Question 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.

Question 2

Afterselection, a bankruptcy interim trustee qualifies by:

Appearing at the meeting of creditors.

Residing in the district where selected.

Posting a bond in the amount set by the United States Trustee within 7 days of selection.

None of the above.

Question 3

In a Chapter 7 case:

The interim trustee can be removed in favor of another trustee by vote of the creditors at the meeting of creditors.

The interim trustee will become the trustee if the Bankruptcy Court has appointed him or her as trustee.

The debtor-in-possession is trustee.

The U.S. Trustee will be the trustee in all cases.

Question 4

Among the Trustee's duties are:

Accounting for all property received.

Disbursing money.

Filing a final report and accounting.

All of the above.

Question 5

A Chapter 7 Trustee may operate the debtor's business:

For a limited period of time with court approval.

When the case is converted to a Chapter 13.

Will never operate a debtor's business.

Until the case is closed.

Question 6

A health care ombudsman is appointed to:

make sure patients pay their bills;

ensure that insurance claims are paid to the estate;

dispose of patient records in a closing health care facility

represent the interests of the patients.

Question 7

A "contested matter" is:

an opposed motion that is treated like an adversary proceeding.

an unopposed noticed motion.

an adversary proceeding initiated by filing a Summons and Complaint.

None of the above.

Question 8

The automatic stay goes into effect:

When the debtor appears at the meeting of creditors.

Following a notice and a hearing.

When the petition is filed.

When a motion for relief from stay is filed.

Question 9

The following is not subject to the automatic stay:

A criminal action.

An action to collect a judgment.

Mailing past due notices to the debtor.

A non-judicial foreclosure sale.

Question 10

Grounds for relief from the automatic stay are:

Filing a bankruptcy petition.

Cause, including lack of adequate protection.

Filing a motion.

All of the above.

Question 11

If a creditor files a motion for relief from stay and a hearing is requested, she is normally entitled to a hearing within:

30 days from the filing of the motion.

60 days from the filing of the motion.

90 days from the filing of the motion.

120 days from the filing of the motion.

Question 12

The automatic stay remains in effect as to property of the estate until:

The case is closed.

The case is dismissed.

In an individual Chapter 7 case, until the debtor receives a discharge, except in certain serial filing situations.

All of the above.

Question 13

A debtor opposing a relief from stay motion may be able to establish adequate protection of a secured creditor's interest by showing:

That the value of the creditor's collateral is substantially more than the creditor is owed.

That the value of the creditor's collateral is worth substantially less than what the creditor is owed.

That the bankruptcy petition is filed.

All of the above.

Question 14

In a relief from stay motion, the:

Creditor has the burden of proof on the issue of adequate protection.

Debtor has the burden of proof on the issue of equity.

Debtor has the burden of proof on all issues.

None of the above.

Question 15

A form of "adequate protection" of a secured creditor's interest in collateral can be:

Cash payments.

Additional collateral.

Replacement collateral.

All of the above.

Question 16

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.

Question 17

Which of the following is not true?

A Chapter 7 debtor's post-petition wages are not property of the estate.

The automatic stay applies to the enforcement of alimony or support obligations.

Exemptions do not apply to the collection of alimony or support obligations.

A non-debtor spouse may object to the dischargeability of obligations arising from marital property settlement agreements.

Question 18

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

Question 19

Property of the estate in a Chapter 7 case does not include:

The principal assets of a valid "spendthrift" trust.

Wages earned by a debtor after the filing of a petition.

All of the above.

None of the above.

Question 20

Property of the estate includes:

Property held by the debtor for a third person.

Property in which the debtor has any legal or equitable interest.

Wages of a Chapter 7 debtor.

None of the above.

Question 21

The policy behind the trustee's "avoiding powers" is:

To give the debtor the right to favor one creditor over another.

To keep bankruptcy filings down.

To give the debtor maximum benefit of exemptions.

To provide the most equitable distribution to creditors of a debtor's assets.

Question 22

One element of an avoidable preference is that:

The transfer must be made within 90 days prior to the filing of the bankruptcy petition if the transferee is not an insider.

The creditor must give new value to the debtor.

The debtor must pay by check.

The creditor must receive money.

Question 23

A preferential transfer may be defensible if:

The creditor has received more than it otherwise would have received had the transfer not been made.

The transfer of the debtor's property to the creditor is made in the ordinary course of business of the debtor and the creditor, according to ordinary business terms.

The creditor offsets its debt.

The creditor transfers to a third party the property of the debtor given to the creditor.

Question 24

A fraudulent conveyance that a trustee may set aside includes a transfer of property of the debtor:

For or on account of an antecedent debt.

As a contemporaneous exchange of property of the debtor for new value given by the creditor.

That renders the debtor insolvent and is a transfer for less than reasonably equivalent value.

None of the above.

Question 25

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.