Bankruptcy Law

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

In a bankruptcy proceeding all creditors must be paid an equal share of the assets available, according to the amount of debt owed.

False

Once a bankruptcy is finished, bankrupts are relieved of paying all debts.

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

A person who files bankruptcy may not file again for another eight years.

True

The debts owed to secured creditors have the greatest protection in bankruptcy proceedings.

True

The law governing bankruptcy is federal statutory law.

True

Which 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 govt.

The final stage of bankruptcy is known as:

discharge in bankruptcy

The framers of the Constitution specifically made bankruptcy a matter of:

federal law

Bankruptcy discharge is:

final stage of the bankruptcy proceeding for individuals

Filing for bankruptcy under Chapter 7 of the bankruptcy code results in ____ of debts.

liquidation

Filing for bankruptcy under Chapter 13 of the bankruptcy code results in ____ of debts.

reorganization

The primary objective of the trustee is:

to maximize amount of debtor's assets available for distribution to creditors

Bankruptcy proceedings hold that transfers of debtor's property ____to the bankruptcy filing are void.

up to 90 days prior