Question $11(0\mathrm{.}5$ points$)$

In a Chapter $7$ proceeding, at a meeting of creditors, one of the creditors is elected to take over the debtor's assets.

Question $11$ options:

True

False

Question $12(0\mathrm{.}5$ points$)$

A floating lien is a security interest retained in collateral even when the collateral changes in character, classification, or location.

Question $12$ options:

True

False

Question $13(0\mathrm{.}5$ points$)$

Businesses must be technically insolvent to file for bankruptcy relief.

Question $13$ options:

True

False

Question $14(0\mathrm{.}5$ points$)$

If a debtor's income falls below the median income in the area in which the debtor lives, bankruptcy abuse will be presumed.

Question $14$ options:

True

False

Question $15(0\mathrm{.}5$ points$)$

If there is a presumption of abuse, the trustee must file a motion to dismiss a Chapter $7$ petition or explain why such a motion would not be appropriate.

Question $15$ options:

True

False

Question $16(0\mathrm{.}5$ points$)$

Chapter $7$ of the Bankruptcy Code provides for

Question $16$ options:

a$)$

the adjustment of debts of businesses$$not individuals.

b$)$

the adjustment of debts of individuals$$not businesses.

c$)$

the reorganization of the obligations of the debtor.

d$)$

liquidation proceedings.

Question $17(0\mathrm{.}5$ points$)$

A secured party perfects a claim by filing a financing statement with the debtor.

Question $17$ options:

True

False

Question $18(0\mathrm{.}5$ points$)$

Under Chapter $7,$ the primary effect of a discharge is to

Question $18$ options:

a$)$

extend the time for the debtor's payment of overdue debts.

b$)$

void a judgment on a discharged debt and prohibit an action to collect it$.$

c$)$

force a creditor to obtain a new judgment on a discharged debt.

d$)$

allow a creditor to collect a previous judgment on a discharged debt.

Question $19(0\mathrm{.}5$ points$)$

Petro Refinery asks Quality Bank for a loan to increase its inventory. Quality requires Rose, Petro's president, to sign a personal guaranty to pay the debt if Petro defaults. Rose is a guarantor. The guaranty is required to be in writing because

Question $19$ options:

a$)$

the co$-$signer has a right of contribution.

b$)$

the main purpose rule applies.

c$)$

the debtor has a right of redemption.

d$)$

the main purpose rule does not apply.

Question $20(0\mathrm{.}5$ points$)$

Barth borrows funds from City Bank to pay his tuition. His mother Debi co$-$signs the credit application. After the loan agreement is signed, Barth agrees to a higher rate of interest without telling Debi. She is

Question $20$ options:

a$)$

liable at the higher rate of interest.

b$)$

liable for the principal only.

c$)$

liable at the lower rate of interest.

d$)$

discharged from the agreement.

Question $21(0\mathrm{.}5$ points$)$

Under Chapter $7$ and Chapter $11$

Question $21$ options:

a$)$

petitions can be filed voluntarily or involuntarily.

b$)$

all of the choices.

c$)$

the automatic stay provision applies.

d$)$

the same principles govern the entry of the order for relief.

Question $22(0\mathrm{.}5$ points$)$

A debtor must have title to collateral to give a secured party a security interest in the property.

Question $22$ options:

True

False

Question $23(0\mathrm{.}5$ points$)$

To create an enforceable security interest between Finance Corporation and Global Trade Inc. with a written security agreement, the agreement must contain a description of

Question $23$ options:

a$)$

the creditor.

b$)$

the debtor.

c$)$

all of the choices.

d$)$

the collateral.

Question $24(0\mathrm{.}5$ points$)$

Lending Bank files a financing statement regarding a transaction with Metro Company. To be valid, the financing statement must contain all of the following except

Question $24$ options:

a$)$

Metro's name.

b$)$

Lending's name.

c$)$

a description of the collateral.

d$)$

a statement of the purpose for the transaction.

Question $25(0\mathrm{.}5$ points$)$

When a security interest is perfected, it has priority over any other perfected security interests.

Question $25$ options:

True

False

Question $26(0\mathrm{.}5$ points$)$

Debts that remain after a liquidation are not discharged, and the debtor retains his or her obligation to pay them.

Question $26$ options:

True

False

Question $27(0\mathrm{.}5$ points$)$

In a Chapter $7$ bankruptcy, on a finding that the use of Chapter $7$ would constitute substantial abuse, the court is most likely to

Question $27$ options:

a$)$

force a creditor to obtain a new judgment on a claimed debt.

b$)$

allow a creditor to collect a previous judgment on a disputed debt.

c$)$

dismiss the debtor's petition.

d$)$

extend the time for the debtor's payment of overdue debts.

Question $28(0\mathrm{.}5$ points$)$

To create an enforceable security interest between Mortgage Bank and Nations Property Company with a written security agreement, the agreement must be signed by

Question $28$ options:

a$)$

the debtor.

b$)$

all of the choices.

c$)$

the creditor.

d$)$

a disinterested third$-$party witness.

Question $29(0\mathrm{.}5$ points$)$

Providing only a debtor's trade name in a financing statement is sufficient for perfection even if the trade name is not the legal name of the business.

Question $29$ options:

Tr