TJ_Comp 20_TB_Ch35

TJ_Comp 20_TB_Ch35 - Chapter 35BANKRUPTCY TRUE/FALSE 1....

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Chapter 35—BANKRUPTCY TRUE/FALSE 1. Jurisdiction over bankruptcy proceedings is vested in the federal district courts. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 2. In a liquidation proceeding, the debtor's nonexempt assets are collected by the trustee representing the creditors. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. A court can dismiss an individual debtor’s petition if the debtor does not satisfy the means test. . ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. A bank may file a voluntary petition with the bankruptcy court. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 5. An involuntary bankruptcy case is commenced by creditors filing a petition with a bankruptcy court. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. The holder of a claim that is the subject of a bona fide dispute may be counted as a petitioning creditor. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. The creditor(s) filing an involuntary petition always must be owed at least $12,300 and that amount must be unsecured debt. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. An order for relief will be granted in an uncontested involuntary case if within 120 days before the date of the filing of the petition, a custodian has been appointed for the debtor's property. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 9. The filing of an involuntary case petition automatically constitutes an order for relief if the debtor fails to contest the petition within the time specified by the Bankruptcy Code. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. If the debtor is not paying debts as they become due, the debtor may be vulnerable to having an invol- untary petition in bankruptcy filed against it. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 11. The filing of a voluntary, but not an involuntary, petition operates as an automatic stay. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic
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12. A debtor may recover damages against any creditor who filed a bankruptcy petition in bad faith. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. If a trustee is not elected by creditors, an interim trustee will be appointed by the court. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 14. Craig is the principal beneficiary of his aunt's will. If his aunt dies, any property inherited by Craig within six months after the filing of a bankruptcy petition against him passes to the trustee. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 15. The trustee in bankruptcy is selected by the debtor. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 16. The trustee may set aside transfers of debtor's property made within one year of the filing of the peti- tion if the transfer was made to defraud creditors. ANS: T
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch35 - Chapter 35BANKRUPTCY TRUE/FALSE 1....

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