Multiple Choice Questions

1. When fraud is suspected in a bankruptcy, what must the trustee do?

a. Keep the case open until the issue is resolved.

b. File discovery motions against the debtor.

c. Oppose the debtor’s petition for discharge.

This option would apply if fraud is discovered as opposed to merely suspected.

d. All of these.

2. In bankruptcy cases, which of the following could point to a fraudulent conveyance?

a. Foreign trusts listed on the debtor’s federal tax return.

b. Fully paid loans.

c. Secret off-shore bank accounts in the debtor’s name.

d. All of these.

3. In a business bankruptcy case, which of the following can be used to produce a reasonably accurate list of the business’s assets?

a. Internal balance sheet.

b. Audited balance sheet.

c. Federal income tax return.

d. None of these.

4. Divorce fraud is similar to bankruptcy fraud in that in both a court may divide the assets of which of these?

a. Debtors and creditors.

b. A court trust.

c. Some estate.

d. None of these.

5. The level of scrutiny relative to possible concealed assets in a divorce case compared to a bankruptcy case is which of the following?

a. About the same.

b. Higher.

c. Lower.

d. Always the same because of statutory limitations.