Test Bank for Consumer Bankruptcy Law A
Practical Guide for Students and Professionals,
1e Alexander Hernandez (All Chapters)
Chapter 1
Multiple Choice
1. BAPCPA was signed into law by President George Bush in:
a. 2010
b. 2003
*c. 2005
d. 2009
2. The bankruptcy trustee approves the credit counseling agencies.
a. True.
*b. False
3. Credit counseling agencies require approval by the U.S. Trustee’s Office every _____.
a. six months
*b. twelve months
c. eighteen months
d. three years.
4. The credit counseling class must be completed ___ days before the bankruptcy petition is
filed:
a. fourteen
b. thirty
c. sixty
*d. one hundred eighty
5. Chapter 7 bankruptcy is known as:
a. an exemption bankruptcy.
b. a wage earner’s plan.
c. a payment plan with creditors.
*d. a liquidation.
6. Chapter 13 is known as a wage earner’s plan.
*a. True.
b. False.
1
Information Classification: General
, 7. Domestic support obligations are dischargeable in bankruptcy?
a. True.
*b. False.
c. Only if the debtor filed for Chapter 7.
d. Alimony obligations are dischargeable, but not child support.
8. The Consumer Bankruptcy Reform Act of 2020 has been law since _____.
a. June 1, 2020.
b. July 1, 2020.
c. January 1, 2021.
*d. None of the above.
9. Chapter 9 bankruptcy applies to _____.
a. large corporations.
b. business in the farming or fishing industry.
c. foreign corporations.
*d. municipalities.
10. If a debtor is going to file Chapter 7 or Chapter 13, creditors can continue to call the debtor to
collect on the debt.
a. Yes, even after the bankruptcy has been filed.
*b. Yes, unless a lawyer has been retained or the bankruptcy has been filed.
c. No, because that is a violation of the Fair Debt Collection Practices Act.
d. None of the above.
11. Failure to file a debtor’s tax returns with the bankruptcy petition will result in a dismissal.
a. True.
*b. False
12. Pursuant to 11 U.S.C. §521(a)(2)(A)(i), a debtor shall provide tax returns to the trustee
______
a. within 7 days of filing a bankruptcy petition.
*b. no later than 7 days before the first scheduled 341 Meeting of Creditors.
c. at the time of filing the bankruptcy petition.
d. only if requested as the trustee is a federal employee and has access to the debtor’s tax returns.
Copies usually aren’t requested in order to reduce the risk of fraud.
Short Essay
1. What does BAPCPA stand for?
Answer: Bankruptcy Abuse Prevention Consumer Protection Act
2. What is Chapter 7 known as?
2
Information Classification: General
, Answer: A Chapter 7 bankruptcy is known as a liquidation since non-exempt assets belong to the
bankruptcy estate and is sold by the trustee to compensate creditors. A wage earner’s plan is the
common reference to Chapter 13, which requires income in order to qualify.
3. What are the requirements of the credit counseling and financial management course in
Chapter 7 cases?
Answer: Credit counseling is the first course taken and must be completed within six months of
filing bankruptcy. The second course is known as the financial management course, and the
certificate must be filed within sixty days of the first scheduled 341 Meeting of Creditors.
4. What are the requirements of the credit counseling and financial management course in
Chapter 13 cases?
Answer: The requirements for Chapter 13 cases is the same for Chapter 7, except the debtor must
file the financial management certificate prior to receiving a discharge or the last payment of the
plan being made.
5. Name three major changes caused by BAPCPA.
Answer: Open-ended question: Possible answers include the requirement of passing the Means
Test to qualify for Chapter 7, domestic support obligations, certification by attorneys there is no
presumption of abuse, dismissal for failure to provide the trustee tax returns, extended the
amount of time between discharges, restrictions on the automatic stay for repeat filers, and
reduction of the homestead exemption.
6. Tara did not provide the trustee tax returns, and her case wasn’t dismissed. Give one possible
explanation why.
Answer: Pursuant to 11 U.S.C. §521(a)(2)(A)(i), a debtor shall provide to the trustee tax returns
no later than 7 days before the first scheduled 341 Meeting. If Tara’s case wasn’t dismissed, it’s
most likely because she was not employed during this time period, or did not earn enough that
would require her to file tax returns.
3
Information Classification: General
, Chapter 2 Test Bank
1. The Bankruptcy Code is found in _______.
a. Title 7.
*b. Title 11.
c. Title 13.
d. Title 21.
2. Student loans are an example of secured debt because the debt is attached to the degree
received.
a. True.
*b. False.
3. Important definitions under the Code can be found in Section 101.
*a. True.
b. False.
4. The Milavetz ruling is that:
a. the First Amendment prohibits advertising under a “federal repayment plan.”
*b. the requirements of debt relief agencies under BAPCPA are not a violation of the First
Amendment, and bankruptcy attorneys and law firms are debt relief agencies.
c. §528(a)(4) violates the First Amendment.
d. defines “attorney” under the Code in Section §101(12A).
5. Because law firms compensate paralegals, paralegals are considered petition preparers under
Section 101 of the Code.
a. True.
*b. False.
6. Due to legal training, a petition preparer can give legal advice to an assisted person.
a. True, but only to licensed paralegals with more than ten years of experience.
*b. False.
7. Since alimony isn’t required in every case, unlike child support, alimony can be discharged in
bankruptcy.
a. True.
*b. False.
8. If you paid back a debt owed to your cousin Frank, that could be considered a payment made
to an insider under the Code.
*a. True.
b. False.
9. A car loan is an example of a voluntary lien, so an involuntary lien cannot be placed on the
car.
a. True.
*b. False.
