The Chapter 7 Filing Self-Quiz








MoCo has filed for bankruptcy protection by submitting its petition in bankruptcy to the court. However, one of its creditors continues to harass the company about suing the firm and sending collection agents to collect its security. If the lender engaged in such an act it would be:
Choice 1 violating the “self-help” rules.
Choice 2 violating the bankruptcy court’s automatic stay.
Choice 3 doing nothing illegal.
Choice 4 acting illegally for harassing the company, but within its rights as a creditor to send a registered collection agent.
Jimmy has been forced into bankruptcy by his creditors. Such a bankruptcy is apt to be:
Choice 1 a Chapter 13 filing.
Choice 2 an involuntary Chapter 11 filing.
Choice 3 an involuntary Chapter 7 filing.
Choice 4 an involuntary Chapter 13 filing.
Toby is the trustee in bankruptcy of NoMoCo. Which of the following tasks is he allowed to do in his attempts to satisfy creditors:
Choice 1 Sell assets.
Choice 2 Lease, rent, or mortgage assets.
Choice 3 Take his payment first.
Choice 4 All of the above.
Doris, the trustee in bankruptcy of GoneFishin’, Inc. has begun paying off creditors from the bankruptcy property. One creditor in particular has been troublesome and annoying to the other creditors. As such, Doris decides to pay off that creditor first to insure that the rest of the process goes smoothly. Such an action by Doris would be:
Choice 1 advisable and allowed under court law and the Code.
Choice 2 recommended, as keeping all parties happy is critical to the proper administration of a bankruptcy estate.
Choice 3 inappropriate unless approved by the bankrupt firm.
Choice 4 illegal and disallowed by the court.
At the meeting between the creditors and the trustee, which of the following items will occur?
Choice 1 The judge will evaluate the list of creditors and review their claims.
Choice 2 The trustee will accept evidence proving each creditor’s claim.
Choice 3 The bankrupt party will have an opportunity to select a different chapter of the bankruptcy code.
Choice 4 All of the above.
Steve has filed for bankruptcy protection under Chapter 7. However, in making his filing, he failed to include one of the debts he owed to his former employer. Because the employer no longer had any regular contact with Steve, he was unaware of the filing and failed to give proof of claim to the trustee. Because of this:
Choice 1 The employer is out of luck and will be unable to pursue the debt from Steve after the bankruptcy is complete.
Choice 2 The employer must move for leave of the court to enter his claim.
Choice 3 Steve will temporarily lose bankruptcy protection until he properly notifies the lender.
Choice 4 The lender’s debt will continue to attach to Steve and will not be discharged.

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