Bankruptcy Basics Day One 04 01 09
(169).webp "Bankruptcy Basics Day One 04 01 09 - Quiz")
This quiz is designed to test the concepts for the Bankruptcy Basics course you have just attended.
Questions and Answers
- 1.
Which of the following types of Proofs of Claim is filed in 90% of all cliams filed by Prommis? (Select One Answer)
- A.
Principal
- B.
Total Debt
- C.
Arrearage
- D.
Amended
Correct Answer
C. ArrearageExplanation
Arrearage is the correct answer because it is the type of Proof of Claim that is filed in 90% of all claims filed by Prommis. This suggests that the majority of claims filed by Prommis involve an arrearage, which refers to the amount of past due payments or unpaid debts.Rate this question:
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- 2.
The POC main includes amount due as of the petition date (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The POC main, which stands for Proof of Claim, includes the amount due as of the petition date. This means that when creditors file a POC, they are required to state the total amount owed to them by the debtor as of the date the bankruptcy petition was filed. This information is crucial for the bankruptcy court to assess the validity and priority of each creditor's claim. Therefore, the statement is true.Rate this question:
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- 3.
Some foreclosure fees and costs are paid post but are considered pre petition debt (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
Foreclosure fees and costs that are paid after the filing of a bankruptcy petition but are related to events that occurred before the petition are considered pre-petition debts. This means that even though the payment is made after the petition, it is still treated as a debt that existed before the bankruptcy filing. Therefore, the statement "Some foreclosure fees and costs are paid post but are considered pre-petition debt" is true.Rate this question:
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- 4.
A confirmation of the plan occurs in all of the following except: (Select One Answer)
- A.
Chapter 13
- B.
Chapter 7
- C.
Chapter 12
- D.
Chapter 11
Correct Answer
B. Chapter 7Explanation
In bankruptcy law, there are different chapters that outline the various types of bankruptcy filings. Chapter 7 bankruptcy involves the liquidation of assets to repay creditors, and it does not require a confirmation of the plan. On the other hand, Chapter 11, Chapter 12, and Chapter 13 bankruptcies involve reorganization or repayment plans, which do require a confirmation of the plan. Therefore, the correct answer is Chapter 7 because it is the only chapter where a confirmation of the plan does not occur.Rate this question:
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- 5.
Escrow advance is a ______ number. (Select One answer)
- A.
Positive
- B.
Negative
- C.
Whole
- D.
Sub Prime
Correct Answer
B. NegativeExplanation
The term "escrow advance" refers to a payment made by the lender on behalf of the borrower for expenses such as property taxes or insurance. Since it is a payment made by the lender, it is considered a liability for the borrower. Therefore, it is a negative number.Rate this question:
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- 6.
Petition Date is also known as Filing Date (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The statement is true because the Petition Date is indeed known as the Filing Date. When a petition is filed, it is typically assigned a specific date, which is referred to as the Petition Date or Filing Date. This date is important as it marks the official submission of the petition and is used for various legal purposes, such as determining timelines and deadlines related to the case.Rate this question:
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- 7.
Which of the following charges are not often found in the portion of the claim paid by the trustee? (Select One answer)
- A.
Payments
- B.
Escrow Shortage
- C.
Post Petition Payments
- D.
None of the Above
Correct Answer
C. Post Petition PaymentsExplanation
Post Petition Payments are not often found in the portion of the claim paid by the trustee. Post Petition Payments refer to the payments made by the debtor after filing for bankruptcy. These payments are usually made to maintain regular monthly expenses such as rent or mortgage payments, utility bills, and other necessary expenses. Since these payments are made by the debtor, they are not typically included in the portion of the claim that is paid by the trustee.Rate this question:
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- 8.
Late charges assessed ________ petition cannot be included in the pre-petition claim. (Fill in the Blank)
- A.
Negative
- B.
Pre
- C.
Positive
- D.
Post
Correct Answer
D. PostExplanation
Late charges assessed post-petition cannot be included in the pre-petition claim. This means that any late charges that are incurred after the filing of the petition cannot be included as part of the claim that existed before the petition was filed. The term "post" refers to events or actions that occur after a certain event, in this case, after the petition was filed.Rate this question:
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- 9.
