The United States has always had bankruptcy law in place because of the Bankruptcy Clause in the U.S. Constitution.

True

False

When is a creditor referred to as a secured creditor?

when the creditor has been guaranteed payment by a trustee

when the creditor gives a loan without property securing repayment

when the creditor has a lien on property to secure repayment of a debt

when the creditor has been repaid the debt

The CARES Act includes revisions to certain provisions of the U.S. Bankruptcy Code in an effort to provide better and more effective bankruptcy relief to small businesses.

True

False

Generally, filing bankruptcy stops the collection activity of creditors which helps facilitate the creditor's fresh start.

True

False

When a creditor has a lien on certain property of a debtor, the creditor can enforce a claim against that property upon default by a debtor.

True

False

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 adischarge in bankruptcy.

secured claim enforcement process.

wage garnishment enforcement process.

enforcement of property garnishments.

None of the above.

Debt relief, such as through a bankruptcy system,can do which of the following:

facilitate economic growth.

spur entrepreneurial investment.

encourage individuals to engage in gainful employment.

mitigate the "race to the courthouse" effect outside of bankruptcy proceedings.

All of the above.

None of the above.