Donna goes through an involuntary bankruptcy proceeding. an involuntary bankruptcy occurs when

Question 1

AAA Auto Repair receives a discharge in bankruptcy, even though some creditors hold judgments on overdue debts against it and others filed actions to collect on overdue debts before the bankruptcy. AAAs discharge will

Choose one answer.

a. neither stop actions nor void judgments regarding overdue debts.

b. only stop actions to collect overdue debts.

c. only void uncollected judgments on overdue debts.

d. stop actions and void judgments regarding overdue debts.

Question 2

Beth files for bankruptcy under Chapter 13. The value of the property to be distributed under the plan is more than the amount of the creditors claims. The court can approve the plan over the objection of

Choose one answer.

a. an unsecured creditor only.

b. any unsecured creditor or the trustee.

c. neither an unsecured creditor nor the trustee.

d. the trustee only.

Question 3

Checkerboard Pizza, Inc. (CPI), files for bankruptcy under Chapter 11. CPIs Chapter 11 plan must contain

Choose one answer.

a. a plan to turn over its future income to the trustee.

b. a certificate proving attendance at a credit-counseling briefing.

c. a provision of adequate means for the plans execution.

d. a statement of preference for one creditor over another.

Question 4

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when

Choose one answer.

a. a debtor files forms designated for the purpose in a bankruptcy court.

b. a debtor is unable to pay his or her debts as they come due.

c. a debtors creditors force the debtor into bankruptcy proceedings.

d. a debtors debts exceed the fair market value of his or her assets.