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Question 1 (1 point) All but one of the following is a purpose of bankruptcy legislation:
Question 1 options: | To allow rehabilitation of debtors. | | To punish recalcitrant debtors. | | To bring about a quick distribution of the debtor’s property among creditors. | | To fairly divide the assets among creditors. |
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Question 2 (1 point) Ken loaned Barb $8,000 and took back a note secured by Barb's car. If Barb files for bankruptcy when the value of the car is $4,500, what is Ken's status? He has a(n):
Question 2 options: | secured claim for $4,500. | | unsecured claim for $4,500. | | secured claim for $8,000. | | unsecured claim for $8,000. |
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Question 3 (1 point) All but which one of the following would be exempt from bankruptcy under the federal law?
Question 3 options: | $500 received in child support. | | A $10,000 truck. | | A $200 cashmere sweater. | | A $300 cocktail ring. |
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Question 4 (1 point) Which of the following debts would be discharged in bankruptcy?
Question 4 options: | Property taxes on a beach house. | | Alimony payments past due. | | Consumer credit loans for a stove. | | Student loans maturing one year prior to bankruptcy filing. |
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Question 5 (1 point) A trustee in bankruptcy may avoid which of the following?
Question 5 options: | Fraudulent transfers. | | Both fraudulent transfers and voidable preferences. | | Automatic stays. | | Voidable preferences. |
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Question 6 (1 point) Regarding priority claims:
Question 6 options: | each claimant in a priority class shares pro rata if the assets cannot satisfy all claims in the class. | | employees have a

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