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Which of the following requirements must be met for creditors to file an involuntary bankruptcy petition under Chapter 7 of the federal Bankruptcy Code?
The primary requirement for a petition of involuntary bankruptcy is that creditors must demonstrate that a debtor has defaulted on repayments of debts. Involuntary petitions must be filed only by creditors who are owed, individually or in the aggregate, at least $16,750 in unsecured, undisputed debt. If there are fewer than 12 creditors, the aggregate threshold of unsecured debt is $16,750; if there are more than 12, at least three who are owed $16,750 in the aggregate must join the petition.
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A reorganization under Chapter 11 of the federal Bankruptcy Code requires all of the following except the:
The primary feature of reorganization under Chapter 11 is to create a plan between the debtor and creditors which best satisfies all parties involved. Liquidation does not occur, and the debtors maintains control of the debtor’s assets.
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Which of the following statements is correct with respect to the reorganization provisions of Chapter 11 of the federal Bankruptcy Code?
Under Chapter 11, a debtor may file voluntarily, or its creditors may file an involuntary petition. Under a voluntary petition, the debtor need not be insolvent, though individuals must pass income tests to determine eligibility. Chapter 11 does not usually involve a trustee, and the debtor has an exclusive right to file a plan in the first 120 days after filing a petition.
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A debtor who filed voluntarily and received a discharge in bankruptcy under the provisions of Ch 7 of the Federal Bankruptcy Code:
An inheritance received within 180 days after the filing of the petition must be surrendered for distribution to the creditors.
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Of the following assets, which would be included in a debtor’s bankruptcy estate in a liquidation proceeding?
Proceeds from life insurance, inheritance or divorce settlement received within 180 days after the filing of the petition are included in the estate.
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Stephen Industries has a few claims pending against a client filing for Chapter 7 Bankruptcy. They are an unsecured claim of $1,300 that was not timely filed as well as a claim on $75,000 principal and accrued interest on a mortgage loan secured by real property. What dollar amount would Stephen receive from these claims?
Stephen would likely only receive the claim for $75,000 as this claim is secured, whereas the unsecured claim was not timely filed. Only additional money left over would be paid.
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