Suspense/unapplied is a? (Select One Answer)
- A.
Credit
- B.
Debit
- C.
Pending Payment Change
- D.
Negative
Correct Answer
A. CreditExplanation
Suspense/unapplied is a credit because it refers to an amount of money that has been received or recorded but has not been applied to a specific account or transaction yet. This credit can be later applied to the appropriate account or transaction once the necessary information or documentation is obtained.Rate this question:
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- 10.
What does PITI stand for? (Select One Answer)
- A.
Payment, Interest, Time and Insurance
- B.
Principal, Interest, Taxes and Insurance
- C.
Principal, Invoice, Trustee and Insurance
- D.
Payment, Investigate, Trouble and Insurance
Correct Answer
B. Principal, Interest, Taxes and InsuranceExplanation
PITI stands for Principal, Interest, Taxes, and Insurance. This acronym is commonly used in the real estate and mortgage industry to refer to the components of a monthly mortgage payment. The principal is the amount borrowed, the interest is the cost of borrowing, the taxes are property taxes, and the insurance refers to homeowners insurance.Rate this question:
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- 11.
A Chapter 7 bankruptcy is? (Select One Answer)
- A.
Liquidation
- B.
A reorganization
- C.
For secured debts
- D.
Cramdown
Correct Answer
A. LiquidationExplanation
A Chapter 7 bankruptcy refers to the process of liquidation, where a debtor's assets are sold off in order to pay off their debts. This type of bankruptcy is typically used by individuals or businesses who are unable to meet their financial obligations and want a fresh start. Through liquidation, the debtor's assets are distributed among their creditors to satisfy as much of the outstanding debt as possible. This differs from a reorganization bankruptcy, where the debtor's assets are restructured to create a repayment plan, or from secured debts, which are backed by collateral, and cramdown, which is a process of reducing the value of a secured debt.Rate this question:
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- 12.
The primary purpose in filing a chapter 7 is to wipe out? (Select one answer)
- A.
Secured Debt
- B.
Unsecured Debt
- C.
Student Loans
- D.
IRS Payments
Correct Answer
B. Unsecured DebtExplanation
The primary purpose in filing a Chapter 7 bankruptcy is to wipe out unsecured debt. Unsecured debt refers to debts that are not backed by collateral, such as credit card debt, medical bills, and personal loans. By filing for Chapter 7 bankruptcy, individuals can eliminate or discharge these debts, providing them with a fresh start and a chance to rebuild their financial situation. It is important to note that not all types of debt can be wiped out through Chapter 7 bankruptcy, such as secured debt (which is backed by collateral), student loans, and IRS payments.Rate this question:
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- 13.
Debts that cannot be discharged in a chapter 7? (Check two possible answers)
- A.
Student Loan
- B.
Credit Card Debt
- C.
Child Support
- D.
Medical Bills
Correct Answer(s)
A. Student Loan
C. Child SupportExplanation
Student loans and child support are both types of debts that cannot be discharged in a Chapter 7 bankruptcy. Student loans are typically not dischargeable unless the debtor can prove undue hardship, which is a difficult standard to meet. Child support is also not dischargeable as it is considered a priority debt that must be paid. Credit card debt and medical bills, on the other hand, can be discharged in a Chapter 7 bankruptcy.Rate this question:
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- 14.
The options not available in a chapter 7 bankruptcy for secured debts is? (Select One answer)
- A.
Bring arrears current
- B.
Repayment Plan
- C.
Surrender the property
- D.
None of the above
Correct Answer
B. Repayment PlanExplanation
In a Chapter 7 bankruptcy, the options available for secured debts do not include a repayment plan. In Chapter 7 bankruptcy, the debtor's non-exempt assets are liquidated to pay off their debts, and secured debts are typically either paid off or the property securing the debt is surrendered. However, a repayment plan is not an option in Chapter 7 bankruptcy as it is more commonly associated with Chapter 13 bankruptcy, which allows debtors to create a plan to repay their debts over a specified period of time.Rate this question:
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- 15.
A reaffirmation is only for which chapter of bankruptcy? (Select One answer)
- A.
