Debtors' Rights
| Description: Debtors' Rights Quiz | |
| Number of Questions: 15 | |
| Created by: Aliensbrain Bot | |
| Tags: bankruptcy law debtors' rights |
What is the primary purpose of the Bankruptcy Code?
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To provide relief to debtors who are unable to repay their debts.
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To punish debtors for their financial mismanagement.
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To redistribute wealth from creditors to debtors.
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To promote economic growth by encouraging lending.
The Bankruptcy Code is a federal law that provides a process for debtors to reorganize their debts or liquidate their assets in order to satisfy their creditors.
Which of the following is NOT a type of bankruptcy filing under the Bankruptcy Code?
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Chapter 7
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Chapter 11
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Chapter 12
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Chapter 13
Chapter 12 is a type of bankruptcy filing available only to family farmers and fishermen.
What is the difference between a Chapter 7 and a Chapter 13 bankruptcy?
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In Chapter 7, the debtor's assets are liquidated and the proceeds are distributed to creditors, while in Chapter 13, the debtor proposes a plan to repay creditors over time.
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In Chapter 7, the debtor is discharged from all of their debts, while in Chapter 13, the debtor is only discharged from some of their debts.
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In Chapter 7, the debtor can keep all of their assets, while in Chapter 13, the debtor must surrender some of their assets to the bankruptcy trustee.
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In Chapter 7, the debtor is required to file a petition with the bankruptcy court, while in Chapter 13, the debtor is not required to file a petition.
Chapter 7 is a liquidation bankruptcy, while Chapter 13 is a reorganization bankruptcy.
What is the automatic stay?
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A court order that prohibits creditors from taking any collection actions against the debtor.
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A court order that requires the debtor to surrender all of their assets to the bankruptcy trustee.
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A court order that discharges the debtor from all of their debts.
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A court order that allows the debtor to continue operating their business during the bankruptcy process.
The automatic stay is one of the most important protections that the Bankruptcy Code provides to debtors.
What is the discharge?
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A court order that releases the debtor from all of their debts.
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A court order that requires the debtor to repay their debts over time.
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A court order that allows the debtor to keep all of their assets.
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A court order that prohibits creditors from taking any collection actions against the debtor.
The discharge is the ultimate goal of the bankruptcy process.
What are the eligibility requirements for filing for bankruptcy under Chapter 7?
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The debtor must have a regular income.
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The debtor must have a certain amount of debt.
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The debtor must have filed for bankruptcy before.
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The debtor must be unable to repay their debts.
The only eligibility requirement for filing for bankruptcy under Chapter 7 is that the debtor must be unable to repay their debts.
What are the eligibility requirements for filing for bankruptcy under Chapter 13?
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The debtor must have a regular income.
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The debtor must have a certain amount of debt.
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The debtor must have filed for bankruptcy before.
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The debtor must be unable to repay their debts.
The only eligibility requirement for filing for bankruptcy under Chapter 13 is that the debtor must have a regular income.
What is the difference between a secured debt and an unsecured debt?
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A secured debt is backed by collateral, while an unsecured debt is not.
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A secured debt is always a higher priority than an unsecured debt.
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A secured debt can be discharged in bankruptcy, while an unsecured debt cannot.
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A secured debt is always a lower priority than an unsecured debt.
Collateral is property that the debtor pledges to the creditor as security for the debt.
What are the rights of a secured creditor in a bankruptcy case?
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The secured creditor can repossess the collateral if the debtor defaults on the loan.
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The secured creditor can file a proof of claim for the amount of the debt.
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The secured creditor can vote on the debtor's reorganization plan.
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All of the above.
Secured creditors have a number of rights in a bankruptcy case.
What are the rights of an unsecured creditor in a bankruptcy case?
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The unsecured creditor can file a proof of claim for the amount of the debt.
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The unsecured creditor can vote on the debtor's reorganization plan.
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The unsecured creditor can receive a dividend from the liquidation of the debtor's assets.
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All of the above.
Unsecured creditors have a number of rights in a bankruptcy case.
What is a reaffirmation agreement?
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An agreement between the debtor and a creditor in which the debtor agrees to repay the debt after the bankruptcy case is closed.
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An agreement between the debtor and a creditor in which the creditor agrees to reduce the amount of the debt.
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An agreement between the debtor and a creditor in which the creditor agrees to extend the time for repayment of the debt.
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An agreement between the debtor and a creditor in which the creditor agrees to waive the interest on the debt.
Reaffirmation agreements are often used to reaffirm secured debts.
What is a discharge injunction?
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A court order that prohibits creditors from taking any collection actions against the debtor after the discharge is entered.
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A court order that requires the debtor to surrender all of their assets to the bankruptcy trustee.
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A court order that discharges the debtor from all of their debts.
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A court order that allows the debtor to continue operating their business during the bankruptcy process.
The discharge injunction is one of the most important protections that the Bankruptcy Code provides to debtors.
What is the difference between a Chapter 11 reorganization and a Chapter 13 reorganization?
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In Chapter 11, the debtor is a corporation, while in Chapter 13, the debtor is an individual.
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In Chapter 11, the debtor proposes a plan to repay creditors over time, while in Chapter 13, the debtor proposes a plan to liquidate their assets and distribute the proceeds to creditors.
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In Chapter 11, the debtor is required to file a petition with the bankruptcy court, while in Chapter 13, the debtor is not required to file a petition.
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In Chapter 11, the debtor is allowed to continue operating their business during the bankruptcy process, while in Chapter 13, the debtor is not allowed to continue operating their business.
Chapter 11 is a reorganization bankruptcy, while Chapter 13 is a liquidation bankruptcy.
What is a cramdown?
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A court order that forces a secured creditor to accept a lower payment than the amount of the debt.
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A court order that forces an unsecured creditor to accept a lower payment than the amount of the debt.
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A court order that forces a creditor to accept a payment plan that is longer than the original term of the loan.
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A court order that forces a creditor to accept a payment plan that has a lower interest rate than the original loan.
Cramdowns are only allowed in Chapter 11 and Chapter 13 bankruptcy cases.
What is a shadow docket?
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A list of cases that are decided by the Supreme Court without oral argument or a written opinion.
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A list of cases that are decided by the Supreme Court with oral argument but without a written opinion.
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A list of cases that are decided by the Supreme Court with a written opinion but without oral argument.
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A list of cases that are decided by the Supreme Court with both oral argument and a written opinion.
Shadow dockets are often used to decide cases that are considered to be non-controversial or that do not raise any new legal issues.