1. Scholars agree that Chapter 11 should maximize the value of assets but there is disagreement on how to divide the pool of assets.

   True

   False

2 points

QUESTION 2

1. The following aspects of the Bankruptcy Code promote the fresh start:

   		the discharge, exemptions and the automatic stay.
   		the discharge, exemptions, but not the automatic stay.
   		the discharge, the automatic stay but not exemptions.
   		the discharge, exemptions and the means test under the Bankruptcy Abuse Preventions and Consumer Protection Act of 2005.

2 points

QUESTION 3

1. Which of the following is not a policy goal of consumer bankruptcy?

   		equitable distribution of assets among creditors
   		provide the debtor a fresh start
   		equitable distribution of assets among debtors

2 points

QUESTION 4

1. The ________________ school believes that Chapter 11 policy should encompass the interests of a wide array of actors including creditors, but also employees, taxing authorities, suppliers, customers and others impacted by a business failure.

   		Progressive
   		Modernist
   		Reformist
   		Regressive

2 points

QUESTION 5

1. Hope and Fairness are core virtues underlying Chapter 7 bankruptcy.

   True

   False

2 points

QUESTION 6

1. Which of the following is not a social or economic justification for consumer bankruptcy?

   		bankruptcy can serve as consumption insurance
   		bankruptcy can serve as the ultimate social safety net
   		an effective bankruptcy system enhances economic growth
   		without bankruptcy the ability for an individual to work and maximize income potential will be hamptered
   		All of the above are social and economic justifications for consumer bankruptcy

2 points

QUESTION 7

1. Which of the following is true about the Small Business Reorganization Act ("SBRA")?

   		The SBRA will have a standing trustee in all cases.
   		The SBRA will prohibit operators and owners from retaining their ownership interest in the company.
   		Support for the SBRA is a quite partison.
   		The SBRA will add additional hurdles and likely increase the cost for a small business to reorganize.
   		The SBRA will increase the time a small business is in bankruptcy as that should give the business more time to effectively reorganize.

2 points

QUESTION 8

1. Only a fraction of people that could benefit from bankruptcy relief actually file for relief.

   True

   False

2 points

QUESTION 9

1. Which of the following statements is false?

   		Biden and Warren's views on bankruptcy policy gives insight into their respective views on the current state of Democratic Party politics with Biden favoring a return to normalc,, while Warren challenges the system as fundamentally corrupt,
   		Joe Biden supported the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 because too many people were abusing the bankruptcy system.
   		Elizabeth Warren did not support the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 because the law made it more difficult for individuals to seek bankruptcy protection.
   		Joe Biden and Elizabeth Warren both agree that if bankruptcy filing numbers were lowered by the Bankruptcy Abuse Prevention and Consumer Protection Act, then interest rates decline and this would benefit consumers.

2 points

QUESTION 10

1. A basic goal of bankruptcy law is to provide a "fresh start." A key mechanism through which the Bankruptcy Code achieves this goal is the

   		debtor's absolute right to a discharge in bankruptcy.
   		secured claim enforcement process.
   		wage garnishment enforcement process.
   		discharge
   		enforcement of property garnishments.

2 points

QUESTION 11

1. When a company is in financial distress, which of the following options are available to address the financial distress:

   		rescue the company through a liquidating plan in Chapter 11.
   		rescue the company through a liquidation in Chapter 7.
   		rescue the company through a Chapter 13 plan of reorganization.
   		rescue the company through a reorganization of the company's debt.

2 points

QUESTION 12

1. Which of the following statements is true?

   		The creditors' bargain view believes that wealth maximization of a debtor company is one of several primary goals of bankruptcy.
   		Those in the progressive school view the normative goal of bankruptcy as focusing on maximization of return for creditors.
   		Most bankruptcy scholars agree that bankruptcy has no role is enhancing a debtor's pool of assets.
   		None of the above are true because all of the statements are false.
   		All of the above are incorrect choices because all the statements are true.

2 points

QUESTION 13

1. Chapter 11's traditional policy goal is to reorganize or restructure a company.

   True

   False

2 points

QUESTION 14

1. Most consumer bankruptcies are filed under

   		Chapter 9
   		Chapter 13
   		Chapter 7
   		Chapter 11

2 points

QUESTION 15

1. When the government decides to do or not do something, that is referred to as

   		public policy.
   		statutory law.
   		Constitutional law.
   		common law.

2 points

Click Save and Submit to save and submit. Click Save All Answers to save all answers.