Bankruptcy
Under the Fair Credit Reporting Act, the federal statute that regulates credit reporting agencies, a bankruptcy filing as a public record can appear on the debtor's credit history for __ years following date of filing though many credit reporting agencies retain information regarding a Chapter 13 filing for only __ years following filing.
10; 7
The debtor-in-possession has the exclusive right for ___ days following the order for relief to file a proposed plan of reorganization.
120
A debtor's Chapter 13 plan must be filed with the petition or within how many days thereafter?
14
If the debtor-in-possession does file a proposed plan during the exclusivity period then no competing plan can be filed until ___ after the petition is filed.
180
Once a debtor receives a discharge in Chapter 13, how soon can he or she file another Chapter 13 case?
2 years
The term of a Chapter 13 plan may be for:
3-5 years
The debtor must commence making payments under the plan within how many days of filing the petition or the proposal of a plan, whichever is earlier?
30
Which of the following debtors may be eligible to file a Chapter 13 bankruptcy? Choose as many as apply.
An individual who is paid on commission. Correct! An individual with an income sufficiently stable to make payments under a plan. Correct! An individual who is retired.
Which of the following debtors may be eligible to file a Chapter 13 bankruptcy? Choose as many as apply:
An individual who is retired Correct! An individual with an income sufficiently stable to make payments under a plan Correct! An individual who is paid on commission
Failing to abide by a lawful court order can lead to which of the following consequences:
Both
Which of the bankruptcy proceedings is the most complex, time-consuming, and expensive?
Chapter 11
Under which Chapters are debtors considered "debtors in possession" as defined in the Bankruptcy Code? Choose as many as apply.
Chapter 11 Chapter 12
After which type of bankruptcy proceeding will a business cease to exist?
Chapter 7
Which of the following is not relevant in an inquiry into good faith?
Debtor's political and religious preferences
Which of the following would not apply when a court is choosing whether to dismiss or convert a Chapter 13 case?
Debtor's political and religious preferences
Which of the following debts might be discharged in a Chapter 13 case?
Debts incurred through negligent breach of contract
Which of the following debts might be discharged in a Chapter 7 case?
Debts incurred through negligent breach of contract
Failure to complete a post-petition financial management course can lead to which of the following consequences:
Denial of discharge
A Chapter 13 case can be commenced involuntarily.
False
A debtor must be employed to file a Chapter 13 case.
False
Any obligation arising out of embezzlement or larceny cannot be discharged in bankruptcy but only if accompanied by breach of a fiduciary duty.
False
Chapter 12 bankruptcy may be initiated by an involuntary petition filed by creditors.
False
Chapter 13 debtors are allowed to cram down the amount owed on any undersecured claim to the present value of the collateral.
False
In a Chapter 13 case there is no first meeting of creditors because the debtor normally files a plan along with the petition.
False
Individuals cannot file for Chapter 11 reorganization, only entities.
False
No tax obligation, no matter how old, can be discharged in a Chapter 7 case.
False
Only the standing trustee may object to a Chapter 13 plan being confirmed.
False
The Bankruptcy Code permits a debtor to file proceedings for liquidation only.
False
The bankruptcy trustee cannot challenge a Chapter 13 debtor's calculations of projected disposable income.
False
When arrearages exist on secured claims, the plan must propose to pay both the arrearages and the original obligation in full during the term of the plan
False
The form used by the Chapter 13 debtor to calculate his or her applicable commitment period is:
Official Form 122C-1
The form used by the above median Chapter 13 debtor to determine his or her projected disposable income is:
Official Form 122C-2
BAPCPA made Chapter 12 a permanent part of the Bankruptcy Code.
True
Chapter 13 trustees do not usually bring turnover or avoidance actions for the estate.
True
Debts not listed on debtor's schedules are not discharged in a bankruptcy case.
True
Most objections to a Chapter 13 plan are worked out at the first meeting of creditors.
True
No creditor or other party in interest may file a competing plan in a Chapter 9 bankruptcy case.
True
Partnerships and corporations engaged in farming and fishing can be eligible to file Chapter 12 bankruptcy.
True
Priority claims may be paid in installments over the term of the plan.
True
Priority claims must be paid 100% in a Chapter 13 plan.
True
Student loans are generally nondischargable absent a showing of "undue hardship."
True
The Bankruptcy Code does not place a limit on the duration of a Chapter 11 plan of reorganization.
True
The Chapter 11 debtor in possession is given the turn over and avoidance powers of a bankruptcy trustee.
True
The Chapter 13 Plan provides for payment of creditors from the debtor's future earnings.
True
The Chapter 13 debtor may not incur any non-emergency post-petition debt other than normal living expenses without approval of the standing trustee.
