MHR 461 ch13
A debtor filing for Chapter 7 bankruptcy must provide a list of all immediate family members because persons such as spouses may be liable for the bankrupt person's debts.
False
After secured creditors are paid, all other creditors share the proceeds of the debtor's estate equally.
False
Bankruptcy in Chapter 13 is usually to be completed in seven years.
False
In a bankruptcy proceeding all creditors must be paid an equal share of the assets available, according to the amount of debt owed.
False
In the priority of classes of creditors, taxes owed to the government come before any other payments.
False
Just as with a Chapter 7 bankruptcy, the debt of a Chapter 13 bankrupt are discharged.
False
Once a bankruptcy is finished, bankrupts are relieved of paying all debts.
False
The creditor is responsible for liquidating all of the debtor's exempt property in bankruptcy proceedings.
False
The final stage of bankruptcy is the dissolution stage.
False
The most common bankruptcy proceeding is known as adjustment of debt.
False
The role of the trustee is to minimize the amount of the debtor's assets available for distribution to creditors.
False
Under Chapter 11 proceedings, businesses are forced to sell all company assets to pay outstanding debts.
False
A bankruptcy is a matter of credit history record for ten years.
True
Bankruptcy in Chapter 13 is usually to be completed in five years.
True
Bankruptcy proceedings may be voluntary or involuntary.
True
Chapter 13 bankruptcy largely involved debt rescheduling.
True
Even though a person is declared bankrupt, he or she will still have to pay back student loans; they are usually not eliminated.
True
Even though a person is declared bankrupt, he or she will still have to pay child support, if they have a legal obligation to do so.
True
In an involuntary bankruptcy, the trustee files the petition for bankruptcy.
True
The creditors with the highest priority in bankruptcy proceedings are the secured creditors.
True
The debts owed to secured creditors have the greatest protection in bankruptcy proceedings.
True
The law governing bankruptcy is federal statutory law.
True
Under a Chapter 11 reorganization, the debtor acts as a trustee.
True
Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
alimony
Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
alimony and child support payments back taxes debts incurred by fraud against creditors fined owed to the government Correct! all of the other choices
The final stage of bankruptcy is known as:
discharge in bankruptcy
Chapter 13 bankruptcy proceedings are used mainly by businesses.
false
The higher the income of a bankrupt, the more likely the debts will be discharged by Chapter 7 bankruptcy rather than by debt repayment over time.
false
The framers of the Constitution specifically made bankruptcy a matter of:
federal law
Once bankruptcy proceedings are finished, the consumer's credit record:
is wiped clean may not mention the first bankruptcy a person has had may note the bankruptcy for up to seven years You Answered may always show that the person went through a bankruptcy Correct Answer none of the other choices
Bankruptcy discharge is:
the final stage of the bankruptcy proceeding for individuals
The primary objective of the trustee is:
to deplete the debtor's estate to protect general creditors first You Answered to ensure that the debtor's exempt property is liquidated to maximize the amount of the debtor's assets that the trustee is paid Correct Answer none of the other choices
The primary objective of the trustee is:
to maximize the amount of the debtor's assets available for distribution to creditors
In Chapter 13 bankruptcy, there is a confirmation plan worked out by the trustee.
true
People who have above average income are more likely to use Chapter 13 bankruptcy rather than Chapter 7.
true
Bankruptcy proceedings hold that transfers of debtor's property ____to the bankruptcy filing are void.
up to 90 days prior