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.