Legal and Social Envir of Bus - Bankruptcy

Mindtap Ch. 16 Bankruptcy Learn Its Which of the following is the proper order for the payment of bankruptcy claims by class from highest priority to lowest priority? A. Secured claims, priority claims, unsecured claims B. Unsecured claims, secured claims, priority claim C. Priority claims, secured claims, unsecured claims D. Secured claims, unsecured claims, priority claims Assuming there are not enough assets to pay the debts of an entire class of creditors, creditors must: A. be paid in equal amounts. B. be paid at a pro rata share. C. be paid based on whoever was first to file their claim. D. forfeit their claim. A debtor who wishes to file a voluntary petition must: (Choose 3 answer choices) A. file the petition and required schedules. B. undergo credit counseling. C. meet eligibility requirements for the Chapter under which they wish to file. D. have more than three creditors. Creditors wishing to file an involuntary petition for a debtor may do so under: A. Chapter 7 only. B. Chapter 13 only. C. Chapter 7, 11, or 13. D. Chapter 7 or Chapter 11. The following are true for Chapter 7 Bankruptcies: (Choose 2 answer choices) A. The debtor must pass the means test. B. It does not use a trustee. C. They cannot be initiated by an involuntary petition. D. They are for individuals. A business filing for a Chapter 11 Bankruptcy must: A. make all payments to creditors through a trustee. B. submit a payment plan for approval by creditors and the court. C. pay all secured and priority claims. D. have at least $1,000,000 in debt. Check Your Understanding A. B. C. D. E. In 2005, bankruptcy reform laws: made student loans dischargeable in bankruptcy. increased the amount of possessions a debtor may retain in bankruptcy. allowed debtors to have more of their debts discharged in bankruptcy. required debtors to pay more of their debts in bankruptcy. Which of the following is the lowest priority of claims in bankruptcy? A. mortgage on a principal residence B. medical debts C. debts for injury caused by drunk driving D. alimony The Bankruptcy Code exempts (limited to a certain dollar amount) which type of property? A. family heirlooms B. cash C. jewelry D. one vehicle per driver in the household Which of the following statements is true about assets in the bankruptcy estate? A. The majority of states give debtors a choice between state and federal exemption guidelines. B. The majority of states require debtors to follow state exemption guidelines instead of federal guidelines. C. In the majority of states, federal and state exemption guidelines are the same. D. The majority of states require debtors to follow federal exemption guidelines instead of state guidelines. Which of these statements are true about involuntary bankruptcy proceedings? Choose 2 answers. A. If an involuntary bankruptcy case is filed frivolously, the petitioner may be liable to the debtor for damages to his reputation. B. If a court dismisses an involuntary bankruptcy case, the filing creditors may be required to pay court and filing costs for the defendant. C. An involuntary bankruptcy case can be filed against a farmer. D. If a debtor has eight or more creditors with at least $1,000 in claims, any one of them may file an involuntary bankruptcy petition. Which of the following debts is non-dischargeable in bankruptcy? A. claims for amounts borrowed by the debtor to pay federal taxes B. unsecured credit card debt C. a personal loan that was used to pay off a car loan D. overdue rent on a primary dwelling The type of bankruptcy where a trustee takes the nonexempt property, sells it, and uses the proceeds to pay the debtor’s general unsecured creditors is called: A. Chapter 13. B. Chapter 11. C. Chapter 12. D. Chapter 7. The type of bankruptcy where an individual who is in debt makes a plan to repay some or all of his creditors is called: A. Chapter 11. B. Chapter 13. C. Chapter 15. D. Chapter 7. Which of the following are objections that a creditor may bring to bankruptcy distribution proceedings? Choose 3 answers. A. An unsecured creditor may object to being paid after a secured creditor if his claim was filed first. B. An unsecured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy. C. A creditor may object to a distribution plan if the debtor has been fraudulent. D. A secured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy. Which of the following are the three basic purposes of bankruptcy laws? Choose 3 answers. A. relief of the burden of debt on a debtor B. fair treatment of creditors C. allowing a struggling business to become more stable D. full repayment of all debt