Question

If creditor has their lien avoided in a Chapter 7 case the creditor returns to unsecured status.

True

False

Iris received a discharge under a Chapter 7 bankruptcy. She cannot receive another discharge under Chapter 7 for at least

She cannot file another Chapter 7, but could file a Chapter 11 or 13 bankruptcy.

eight years after the prior filing.

six years after the prior filing.

ten years after the prior discharge.

Grand Lighting Co. has filed a petition for voluntary bankruptcy under Chapter 7 of the Code. Which of the following will prohibit creditors from collecting debts that Grand Lighting incurred before the petition was filed?

A reaffirmation agreement

A proof of claim

The means test

None of the above.

Under the priority framework in Chapter 7 withholding taxes are alway treaty as priority claims.

True

False

Most courts have ruled that the debt of an unscheduled unsecured creditor in a Chapter 7 "no asset" case is discharged.

True

False

Non-individual debtors receive a discharge in more than 99 percent of Chapter 7 cases.

True

False

In a Chapter 7 case after all claims have been paid in full with interest the remaining funds on hand reverts to the Federal government.

True

False

A debtor files for Chapter 7 bankruptcy relief. A creditor is owed a debt by the debtor.  Absent the creditor and debtor entering into a reaffirmation agreement, the debtor cannot repay the debt.

True

False

A Chapter 7 debtor's agreement to pay a creditor on a debt after receiving a discharge in bankruptcy is called a

voidable preference.

fresh start.

reaffirmation.

redemption.

Answer 1

Firms in chapter 7 Bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors.

Chapter 11 bankruptcy can be called rehabilitation bankruptcy,it allows the firm the opportunity to reorganise its debt and to try to re-emerge as a healthy organization.

Eight years after the prior filing.

Individual debtors receive a discharge in more than 99 percent of chapter 7 cases.Hence it is False.

A chapter 7 debtor's agreement to pay a creditor on a debt after receiving a disharge in bankruptcy is called a reaffirmation.