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| 1 | |
In a Chapter 13 bankruptcy, how much future income must the debtor turn over to the trustee in order to satisfy outstanding debts? |
| | A) | all, and the trustee distributes it according to a budget. |
| | B) | at least 75% |
| | C) | at least 50% |
| | D) | some portion that varies from case to case |
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| 2 | |
A secured credit card typically requires: |
| | A) | money be deposited in the bank that issues the card. |
| | B) | property be given as collateral for the credit card. |
| | C) | cosigners to secure payment. |
| | D) | a credit score above a specified number. |
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| 3 | |
In a voluntary bankruptcy, what person first indicates what property of the debtor is considered exempt? |
| | A) | the trustee |
| | B) | the debtor |
| | C) | the creditor |
| | D) | the clerk of the court |
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| 4 | |
Jake owes the following creditors to whom he is not making payments: Abco Enterprises - $10,000; Susan - $1000; Big University - $3000; Direct Auto Finance - $5000. Which of these creditors may force Jake into involuntary bankruptcy? |
| | A) | any three |
| | B) | only Abco and Susan, and they alone are insufficient. |
| | C) | any three whose total debt exceeds $11,625. |
| | D) | any three whose total debt exceeds $17,425 |
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| 5 | |
Tina is filing for bankruptcy and owns her grandmother's wedding ring, valued at $3000. Will she be able to keep the ring as exempt property? |
| | A) | No |
| | B) | Yes, if she uses part of her $9,300 exemption for household items. |
| | C) | No, since there is no exemption for jewelry. |
| | D) | Yes, since family heirlooms are exempt. |
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| 6 | |
Farmer Brown is owed $10,000 of unsecured debt by the Green Grain Storage Co. that has filed for liquidation bankruptcy. What priority for payment, if any, does Farmer Brown have? |
| | A) | He is a general unsecured creditor. |
| | B) | He has a $2,100 priority. |
| | C) | He has a $4,650 priority. |
| | D) | He has a $9,300 priority. |
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| 7 | |
Elaine fails to list on her Chapter 7 bankruptcy petition a $5000 debt owed to her sister, Julia. After the bankruptcy is completed, Julia demands payment from Elaine. What is the legal status of this debt? |
| | A) | Elaine owes it since it was not listed. |
| | B) | Elaine does not owe it since it is owed to an insider. |
| | C) | Julia should have objected during the bankruptcy and having failed to do so, the debt is discharged. |
| | D) | Julia cannot compel Elaine to pay an unsecured debt. |
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| 8 | |
Jackson Enterprises files for bankruptcy under Chapter 11. The business is wholly owned by Jackson who spent massive amounts of company money on elaborate "business trips" that appear to be vacations. What actions may the creditors take? |
| | A) | Request a trustee be appointed to conduct an audit and perform other tasks. |
| | B) | Nothing, except request the proceedings be converted to a Chapter 7. |
| | C) | Require Jackson to post a performance bond. |
| | D) | Require criminal fraud charges be brought against Jackson by the Bankruptcy Court. |
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| 9 | |
Jones operates a farm and is also a practicing accountant. Jones wants to file for bankruptcy under Chapter 12. What percentage of his total debt must be farm expenses? |
| | A) | 40% |
| | B) | 50% |
| | C) | 60% |
| | D) | 80% |
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| 10 | |
In order to file under Chapter 13, what is the maximum total debt from all sources that the debtor may have? |
| | A) | $250,000 |
| | B) | $500,000 |
| | C) | $750,000 |
| | D) | $1,000,000 |
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