1. Which type of debts are NOT dischargable in a Chapter 7 bankruptcy
a. credit card
b. wage claims by employees
c. student loans for college
d. A and C
2. A "debtor in possession" is a term used to describe the bankrupt in a _________________ proceeding involving _________________.
a. Chapter 7...corporate reorganization
b. Chapter 13...personal reorganization
c. Chapter 7...liquidation
d. Chapter 11...corporate reorganization
3. The public policy that is behind the bankruptcy laws is to give the debtor a____.
a. Complete discharge of all their debts
b. Perfection of all security interests held by their creditors
c. Fresh start
d. Release of debt under the ultra vires doctrine
4. In a Chapter 11 proceeding, the bankrupt is the:
a. Creditor b. Debtor-in-possession c. Secured party d. Trustee
5. In a list of priority, which below is the lowest (i.e. last) type of claim to be paid?
b. Existing mortgages on real estate
c. Employee wage claims
d. Domestic support obligations
e. Credit card debt student loan debt
6. John builds and renovates houses for his customers He agrees on February 1, 2014 to renovate Sally's house for $100,000. John commences work on February 15, 2014 and on August 1,2014 Sally pays John $60,00 of what is owed but says she no longer wants the house and will not pay more. John's best strategy is to: file a _______ against _____..
a. Mechanic's lien...the property.
b. Artisan's lien...Sally
c. Writ of attachment...the property.
d. Mechanic's lien.... Sally
7. Sam buys a tennis racket from Sally for $100 and pays for it by writing a check out to her in that amount. She takes it to First National Bank (Sam's account is there) and cashes the check. In order, Sally, First National Bank and Sam are:
a. Payee, drawee, drawer
b. Drawee, drawer, payee
c. Drawee, payee, maker
d. Holder, maker, drawer
8. John signs a mortgage which has three-year fixed rate of interest (6.0%) and after that will "float' based on a published government index until paid off. This is an example of:
a. A fixed rate mortgage
b. A participation loan
c. An adjustable-rate-mortgage
d. An interest only mortgage.
9. A contractual obligation of buyer to make a payment to seller for the price for goods purchased can be terminated entirely by operation of law in the event of___________.
a. A discharge in bankruptcy filed by buyer
b. A discharge in bankruptcy filed by seller
c. Exemption of the contract-covered asset in question under bankruptcy law
d. A prima facie case is established for contractual quid pro quo
10. ______ filed for Chapter 11 bankruptcy and ________ its _____________.
a. Barnes and Noble...accepted ...leases at unprofitable locations
b. American Airlines...rejected...leases at unprofitable locations
c. Barnes and Noble...rejected...collective bargaining contracts with employes
d. Barnes and Noble...rejected...leases at unprofitable locations
Question 1 d.A and C Both the credit cards and the student loans for the college are non-dischargable and the... View the full answer