True
The court can dismiss any Chapter 7 case on a showing that the petition was filed in bad faith or on a determination that the filing of the case is an abuse of the system from the totality of the circumstances.
True
The definition of current monthly income for a Chapter 13 debtor is the same as that for a Chapter 7 individual consumer debtor completing the means test.
True
The standing trustee in a Chapter 13 case has additional unique duties not applicable in Chapter 7.
True
To confirm a less than 100% plan under Chapter 13, the plan must result in unsecured creditors receiving at least as much under the plan as they would receive if the debtor's assets were liquidated under Chapter 7.
True
Upon confirmation, the property of the estate vests in the debtor free and clear of any claim or interest of any creditor provided for in the plan unless the plan or the order of confirmation state otherwise.
True
Upon filing of a Chapter 11 petition, a bankruptcy trustee is not immediately appointed.
True
A 100% Chapter 13 plan is one where:
all unsecured claims are paid in full
The required term of a Chapter 13 plan is known as the:
applicable commitment period
The Supreme Court held in Hamilton v. Lanning that computation of the Chapter 13 debtor's projected disposable income over the term of the plan is to take into consideration changes in debtor's income that:
are known or virtually certain to occur
The debtor's right known as cramdown is most commonly applied to:
automobiles
A debtor's unreasonable delay may result in which consequences? Choose as many as apply.
dismissal of bankruptcy filing denial of discharge
In a Chapter 13 plan, the debtor retains enough income to pay his basic living expenses, then turns over the excess income, called __________, to the trustee to be disbursed to creditors as called for in the plan.
disposable income
A debtor doesn't qualify for Chapter 7 if he previously received a discharge under Chapter 7 or Chapter 11 within _____ years preceding the file of this petition.
eight
Which term or phrase describes a proposed plan in which the debtor will be able to make all payments required and will otherwise be able to comply?
feasible
A debtor may not receive a discharge under Chapter 13 within _____ years of a prior discharge under Chapters 7, 11, or 12.
four
Which of the following examines whether the debtor has acted with honesty, integrity, and fairness throughout the bankruptcy process?
good faith
Which term or phrase describes an examination into whether the debtor has acted with honesty, integrity, and fairness throughout the bankruptcy process?
good faith
Which term or phrase describes a discharge that provides relief to a debtor whose failure to complete payments under the plan is beyond his control?
hardship
Which of the following provides relief to a debtor whose failure to complete payments under the plan is beyond his control?
hardship discharge
What type of debtors are eligible to file under Bankruptcy Chapter 9? CHOOSE AS MANY AS APPLY.
municipalities
After confirmation of the Chapter 13 plan, the debtor may not incur which of the following without permission of the standing trustee? Choose as many as apply.
new debt
Which type of lien may be avoided in Chapter 13?
one that impairs an exemption in debtor's property
Which type of claims must be paid in full in the Chapter 13 plan?
priority
Which proceeding involves the rearrangement of a debtor's finances under a court-approved plan?
reorganization
Present value is defined as the:
replacement value
Proposals for payments on secured claims during the plan and beyond are known as: (Choose as many as apply)
ride through Correct! pay through
The creditor's committee in a Chapter 11 case normally consists of how many of the largest unsecured creditors?
seven
A debtor doesn't qualify for Chapter 7 if she previously received a discharge under Chapter 13 or Chapter 12 within _____ years preceding the filing of this petition.
six
The concept that unsecured creditors must receive at least as much under the Chapter 13 plan as they would have received in a Chapter 7 liquidation is known as:
the best interests test
One difference between attorney's fees in a Chapter 13 case and a Chapter 7 case is that in a Chapter 13 case:
the fee agreement must be approved by the court
The Chapter 13 plan of an above median debtor must run five years unless
the plan calls for secured creditors to receive 100% of their allowed claims
The automatic stay in a Chapter 13 case has one major difference from the automatic stay in a Chapter 7 case and that is:
the stay does protect a co-debtor from collection of consumer debt
In what way are most payments during the plan handled?
through the standing trustee
A fiduciary capacity arises when the debtor occupies what type of position as to another? Choose as many as apply.
trust confidence
A debtor may not receive a discharge under Chapter 13 within _____ years of a prior discharge under Chapter 13 or within _____ years of a prior discharge under Chapters 7, 11, or 12.
two; four
A Chapter 13 plan is often referred to by the percentage to be paid of _____ debt.
unsecured
For which type of claims may the Chapter 13 plan propose to create classes which may be treated differently from one another?
unsecured
When may the Chapter 13 debtor receive a discharge?
when the plan is completed
A "Chapter 20" case describes:
where a debtor receives a discharge in Chapter 7 and then soon after files a Chapter 13 case