Chapter 39_SmithandRoberson14ed_tb

Chapter 39_SmithandRoberson14ed_tb - Chapter 39Bankruptcy...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 39—Bankruptcy TRUE/FALSE 1. Federal district courts may hear all matters collateral to the bankruptcy, even if these matters are not normally permitted to be brought in federal court. ANS: F PTS: 1 2. Within each federal district court is established a bankruptcy court staffed by bankruptcy judges. ANS: T PTS: 1 3. One creditor of a debtor may file a bankruptcy petition as long as the debtor owes him more than $5,000 in unsecured claims. ANS: F PTS: 1 4. An automatic stay will prevent a creditor from creating a lien against the debtor's property. ANS: T PTS: 1 5. A trustee in bankruptcy may sell the property of the debtor's estate. ANS: T PTS: 1 6. Barb has loaned Mark $500, which Mark agreed to repay on January 15, 2008. If Mark filed a volun- tary petition of bankruptcy on August 1, 2007, Barb had a claim as a creditor. ANS: T PTS: 1 7. The doctrine of subordination of claims might result in two unsecured creditors getting unequal pro- portions of their debts paid. ANS: T PTS: 1 8. Any debtors may seek relief under Chapter 7 of the Bankruptcy Code. ANS: F PTS: 1 9. For bankruptcy purposes, insolvency means that debts are greater than assets. ANS: T PTS: 1 10. A fraudulent transfer made on or within two years prior to filing a petition for bankruptcy can be avoided by the trustee. ANS: T PTS: 1 11. Chapter 5 involves liquidation, whereas Chapters 7, 11, 12, and 13 involve reorganization and adjust- ment of debts.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ANS: F PTS: 1 12. In a Chapter 7 proceeding, an unsecured creditor who files a claim with the court after the deadline be- cause he is too busy planning and going on a vacation would be totally unable to collect. ANS: F PTS: 1 13. The debtor alone decides upon the reorganization plan in Chapter 11 proceedings. ANS: F PTS: 1 14. The court will order the appointment of a trustee in a Chapter 11 proceeding only for cause or if the appointment is in the interests of creditors or equity security holders. ANS: T PTS: 1 15. A debtor may not file a plan at any time in a Chapter 11 reorganization. ANS: F PTS: 1 16. The court has the sole right to accept or reject a Chapter 11 plan of reorganization. ANS: F PTS: 1 17. An assignment for the benefit of creditors requires the creditors’ consent ANS: F PTS: 1 18. Once a Chapter 13 plan of reorganization is confirmed, the provisions are binding on the debtor and all of his creditors. ANS: T PTS: 1 19. After reorganization, all debts are forgiven. ANS: F PTS: 1 20. In a Chapter 13 proceeding, only the debtor may submit a plan of reorganization. ANS: T PTS: 1 21. A lien must be satisfied before the property is available to satisfy the claims of unsecured creditors. ANS: T PTS: 1 22. Garnishment is one form of pre-judgment remedy.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/28/2011 for the course ACTG 355 taught by Professor Helenroe during the Fall '10 term at Conception.

Page1 / 16

Chapter 39_SmithandRoberson14ed_tb - Chapter 39Bankruptcy...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online