Ch40 Bankruptcy Flashcards Preview

Business Law > Ch40 Bankruptcy > Flashcards

Flashcards in Ch40 Bankruptcy Deck (28):
1

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

Cram Down

2

Disallowed transfer to a creditor

Preference

3


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

True

4


2. Only business owners can file for bankruptcy.

False

5


3. A husband and wife must file separate petitions for bankruptcy with the court.

False

6


4. Reorganization proceedings are always voluntary.

False

7


5. Tax claims are always discharged by bankruptcy.

False

8


6. Unsecured claims are those for which creditors have no lien on specific assets.

True

9


7. A debtor's creditors elect a trustee to manage and distribute the debtor's assets during bankruptcy.

True

10


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

False

11


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

True

12


10. Property that may be exempt from bankruptcy may include:

a mechanic's tools and tool chest.

13


11. Chapter ________ bankruptcy provides for liquidation.

7

14


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

13

15


13. Chapter ________ bankruptcy provides for a reorganization plan by which businesses can work out reorganization without immediate liquidation.

11

16

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

Discharge

17

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

Residence

18

CROSSWORD: This is disallowed transfer to a creditor.

Preference

19

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

Educational Loans

20

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

Exempt

21

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

Reorganize

22

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

Fully Secured

23

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

Taxes

24

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

Involuntary

25

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

Cram Down

26

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

Two

27

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

Credit Counseling

28

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

Insurance Companies