Legal Environment Chapter 15

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Lee's equity in his house would be select answer

$75,000

In this case, Lee Park (the debtor) filed a Chapter select answer bankruptcy.

7

Which of the following is a PMSI?

A bank provides John a loan to purchase a refrigerator and retains a security interest in the refrigerator.

Which of the following are objections that a court may have to a discharge of the debtors obligations? Choose 3 answers.

A secured creditor May object to being excluded from the distribution if she had not been notified of the bankruptcy. An unsecured creditor may object to being paid after a secured creditor if his claim was filed first. An unsecured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy.

Failure to pay a debt for having a car bumper replaced and painted to match the car would lead to:

An artisan's lien

Student loans generally select answer dischargeable in bankruptcy

Are not

Adelie is nineteen years old and about to buy her first car from Car Mart, a dealership that finances its own car loans. Adelie has found her perfect car, and at a great price - $7,000. Because Adelie does not have an established credit record, and her income is fairly low, Car Mart tells Adelie that she must have a co-signer to finance the car. Adelie's Aunt Gertrude agrees to co-sign on the car loan. After Adelie has made payments for six months, Adelie renegotiates the terms of the car loan,

Aunt Gertrude will not have to pay because there was a material modification in the loan terms.

Assuming there are not enough assets to pay the debts of an entire class of creditors, creditors must:

Be paid at a pro rata share.

After an extended hospital stay, Jayla is drowning in debt. Jayla decides to file for bankruptcy, because she sees no other way out. Jayla owes $50,000 to Mercy Hospital, $3,000 to Car Mart for her automobile, and $8,000 to VISA. She is behind on payments to every single one of them! When Jayla's bankruptcy is concluded:

Car Mart will be paid first because it is a secured creditor.

A purchase money security interest (PMSI) is created when a seller or lender agrees to extend credit to a buyer for all or part of the purchase price of:

Consumer goods

When used as collateral, a laptop computer used by a family for email, games, and schoolwork would be classified as:

Consumer goods

A secured party who has control will prevail over a secured party who has only filed for these types of collateral:

Deposit accounts, investment property, and letter of credit rights

Because Lee select answer become the sole owner of the house (with responsibility for the mortgage) within the last three years, Lee select answer have a federal maximum equity exemption.

Did Did

Aubrey has been accepted into medical school, a most expensive undertaking. Aubrey has student loans and grants that pay part of the expense, but not all; she still needs $5,000. Aubrey asks her family friend, Clara, if Aubrey can borrow $5,000 and Aubrey insists that Clara take the diamond necklace and keep it until Aubrey repays all of the $5,000. To make sure that Clara's security interest is perfected, Clara needs to:

Do nothing, because she has possession of the necklace.

Myra purchases a refrigerator from Howard Appliances for $800 for use in her home. Myra pays $200 down and signs an installment sales contract with Howard Appliances to finance the $600 balance. The installment sales contract provides that Myra will pay $50 per month until the $600 balance, plus five percent interest, is paid in full. To perfect its security interest in the $600, Howard must:

Do nothing.

The process by which a creditor may take possession of (and usually sell) collateral to satisfy an unpaid debt is called:

Foreclosure

In this situation, given Lee's income, it select answer likely that he would have his case dismissed or converted to a Chapter 13.

Is

This amount of equity select answer lower than the federal limit.

Is

The bankruptcy Code exempts (limited to a certain dollar amount) which type of property?

Jewelry

If Lee had to complete the means test, the Court would deduct select answer expenses from his monthly disposable income to decide whether Lee could pay any of his select answer debt.

Living Unsecured

Which of the following is the lowest priority of claims in bankruptcy?

Medical debts

Wyatt needs $2,000 to go on vacation. After trying unsuccessfully to come up with a plan to obtain the money, Wyatt comes up with the perfect plan: Wyatt offers to have his mother's jewelry collection cleaned for her, but instead, he takes the jewelry to Perfect Pawn Shop and pledges his mother's jewelry collection as collateral for a loan of $2,000. The jewelry is worth $10,000, so Perfect Pawn Shop agrees to the deal, gives Wyatt the $2,000, and keeps the jewelry. Does Perfect Pawn Shop have a

No, because Wyatt does not own the jewelry.

In 2005, bankruptcy reform laws:

Required debtors to pay more of their debts in bankruptcy

A pledge has occurred in which of the following situations?

Sarah allowed her bank to hold a valuable painting that she owns, in exchange for the bank loaning her money.

Under this type of bankruptcy, the debtor is required to file a list of secured and unsecured creditors as well as several other lists, known as select answer

Schedules

Which of the following is the proper order for the payment of bankruptcy claims by class from highest priority to lowest priority?

Secured claims, priority claims, unsecured claims.

Once a secured party has possession of collateral, what may they do? Choose 3 choices.

Sell the goods in a private sale. Sell the goods in a public sale. Retain the gods if less than 60% of the debt is paid.

According to the federal limit in the book, Lee select answer be able to claim a homestead exemption for the full amount of the equity in his home

Should not

A written or authenticated security agreement is a requirement when creating a secured transaction unless:

The secured party has possession or control of the collateral

In this case, Lee's income select answer higher than the state median.

Was not

Lee select answer receive the entire amount of equity in his home.

Would

Under the federal exemptions, Lee normally select answer be allowed some portion of equity in his home.

Would

If the medium income in Lee's state for a single person was $47,000, there select answer a presumption of bankruptcy abuse by Lee.

Would be

Lee's payments to his wife generally select answer be discharge in bankruptcy

Would not

Because of this, there select answer a presumption of bankruptcy abuse.

Would not be

You lost your high-paying corporate job, six months ago when the company went out of business. After being out of work for four months, you finally find a job, but make much less money than you did before. At the same time you were deaths have been rising dramatically due to some medical issues that resulted in large doctor and hospital bills. You start to consider filing for bankruptcy, but are concerned that if you file for bankruptcy you will lose your car. How would you get to work then? Do

Yes, you can reaffirm the debt.

During self-help, a secured party may take the secured collateral from a debtor:

as long as they do not breach the peace.

If a secured party has perfected its interest, it has a legal interest against:

the debtor and other creditors

An attached security interest will legally protect a creditor against:

the debtor.


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