

puts into place an automatic stay.

Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor's petition for relief can result in

the dismissal of the petition.

Under Chapter 13, a repayment plan must provide for

the same treatment of each claim within a particular class of claim.