Chapter 7
- B.
Chapter 13
- C.
Chapter 11
- D.
Chapter 12
Correct Answer
A. Chapter 7Explanation
A reaffirmation is a legal agreement to repay a debt that would otherwise be discharged in bankruptcy. It is only available for Chapter 7 bankruptcy, which is a type of bankruptcy that allows individuals to eliminate most of their unsecured debts. Chapter 13 bankruptcy involves a repayment plan, while Chapter 11 is primarily for businesses and Chapter 12 is specifically for family farmers and fishermen. Therefore, the correct answer is Chapter 7.Rate this question:
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- 16.
People often file a chapter 13 because there could be debts that cannot be discharged in a chapter 7. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
People often file for Chapter 13 bankruptcy because it allows them to create a repayment plan to pay off their debts over a period of time, usually three to five years. This is beneficial for individuals who have debts that cannot be discharged in a Chapter 7 bankruptcy, such as certain tax debts, student loans, and child support payments. Filing for Chapter 13 allows individuals to reorganize their debts and make manageable payments while still keeping their assets.Rate this question:
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- 17.
The arrears on a secured claim in a chapter 13 are paid between _____ and _____months? (Select two possible answers)
- A.
30
- B.
36
- C.
45
- D.
60
Correct Answer(s)
B. 36
D. 60Explanation
In a Chapter 13 bankruptcy, the arrears on a secured claim can be paid between 36 and 60 months. This means that the debtor has a period of up to 5 years to catch up on any missed payments on their secured debts, such as a mortgage or car loan. The specific length of time within this range will depend on the individual's repayment plan and their ability to make consistent payments.Rate this question:
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- 18.
Chapter 11 is typically for: (Select One Answer)
- A.
Individuals
- B.
Businesses
- C.
Farmers
- D.
Liquidations
Correct Answer
B. BusinessesExplanation
Chapter 11 is typically for businesses because it is a form of bankruptcy that allows businesses to reorganize their debts and continue their operations. It provides a way for businesses to create a repayment plan that allows them to pay off their debts over time while still operating their business. This chapter is designed to help businesses avoid liquidation and closure by providing them with an opportunity to restructure their finances and become financially stable again.Rate this question:
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- 19.
The automatic stay prevents the creditor from accepting payments from the debtor? (True or False )
- A.
TRUE
- B.
FALSE
Correct Answer
B. FALSEExplanation
The automatic stay does not prevent the creditor from accepting payments from the debtor. The automatic stay is a legal protection that prohibits creditors from taking any collection actions against the debtor, such as filing a lawsuit or seizing assets. However, it does not prevent the debtor from voluntarily making payments to the creditor.Rate this question:
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- 20.
Select the one change that did not occur with the reform bill of 2005 (Select One answer)
- A.
Means test to determine ability to repay debts owed
- B.
Debtors pay secured loans per the value of the property
- C.
More limitations to stop abusive filings
- D.
Increased filing requirements
Correct Answer
B. Debtors pay secured loans per the value of the propertyExplanation
The reform bill of 2005 introduced several changes to bankruptcy laws, including means testing to determine the ability to repay debts, more limitations to prevent abusive filings, and increased filing requirements. However, one change that did not occur with the reform bill of 2005 was debtors paying secured loans per the value of the property. This means that the value of the property would not be a determining factor in the repayment of secured loans.Rate this question:
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- 21.
A proof of claim is a document prepared by the debtor reflecting the amount owed as of the date of filing. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
B. FALSEExplanation
A proof of claim is not a document prepared by the debtor, but rather by a creditor or a party owed money. It is a formal statement submitted to a bankruptcy court outlining the amount owed by the debtor. Therefore, the correct answer is FALSE.Rate this question:
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- 22.
If the debtor’s plan does not cover our arrears we must file what with the court in a pay per plan jurisdiction? (Select One answer)
- A.
An amended proof of claim
- B.
An objection
- C.
A motion for relief
- D.
