Ch30-TB1-WBL-10e

Ch30-TB1-WBL-10e - Chapter30 BankruptcyLaw

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Chapter 30 Bankruptcy Law N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Bankruptcy law has one goal—to ensure equitable treatment to creditors  who are competing for a debtor’s assets. ANSWER: F PAGE: 605 TYPE: = 2. Bankruptcy proceedings are held in federal bankruptcy courts. ANSWER: T PAGE: 605 TYPE: = 3. Only an individual can be a debtor under Chapter 7. ANSWER: F PAGE: 606 TYPE: N 4. Concealing assets from a bankruptcy court is a crime. ANSWER: T PAGE: 607 TYPE: + 5. A bankruptcy court looks at a debtor’s income to determine whether the  debtor’s petition for bankruptcy constitutes substantial abuse. 45
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46 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY ANSWER: T PAGE: 607 TYPE: N
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CHAPTER 30: BANKRUPTCY LAW 47 6. The filing of a petition for bankruptcy will automatically stay most legal  actions against the debtor. ANSWER: T PAGE: 610 TYPE: = 7. Proof of claims by creditors must normally be filed within one year of the  creditor’s meeting with the debtor following the granting of the order for  relief. ANSWER: F PAGE: 611 TYPE: = 8. The principal duty of a trustee is to liquidate and close up the debtor’s es- tate as quickly as possible. ANSWER: T PAGE: 612 TYPE: = 9. A creditor with a purchase-money security interest may prevail against a  trustee. ANSWER: T PAGE: 613 TYPE: = 10. A trustee has the power to avoid a sale of the debtor’s property. ANSWER: T PAGE: 613 TYPE: N 11. Once a debtor files for bankruptcy, a secured creditor cannot recover more  on a debt than the value of the collateral covering the debt. ANSWER: F PAGE: 615 TYPE: = 12. Classes of debts owed to unsecured creditors are paid in the order of their  priority. ANSWER: T PAGE: 615 TYPE: N 13. In general, the claims of all of the creditors of an estate must be satisfied  before any remaining amounts can be given to the debtor. ANSWER: T PAGE: 615 TYPE: = 14. If the assets in a debtor’s estate in bankruptcy are insufficient to pay fully  all creditors, none of the creditors are paid.
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48 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY ANSWER: F PAGE: 615 TYPE: N
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CHAPTER 30: BANKRUPTCY LAW 49 15. No student loans are dischargeable in a Chapter 7 bankruptcy.
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch30-TB1-WBL-10e - Chapter30 BankruptcyLaw

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