Ch40 Bankruptcy Flashcards Preview

Business Law > Ch40 Bankruptcy > Flashcards

Flashcards in Ch40 Bankruptcy Deck (28)
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1
Q

Reorganization plan imposed by court in spite of creditors’ objections.

A

Cram Down

2
Q

Disallowed transfer to a creditor

A

Preference

3
Q
  1. If the debtor has fewer than 12 creditors, it only takes one of them to force a person into involuntary bankruptcy.
A

True

4
Q
  1. Only business owners can file for bankruptcy.
A

False

5
Q
  1. A husband and wife must file separate petitions for bankruptcy with the court.
A

False

6
Q
  1. Reorganization proceedings are always voluntary.
A

False

7
Q
  1. Tax claims are always discharged by bankruptcy.
A

False

8
Q
  1. Unsecured claims are those for which creditors have no lien on specific assets.
A

True

9
Q
  1. A debtor’s creditors elect a trustee to manage and distribute the debtor’s assets during bankruptcy.
A

True

10
Q
  1. If a debtor involved in bankruptcy proceedings has possession of bailed goods, the true owner cannot recover the property.
A

False

11
Q
  1. Chapter 13 plan attempts to achieve for an individual debtor the same advantages that the business reorganization act gives to a business.
A

True

12
Q
  1. Property that may be exempt from bankruptcy may include:
A

a mechanic’s tools and tool chest.

13
Q
  1. Chapter ________ bankruptcy provides for liquidation.
A

7

14
Q
  1. Chapter ________ bankruptcy provides for a reorganization plan by which individual debtors can work out payment plans without immediate liquidation.
A

13

15
Q
  1. Chapter ________ bankruptcy provides for a reorganization plan by which businesses can work out reorganization without immediate liquidation.
A

11

16
Q

CROSSWORD: If the debtor complies with the court and trustee in bk and all other requirements then the ___________ will be granted.

A

Discharge

17
Q

CROSSWORD: This is one of the most common exempt properties in a bk.

A

Residence

18
Q

CROSSWORD: This is disallowed transfer to a creditor.

A

Preference

19
Q

CROSSWORD: This is a debt that is not discharged. (Sometimes you have to get these to finish college).

A

Educational Loans

20
Q

CROSSWORD: This is property not used to pay off debts.

A

Exempt

21
Q

CROSSWORD: Under chapter 13, the bk laws provide special arrangements that do not result in liquidation but instead allow for ______________.

A

Reorganize

22
Q

CROSSWORD: Claims of a debtor in bk may be classified as ____________, partially secured, or unsecured claims.

A

Fully Secured

23
Q

CROSSWORD: This is one debt that will not be discharged. (Hint: You may this through payroll deductions).

A

Taxes

24
Q

CROSSWORD: There are two kinds of debtors; voluntary and ____________.

A

Involuntary

25
Q

CROSSWORD: This is a court imposed reorganization plan even if a class of creditors objects to the plan.

A

Cram Down

26
Q

CROSSWORD: The federal bankruptcy law has how very definite purposes?

A

Two

27
Q

CROSSWORD: Before debtors may file for bankruptcy, they must complete a 90-minute ____________ session in the six months prior to filing. (Two words)

A

Credit Counseling

28
Q

CROSSWORD: Banks, ________, savings and loan associations, and some municipalities are not eligible to file bankruptcy.

A

Insurance Companies