Information Classification: General
Practical Guide for Students and Professionals,
1e Alexander Hernandez (All Chapters)
Chapter 1
Multiple Choice
1. BAPCPA was signed into law by President George Bush in:
a. 2010
b. 2003
*c. 2005
d. 2009
2. The bankruptcy trustee approves the credit counseling agencies.
a. True.
*b. False
3. Credit counseling agencies require approval by the U.S. Trustee’s Office every _____.
a. six months
*b. twelve months
c. eighteen months
d. three years.
4. The credit counseling class must be completed ___ days before the bankruptcy petition is
filed:
a. fourteen
b. thirty
c. sixty
*d. one hundred eighty
5. Chapter 7 bankruptcy is known as:
a. an exemption bankruptcy.
b. a wage earner’s plan.
c. a payment plan with creditors.
*d. a liquidation.
6. Chapter 13 is known as a wage earner’s plan.
*a. True.
b. False.
1
Information Classification: General
, 7. Domestic support obligations are dischargeable in bankruptcy?
a. True.
*b. False.
c. Only if the debtor filed for Chapter 7.
d. Alimony obligations are dischargeable, but not child support.
8. The Consumer Bankruptcy Reform Act of 2020 has been law since _____.
a. June 1, 2020.
b. July 1, 2020.
c. January 1, 2021.
*d. None of the above.
9. Chapter 9 bankruptcy applies to _____.
a. large corporations.
b. business in the farming or fishing industry.
c. foreign corporations.
*d. municipalities.
10. If a debtor is going to file Chapter 7 or Chapter 13, creditors can continue to call the debtor to
collect on the debt.
a. Yes, even after the bankruptcy has been filed.
*b. Yes, unless a lawyer has been retained or the bankruptcy has been filed.
c. No, because that is a violation of the Fair Debt Collection Practices Act.
d. None of the above.
11. Failure to file a debtor’s tax returns with the bankruptcy petition will result in a dismissal.
a. True.
*b. False
12. Pursuant to 11 U.S.C. §521(a)(2)(A)(i), a debtor shall provide tax returns to the trustee
______
a. within 7 days of filing a bankruptcy petition.
*b. no later than 7 days before the first scheduled 341 Meeting of Creditors.
c. at the time of filing the bankruptcy petition.
d. only if requested as the trustee is a federal employee and has access to the debtor’s tax returns.
Copies usually aren’t requested in order to reduce the risk of fraud.
Short Essay
1. What does BAPCPA stand for?
Answer: Bankruptcy Abuse Prevention Consumer Protection Act
2. What is Chapter 7 known as?
2
Information Classification: General
, Answer: A Chapter 7 bankruptcy is known as a liquidation since non-exempt assets belong to the
bankruptcy estate and is sold by the trustee to compensate creditors. A wage earner’s plan is the
common reference to Chapter 13, which requires income in order to qualify.
3. What are the requirements of the credit counseling and financial management course in
Chapter 7 cases?
Answer: Credit counseling is the first course taken and must be completed within six months of
filing bankruptcy. The second course is known as the financial management course, and the
certificate must be filed within sixty days of the first scheduled 341 Meeting of Creditors.
4. What are the requirements of the credit counseling and financial management course in
Chapter 13 cases?
Answer: The requirements for Chapter 13 cases is the same for Chapter 7, except the debtor must
file the financial management certificate prior to receiving a discharge or the last payment of the
plan being made.
5. Name three major changes caused by BAPCPA.
Answer: Open-ended question: Possible answers include the requirement of passing the Means
Test to qualify for Chapter 7, domestic support obligations, certification by attorneys there is no
presumption of abuse, dismissal for failure to provide the trustee tax returns, extended the
amount of time between discharges, restrictions on the automatic stay for repeat filers, and
reduction of the homestead exemption.
6. Tara did not provide the trustee tax returns, and her case wasn’t dismissed. Give one possible
explanation why.
Answer: Pursuant to 11 U.S.C. §521(a)(2)(A)(i), a debtor shall provide to the trustee tax returns
no later than 7 days before the first scheduled 341 Meeting. If Tara’s case wasn’t dismissed, it’s
most likely because she was not employed during this time period, or did not earn enough that
would require her to file tax returns.
3
Information Classification: General
, Chapter 2 Test Bank
1. The Bankruptcy Code is found in _______.
a. Title 7.
*b. Title 11.
c. Title 13.
d. Title 21.
2. Student loans are an example of secured debt because the debt is attached to the degree
received.
a. True.
*b. False.
3. Important definitions under the Code can be found in Section 101.
*a. True.
b. False.
4. The Milavetz ruling is that:
a. the First Amendment prohibits advertising under a “federal repayment plan.”
*b. the requirements of debt relief agencies under BAPCPA are not a violation of the First
Amendment, and bankruptcy attorneys and law firms are debt relief agencies.
c. §528(a)(4) violates the First Amendment.
d. defines “attorney” under the Code in Section §101(12A).
5. Because law firms compensate paralegals, paralegals are considered petition preparers under
Section 101 of the Code.
a. True.
*b. False.
6. Due to legal training, a petition preparer can give legal advice to an assisted person.
a. True, but only to licensed paralegals with more than ten years of experience.
*b. False.
7. Since alimony isn’t required in every case, unlike child support, alimony can be discharged in
bankruptcy.
a. True.
*b. False.
8. If you paid back a debt owed to your cousin Frank, that could be considered a payment made
to an insider under the Code.
*a. True.
b. False.
9. A car loan is an example of a voluntary lien, so an involuntary lien cannot be placed on the
car.
a. True.
*b. False.
Information Classification: General
