Indicate whether each of the following statements is true or false by writing T or F in the answer column.
1. Persons familiar with good accounting practices recognize that assets should never exceed liabilities. 1. _________
2. In most instances, when bankruptcy is filed, the debtor’s assets are sold and the money is distributed among the debtor’s creditors to pay the debt that is owed. 2. _________
3. Bankruptcies are governed under both federal and state law. 3. _________
4. All bankruptcy filings are involuntary. 4. _________
5. Chapter 9 bankruptcy is sometimes referred to as straight or liquidation bankruptcy.
5. _________
6. Chapter 13 bankruptcy is sometimes referred to as reorganization bankruptcy.
6. _________
7. A bankruptcy court may disallow a petition for a Chapter 7 bankruptcy if the individual does not meet the standards of the means test. 7. _________
8. All debtors wishing to file for bankruptcy must receive individual or group credit counseling from an approved, not-for-profit, individual or group budget or credit counseling agency. 8. _________
9. In a Chapter 11 bankruptcy, all daily business decisions must be made and implemented by the bankruptcy court. 9. _________
10. Chapter 12 bankruptcy was specifically created to adjust the debts of family farmers or fishers who earn an annual income. 10. _________