In 2005, bankruptcy reform laws:

required debtors to pay more of their debts in bankruptcy.

increased the amount of possessions a debtor may retain in bankruptcy.

allowed debtors to have more of their debts discharged in bankruptcy.

made student loans dischargeable in bankruptcy.

Assessment question

Which of the following is the lowest priority of claims in bankruptcy?

alimony

debts for injury caused by drunk driving

medical debts

mortgage on a principal residence

Assessment question

The Bankruptcy Code exempts (limited to a certain dollar amount) which type of property?

cash

jewelry

family heirlooms

one vehicle per driver in the household

Assessment question

Which of the following statements is true about assets in the bankruptcy estate?

The majority of states require debtors to follow state exemption guidelines instead of federal guidelines.

The majority of states require debtors to follow federal exemption guidelines instead of state guidelines.

In the majority of states, federal and state exemption guidelines are the same.

The majority of states give debtors a choice between state and federal exemption guidelines.

Assessment question

Which of these statements are true about involuntary bankruptcy proceedings? Choose 2 answers.

If an involuntary bankruptcy case is filed frivolously, the petitioner may be liable to the debtor for damages to his reputation.

If a court dismisses an involuntary bankruptcy case, the filing creditors may be required to pay court and filing costs for the defendant.

If a debtor has eight or more creditors with at least $1,000 in claims, any one of them may file an involuntary bankruptcy petition.

An involuntary bankruptcy case can be filed against a farmer.

Assessment question

Which of the following debts is non-dischargeable in bankruptcy?

unsecured credit card debt

overdue rent on a primary dwelling

claims for amounts borrowed by the debtor to pay federal taxes

a personal loan that was used to pay off a car loan

Assessment question

The type of bankruptcy where a trustee takes the nonexempt property, sells it, and uses the proceeds to pay the debtor's general unsecured creditors is called:

Chapter 12.

Chapter 7.

Chapter 13.

Chapter 11.

Assessment question

The type of bankruptcy where an individual who is in debt makes a plan to repay some or all of his creditors is called:

Chapter 7.

Chapter 11.

Chapter 13.

Chapter 15.

Assessment question

Which of the following are objections that a creditor may bring to bankruptcy distribution proceedings? Choose 3 answers.

A creditor may object to a distribution plan if the debtor has been fraudulent.

An unsecured creditor may object to being paid after a secured creditor if his claim was filed first.

A secured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy.

An unsecured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy.

Assessment question

Which of the following are the three basic purposes of bankruptcy laws? Choose 3 answers.

relief of the burden of debt on a debtor

fair treatment of creditors

full repayment of all debt

allowing a struggling business to become more stable