Question 1(1 point)

An individual or business that owes money is said to be:

a.a creditor

b.a debtor

c.in bankruptcy.

d.a security interest.

Question 2(1 point)

A __________ is an individual or business to which money is owed.

a.creditor

b.lender

c.debtor

d.All of the options are correct.

Question 3(1 point)

Insolvency occurs when:

a.liabilities exceed assets.

b.assets equal liabilities.

c.assets exceed liabilities.

d.there are no liabilities.

Question 4(1 point)

The legal state that occurs when a debtor is insolvent, is in default, and is unable to fulfill his or her obligations to pay back his or her creditors is known as:

a.crediting.

b.liquidation.

c.bankruptcy.

d.None of the options are correct.

Question 5(1 point)

Under a __________ the trustee collects the debtor's nonexempt property, sells it, and dispenses the proceeds to the creditors.

a.discharged bankruptcy

b.Chapter 7 bankruptcy

c.Chapter 13 bankruptcy

d.All of the options are correct.

Question 6(1 point)

A record of a person's bankruptcy may remain in their credit report for:

a.up to 90 days.

b.up to seven years.

c.up to 10 years.

d.up to 20 years.

Question 7(1 point)

Examples of debts discharged under Chapter 7 bankruptcy include all of the following EXCEPT:

a.credit card bills.

b.medical bills.

c.student loans.

d.lawsuit judgments.

Question 8(1 point)

In general a debtor may not file for Chapter 7 bankruptcy if he or she has received a bankruptcy discharge in the last:

a.eight years.

b.six years.

c.five years.

d.three years.

Question 9(1 point)

Liquidation bankruptcy is another name for Chapter __________ bankruptcy.

a.3

b.5

c.7

d.13

Question 10(1 point)

Which act requires that a debtor who wishes to file under any chapter of the bankruptcy law must, unless exempt, receive individual or group credit counseling from an approved, not-for-profit, individual or group budget or credit counseling agency by telephone or online?

a.The Bankruptcy Abuse Prevention and Consumer Protection Act

b.The Chapter 17 Bankruptcy Act

c.The Chapter 13 Bankruptcy Abuse Prevention Act

d.None of the options are correct.

Question 11(1 point)

In a __________ bankruptcy, the debtor proposes a reorganization plan in order to pay back creditors over time.

a.Chapter 17

b.secured debt

c.Chapter 11

d.All of the options are correct.

Question 12(1 point)

Under the provisions of __________ of the federal bankruptcy law, the debtor retains his or her property but agrees to pay back all or a portion of his or her debts over a period spanning from __________ years.

a.Chapter 13, one to three

b.Chapter 13, three to five

c.chapter 12, two to four

d.Chapter 12, five to ten

Question 13(1 point)

Under Chapter 13, examples of priority debts include all of the following EXCEPT:

a.certain tax obligations.

b.alimony and child support.

c.automobile loans.

d.wages owed to employees.

Question 14(1 point)

Under Chapter 9 bankruptcy, a municipality is defined as all of the following types of entity EXCEPT:

a.a political subdivision.

b.a private agency.

c.an instrumentality of a state.

d.a public agency.

Question 15(1 point)

Chapter 15 provides a framework for bankruptcy cases when __________ are involved.

a.municipalities

b.foreign countries

c.farmers and fishermen

d.partnerships

Question 16(1 point)

Chapter 11 bankruptcy is mostly used by__________.

a.corporations

b.sole proprietorships

c.individuals

d.municipalities

Question 17(1 point)

A family farmer under a Chapter 12 bankruptcy can be all of the following EXCEPT a(n):

a.individual.

b.corporation.

c.municipality.

d.partnership.

Question 18(1 point)

Bankruptcy law is divided into __________, which is where they appear in the federal bankruptcy law.

a.books

b.sections

c.chapters

d.branches

Question 19(1 point)

__________interests have priority over __________ interests.

a.Secured, unsecured

b.Unsecured, secured

c.Unperfected, perfected

d.All of the options are correct.

Question 20(1 point)

A voluntary filing occurs when __________ file(s) a bankruptcy petition.

a.the debtor himself or herself

b.the bank

c.a judge

d.the police