A consent order
Correct Answer
B. An objectionExplanation
If the debtor's plan does not cover our arrears, we must file an objection with the court in a pay per plan jurisdiction. This means that we disagree with the proposed plan and want to voice our concerns or opposition. Filing an objection allows us to present our case and provide reasons why the plan should not be approved. It is a way to protect our interests and ensure that our arrears are properly addressed in the debtor's repayment plan.Rate this question:
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- 23.
In TRUSTEE PAY ALL jurisdictions, the debtor pays the pre-petition payments to the trustee and the post petitions directly to the mortgage company. (True or False )
- A.
TRUE
- B.
FALSE
Correct Answer
B. FALSEExplanation
In TRUSTEE PAY ALL jurisdictions, the debtor does not pay the pre-petition payments to the trustee and the post petitions directly to the mortgage company. This statement is false because in TRUSTEE PAY ALL jurisdictions, the debtor pays all payments, both pre-petition and post-petition, to the trustee who then distributes the funds to the appropriate creditors, including the mortgage company.Rate this question:
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- 24.
A motion to remove the automatic stay is filed by: (Select One Answer)
- A.
A trustee because payments have not been received by the debtor
- B.
Creditor or creditor's attorney due to post petition delinquency
- C.
The debtor's attorney due to non payment of attorney fees
- D.
All of the above
Correct Answer
B. Creditor or creditor's attorney due to post petition delinquencyExplanation
A motion to remove the automatic stay is filed by the creditor or creditor's attorney due to post petition delinquency. This means that the creditor is seeking to lift the automatic stay, which is a legal protection that prevents creditors from taking collection actions against the debtor once they have filed for bankruptcy. The creditor is filing this motion because the debtor has fallen behind on their post-petition payments, indicating that they may not be able to fulfill their financial obligations. By removing the automatic stay, the creditor can resume their collection efforts and potentially recover the debt owed to them.Rate this question:
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- 25.
How many months does a debtor normally have to repay the arrears in a consent order? (Select One Answer)
- A.
3
- B.
6
- C.
9
- D.
12
Correct Answer
B. 6Explanation
A debtor normally has 6 months to repay the arrears in a consent order. This is a common timeframe given to debtors to settle their outstanding debts. It allows them a reasonable amount of time to make the necessary payments and clear their arrears.Rate this question:
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- 26.
The debtor is not required to pay the creditor in order to have MFR withdrawn. (Select One answer)
- A.
Delinquent post petition payments
- B.
Attorney fees for filing MFR
- C.
Late charges due on delinquent payments or post peition
- D.
Pre Petition arrears
Correct Answer
D. Pre Petition arrearsExplanation
The correct answer is "Pre Petition arrears". This means that the debtor does not need to pay the creditor for any debts that were owed before the filing of the petition in order for the Motion for Relief (MFR) to be withdrawn. The MFR is a legal action taken by the creditor to request permission from the court to continue collection efforts despite the debtor's bankruptcy filing. In this case, the debtor is not required to make any payments towards the pre-petition arrears to have the MFR withdrawn.Rate this question:
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- 27.
Meeting of Creditors is held in front of a (Select One answer)
- A.
Judge
- B.
Trustee
Correct Answer
B. TrusteeExplanation
The Meeting of Creditors is held in front of a Trustee. This is because the Trustee is responsible for overseeing the bankruptcy process and representing the interests of the creditors. The Trustee reviews the debtor's financial situation, assets, and liabilities, and ensures that the bankruptcy proceedings are conducted fairly and in accordance with the law. The Trustee also provides an opportunity for creditors to ask questions and voice any concerns they may have regarding the debtor's financial affairs. Therefore, the Meeting of Creditors is conducted in the presence of the Trustee.Rate this question:
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- 28.
How many ways can you access pacer website? (Select One answer)
- A.
1
- B.
2
- C.
3
- D.
More than 3
Correct Answer
D. More than 3Explanation
The answer "more than 3" suggests that there are multiple ways to access the pacer website. It implies that there are at least four or more methods available to access the website. However, without further information, it is not possible to determine the exact number of ways to access the website.Rate this question:
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- 29.
