1. A Chapter 13 plan may be used to cure defaults on a mortgage while the debtor maintains regular monthly mortgage payments outside of the plan.

True

False

1. A Chapter 13 plan may provide for the payment of principal and interest payments under a long term loan even after the lapse of 5 years from the date the plan is approved, when the due date of the loan falls after completion of the plan.

True

False

1. A Chapter 13 plan:

		Must provide for payment of all debts in full or it is not proposed in good faith.
		May not cure a default in payment of a home mortgage where the lender (secured creditor home mortgagee) has accelerated payment of the loan due date because of default.
		Requires payment of all delinquencies owing to secured creditors in full at confirmation.
		Must provide for the submission to the trustee of necessary future income of the debtor to make payments under the plan.

1. A Chapter 7 debtor may be denied a discharge for any of the following reasons except:

		Failing to file all tax returns
		Failing to attend a Financial Management course
		Filing 2 or more bankruptcy cases in the last year
		Having received a Chapter 7 discharge 6 years ago

1. A Chapter 7 individual debtor may not receive a discharge until completing a post petition financial management course.

True

False

1. A bankruptcy trustee may invest cash of the estate:

		In a savings account or certificate of deposit only.
		However she wants.
		In trust deeds, mutual funds, savings accounts or certificates of deposit.
		In a manner best designed to increase the estate while minimizing the risk of loss to the creditors.

1. A corporate debtor in Chapter 7 does not receive a discharge.

True

False

1. A creditor can request that the Bankruptcy Court order the trustee to examine the acts and conduct of the debtor to determine if grounds exist to deny the debtor a discharge.

True

False

1. A debt arising from a marital property settlement agreement is always dischargeable.

True

False

1. A debtor whose median family income is less than the applicable state median family income must always propose a Chapter 13 plan that is not less than five years in duration unless unsecured claims can be paid in full in less time.

True

False

1. A disclosure statement accompanying a Chapter 11 plan of reorganization should include, among other things, at least a summary of the plan's important terms.

True

False

1. All post petition domestic support obligations must have been paid and all post petition tax returns filed before a Chapter 13 plan can be confirmed.

True

False

1. An executory contract is one where some performance remains to be rendered on all sides.

True

False

1. An individual consumer bankruptcy debtor may not assume a lease of personal property if the trustee does not do so.

True

False

1. An unimpaired class of claims in a Chapter 11 plan is presumed to have accepted the plan of reorganization.

True

False

1. Any party in interest may file a Chapter 13 plan for the debtor if the debtor does not file a plan within the first 100 days.

True

False

1. Chapter 11 is a reorganization vehicle only for large businesses.

True

False

1. For a class to accept a Chapter 11 plan, two-thirds in amount and more than one-half in number of those voting in the class must vote to accept the plan.

True

False

1. If the debtor purchases $750 worth of holiday gifts in November and then files for bankruptcy on January 1 of the following year, that debt is presumed nondischargeable.

True

False

1. In a Chapter 11 case, no specific amount of time is specified within which a debtor-in-possession/trustee must assume or reject an unexpired lease of residential real property or executory contract.

True

False

1. In a Chapter 11 case, the debtor-in-possession:

		is authorized to continue to operate the debtor's business without court approval.
		must cease all operations at the time the petition is filed.
		must surrender all property to the trustee when the petition is filed.
		need not close existing business bank accounts and open new ones.

1. In a Chapter 13 case, unlike a Chapter 11 case:

		Only the trustee can propose a plan.
		The debtor may not continue to operate the business.
		The corporate shareholders of the debtor may not get paid under the plan.
		A trustee is always appointed.

1. In a Chapter 13, property of the estate includes:

		Pre-petition exempt property.
		Post-Petition earnings of the debtor.
		None of the above.
		All of the above.

1. In a Chapter 7 case, an individual debtor will not receive a discharge if she:

		Has previously received a discharge in a Chapter 7 case filed within the past eight years.
		Has not paid all priority claims in full.
		Fails to object to improperly filed claims of creditors.
		If she moves before the case is closed.

1. In a Chapter 7 proceeding, if a trustee does not affirmatively act to assume or reject an executory contract or lease of real or personal property within 60 days after the order for relief is entered, then the contract or lease is deemed rejected without a further court order.

True

False

1. In all cases (under Chapters 7, 11 and 13) a debtor or trustee must make the decision to assume or reject any executory contract within 60 days after the case is commenced.

True

False

1. In order to assume an unexpired lease, the trustee or debtor-in-possession must:

		Cure all defaults.
		Assign the lease.
		All of the above.
		None of the above.

1. Intentional torts are debts that may be excepted from discharge under the Bankruptcy Code.

True

False

1. Operating reports are:

		A form of disclosure statement requiring approval by the bankruptcy court before the proponent of a plan may solicit creditor acceptance.
		A history of how the debtor became insolvent.
		Reports of receipts and disbursements in a Chapter 11 case after the petition is filed.
		Noncumulative income and expense statements showing the financial condition of the debtor at the time the bankruptcy petition is filed.

1. The Chapter 13 debtor does not have to begin making payments to the trustee until his/her plan is confirmed by the court.

True

False

1. The maximum length of time for a Chapter 13 plan, with court approval, is 6 years.

True

False

1. To be considered non-dischargeable, the burden is on the creditor to file an adversary complaint when the debt was obtained through a fraudulent representation, through fraud while the debtor was serving in a fiduciary capacity, through embezzlement or larceny, or as the result of willful and malicious injury.

True

False

1. Which of the following clause or clauses in a lease is/are unenforceable against a trustee in a bankruptcy case.

		A termination clause conditioned on the insolvency of a tenant.
		A termination clause conditioned on the tenant's change in the designated use of the property.
		A clause in a lease prohibiting a Chapter 7 and 11 trustee from damaging the premises.
		All of the above.