Chapter 7 Bankruptcy Preliminary Concerns

SELF-ASSESSMENT QUESTIONS

To receive 1 hour of MCLE Credit, answer the test questions below, then hit Submit. Correct answers and a CLE certificate will be sent to you via email.

Test for Chapter 7 Bankruptcy Preliminary Concerns
1. At the time of filing a Chapter 7, Joey owns a car worth $15,000, on which he still owes a secured creditor $10,000. When the chapter 7 is over and done, Joey will own the car free and clear, and the lien will be discharged. *
2. A Chapter 7 discharge eliminates a debtor’s personal liability for discharged debts. *
3. Taxes can never be discharged in bankruptcy. *
4. A debtor’s 2009 income tax could be dischargeable as early as January 1, 2012. *
5. At the time of filing a chapter 7, Sally owes her ex-husband Pat $10,000 in past-due alimony, and $20,000 due to a property settlement. The alimony cannot be discharged, but the debt from the property settlement can be discharged. *
6. If Joe files a Chapter 7, and owes parking tickets that are more than 2 years old at the time of filing, those parking tickets will be discharged. *
7. Student loans can be discharged if excepting such debts from discharge would impose an undue hardship on the debtor and the debtor’s dependents. *
8. If a creditor files a claim stating that Joe’s debt was incurred through fraud, then that debt will not be discharged in Joe’s Chapter 7. *
9. If debtor’s prior Chapter 7 bankruptcy, filed on January 10, 2004, resulted in a discharge entered on May 10, 2004, debtor cannot receive another Chapter 7 discharge unless he waits to file a new Chapter 7 petition until May 11, 2012. *
10. If debtor’s prior Chapter 13 bankruptcy, filed on January 10, 2009, resulted in a discharge entered on May 10, 2012, debtor cannot receive a Chapter 7 discharge unless he waits to file a Chapter 7 petition until May 11, 2015. *
11. If debtor gives $100,000 to his Aunt Agatha on June 15, 2012, in order to avoid paying that money to a judgment creditor, debtor is likely to get a Chapter 7 discharge if he waits until December 15, 2012 to file. *
12. If debtor destroys all the financial records of his failed gardening business on January 15, 2012, he can safely assume he can obtain a Chapter 7 discharge if he waits until January 17, 2013 to file. *
13. A debtor can be denied a discharge for making a false statement in connection with a bankruptcy proceeding. *
14. A debtor whose income is 150% of the applicable state median income whose debts are primarily from a failed business is not eligible to file a Chapter 7 bankruptcy. *
15. A debtor whose family income is above the state median will never be allowed to file a Chapter 7 bankruptcy. *
16. A repayment to a creditor made 89 days prior to the bankruptcy filing may be a preferential transfer which can be recovered by the trustee. *
17. A repayment to a creditor made 91 days prior to the bankruptcy filing cannot be considered a preferential transfer. *
18. If Bob repays a $10,000 loan to his mother-in-law on January 15, 2012, you should advise him to wait at least until December 15, 2012 prior to filing a Chapter 7. *
19. If a debtor makes a transfer of property with actual intent to defraud a creditor within two years prior to filing the bankruptcy, the trustee can avoid the transfer. *
20. If Sally’s gross income for 2012 was $100,000, and she donated $15,000 to Utopia State University (a qualified charitable organization) during that year, and if she files for Chapter 7 in 2013, the trustee can recover the donation from the University. *
21. If Sally’s gross income for 2012 was $100,000, and she has donated $25,000 to Utopia State University (a qualified charitable organization) during that year, (but she has also routinely donated 25% of her gross income during the last 10 years) and if she files for Chapter 7 in 2013, the trustee can recover the donation from the University. *

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303 N. Glenoaks Blvd, Suite 200
Burbank, CA 91502
Tel. 213-509-1515
Tel. 800-455-1592
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Email: dcrowder@crowderlaw.com

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