Mann_BLRB 9_TB_Ch39

Business Law and the Regulation of Business

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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 TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 2. Within each federal district court is established a bankruptcy court staffed by bankruptcy judges. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 3. A bankruptcy petition may be filed by one creditor of a debtor as long as the debtor owes him more than $12,300 in unsecured claims. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 4. An automatic stay would not prevent a creditor from creating a lien against the debtor's property. ANS: F TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 5. A trustee in bankruptcy may sell the property of the debtor's estate. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 6. Bill has loaned Mark $500, which Mark agreed to repay on January 15, 2008. If Mark files a voluntary petition of bankruptcy on August 1, 2007, Bill has a claim as a creditor. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 7. The doctrine of subordination of claims might result in two unsecured creditors getting unequal pro- portions of their debts paid. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 8. A debt is an obligation to pay money owed by a debtor to a creditor. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 9. According to the amendments to the Bankruptcy Act, the U.S. Judicial Conference must adjust for in- flation the dollar amounts of the requirements for filing involuntary cases, priorities, and exemptions every seven years.
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ANS: F TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 10. A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee. ANS: F TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 11. Chapter 7 applies to all debtors, with the exception of railroads, insurance companies, banks, savings and loan associations, homestead associations, and credit unions. ANS: T TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 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 TOP: AICPA BB-Legal | AICPA BB-Resource Management MSC: AACSB Analytic 13. Any person who may be a debtor under Chapter 7, except a stockbroker or a commodity broker but in- cluding railroads, may be a debtor under Chapter 11. ANS: T
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Mann_BLRB 9_TB_Ch39 - Chapter 39-Bankruptcy TRUE/FALSE 1....

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