1.Jo and Anna, who are mother and daughter, are co-owners of Joanna's Frocks. When the bank loaned money to the business, Jo and Anna agreed to be sureties on the loan. Under the loan agreement, Anna will be liable only if Jo defaults on her obligation as a surety. Anna is a __________on the loan.

General guarantor

Special guarantor

Co-surety

Sub-surety

1 points

QUESTION 23

1.In a _______, a creditor must have made reasonable but unsuccessful attempts to collect from the principal before the guarantor can be held liable.

Absolute guaranty.

Unconditional guaranty.

Conditional guaranty.

Satisfaction guaranty.

1 points

QUESTION 24

1.A lien for the value of material and labor expended in the construction of buildings and other improvements is a _________.

Artisan's lien.

Mechanic's lien.

Suretyship.

Right of redemption.

1 points

QUESTION 25

1.Jason has filed suit against Luke claiming $50,000 in damages. While the claim is being litigated, Jason can ask the court for a writ to seize property belonging to Luke which could be used to satisfy a judgment. The seizure prevents Luke from selling or otherwise disposing of the property during the proceedings. The writ Jason will ask for is a writ of________________.

Attachment

Attainder

Execution

Garnishment

1 points

QUESTION 26

1.A surety is liable to the creditor as soon as the principal ________.

Enters into the contract.

Makes an initial payment.

Defaults.

Files for bankruptcy.

1 points

QUESTION 27

1.Under the BAPCPA, Congress instituted a mechanism to reduce the ____ of Chapter 7 bankruptcy filings.

Legality.

Accessibility.

Abuse.

Cost.

1 points

QUESTION 28

1.Any creditor who also owes the debtor money may have the right of _______, which allows the creditor to cancel out these obligations.

Redemption.

Execution.

Levy in distress.

Setoff.

1 points

QUESTION 29

1.In an adjustment of debts under Chapter 13, the rights of ____________may not be modified

Secured creditors

Unsecured creditors

Mortgagees

Judicial lien holders

1 points

QUESTION 30

1.An ______ is entered by the bankruptcy judge when he or she finds that the debtor is entitled to the protection of the bankruptcy law.

Order of default.

Notice of removal.

Order of relief.

Judgment.

1 points

QUESTION 31

1.The purpose of the automatic stay is to prevent

Debtors from hiding personal property.

Creditors from collecting on debts.

Creditors from filing involuntary bankruptcy petitions

Creditors from converting a Chapter 11 into a Chapter 7

1 points

QUESTION 32

1.To be eligible for Chapter 13, the debtors secured debts cannot exceed

336900

545900

1010650

3200000

1 points

QUESTION 33

1.Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a Chapter __________bankruptcy.

7 into 13

11 into 7

11 into 13

13 into 11

1 points

QUESTION 34

1.A debtor is presumed to be _____ during the ninety-day period prior to the filing of the petition.

Insolvent.

Under duress.

Incapacitated.

Solvent.

1 points

QUESTION 35

1.Several years ago, Kmart reorganized its business operations under bankruptcy protection. Under which chapter of the Bankruptcy Code did it file?

Chapter 5

Chapter 7

Chapter 11

Chapter 13

1 points

QUESTION 36

1.Creditors are required to file _______ if they are to share in the debtor's estate.

Proof of their claims.

Financial statement.

Articles of Dissolution.

Mechanic's lien.

1 points

QUESTION 37

1.A ______ is an order by the bankruptcy judge that a debtor is relieved of paying specific debts.

Confessed judgment.

Discharge.

Foreclosure.

Liquidation.

1 points

QUESTION 38

1.In a bankruptcy proceeding, creditors' claims are subject to payment according to the _______ established by the bankruptcy law.

Discretion.

Size or amount of the debt.

Priority.

Greatest need for payment.

1 points

QUESTION 39

1.The process of winding up the affairs of a corporation or firm for the purpose of paying its debts and disposing of its assets is known as ________.

Foreclosure.

Garnishment.

Liquidation.

Dissolution.

1 points

QUESTION 40

1.Under Chapter 11, a hearing is held on the confirmation of a debtor's proposed reorganization plan, to determine if it is _________.

In the best interest of the debtor.

Fair and equitable.

The least restrictive means of reorganization.

Subject to liquidation.