A claim is sometimes necessary in a no asset case. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
In a no asset case, where there are no assets available to distribute to creditors, a claim can still be necessary. This is because creditors may still want to assert their rights and make a formal claim for any potential future assets that may become available. Additionally, filing a claim can help creditors ensure that they are notified of any potential changes in the case or distribution of assets in the future. Therefore, even in a no asset case, it may still be necessary to file a claim.Rate this question:
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- 30.
The PACER contains the entire history for a debtor's bankruptcy filing. (TRUE OR FALSE)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The PACER (Public Access to Court Electronic Records) system is a database that provides access to federal court records, including bankruptcy filings. It contains the entire history of a debtor's bankruptcy filing, making the statement true.Rate this question:
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- 31.
What does “BIG” stand for? (Select One Answer)
- A.
Bankruptcy Insurance Guide
- B.
Bankrupty Information Guide
- C.
Bankruptcy Information Game
- D.
Big Information Guide
Correct Answer
B. Bankrupty Information GuideExplanation
The correct answer is "Bankruptcy Information Guide". The acronym "BIG" in this context stands for a guide that provides information about bankruptcy.Rate this question:
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- 32.
Each Employee is assigned a PACER login by the team supervisor. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The statement is true because it states that each employee is assigned a PACER login by the team supervisor. This implies that every employee is given a unique login to access the PACER system, which is a computer-based public access to court electronic records. This login assignment is typically done by the team supervisor to ensure that each employee has the necessary access and security measures in place to perform their duties effectively.Rate this question:
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- 33.
US. Party/Case Index should be utilized when the Court/Jurisdiction is unknown. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The US Party/Case Index should be utilized when the Court/Jurisdiction is unknown. This means that if you are unsure which court or jurisdiction a case belongs to, you can use the US Party/Case Index to find the relevant information. It is a helpful tool in identifying the court or jurisdiction associated with a particular case.Rate this question:
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- 34.
How we obtain Proof of Claim figures varies from client to client. (True or False)
- A.
TRUE
- B.
FALSE
Correct Answer
A. TRUEExplanation
The statement is true because the process of obtaining Proof of Claim figures can differ depending on the client. Each client may have their own specific requirements or documentation needed to support their claim, resulting in variations in the process.Rate this question:
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- 35.
CLaims are prepared in exception jurisdictions for all of the following except: (Select One answer)
- A.
Local Rule
- B.
Trustee reviews loan documents
- C.
Motion for Relief
- D.
Consent Order
Correct Answer
D. Consent OrderExplanation
Claims are prepared in bankruptcy cases to determine the amount and priority of debt owed to creditors. Local rules provide specific procedures and requirements for filing claims in a particular jurisdiction. The trustee reviews loan documents to verify the validity and accuracy of the claims. A motion for relief is filed by a party seeking relief from the automatic stay in bankruptcy. However, a consent order is not typically used to prepare claims in bankruptcy cases. Instead, a consent order is a legal agreement between parties that resolves a dispute without going to trial.Rate this question:
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- 36.
Which of these can sometimes be utilized in place of a claim? (Select One answer)
- A.
Warranty Deed
- B.
Quit Claim Deed
- C.
Payoff
- D.
A and b
Correct Answer
C. PayoffExplanation
A payoff can sometimes be utilized in place of a claim because it refers to the complete payment of a debt or obligation. In certain situations, instead of making a claim for compensation or damages, the party owed money may choose to accept a payoff to settle the debt or obligation. This can be a mutually agreed-upon resolution that avoids the need for a formal claim process. Therefore, a payoff can serve as an alternative to making a claim in certain circumstances.Rate this question:
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- 37.
In a Chapter 7 Bankruptcy for one of the exception jurisdictions, is a POC necessary if we have obtained relief from stay? (Yes or No)
- A.
YES
- B.
NO
Correct Answer
B. NOExplanation
In a Chapter 7 Bankruptcy for one of the exception jurisdictions, a Proof of Claim (POC) is not necessary if relief from stay has been obtained. This means that if the debtor has been granted permission to proceed with certain actions, such as selling assets or pursuing legal action, then there is no need for creditors to file a POC to assert their claim in the bankruptcy case.Rate this question:
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Jan 28, 2024Quiz Edited by
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Mar 17, 2009Quiz Created by
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