Essay on Cross 9e TBB Ch16

2720 Words Jun 16th, 2015 11 Pages
Chapter 16

Creditor-Debtor Relations and Bankruptcy

N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.

N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.

true/false questions

1. With a mechanic’s lien, real estate becomes security for a debt.

answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

2. A writ of execution applies to a debtor’s nonexempt real or personal property wherever located.

answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

3. Only a few types of property—a debtor’s wages or bank account, for example—can be
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In putting together a repayment plan under Chapter 13, a debtor must apply the means test to identify the amount of disposable income that will be available to repay creditors.

answer: T PAGES: Section 8 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

multiple choice questions

1. Portia owes Bon $500 on their roof repair contract, but refuses to pay. To collect, Bon files a me­chanic’s lien. Under a mechanic’s lien, security for the debt is repre­sented by

a. Portia’s personal property.
b. Portia’s real estate.
c. the $500 owed under the contract.
d. the contract.

ANSWER: B PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal

2. Refer to Fact Pattern 29-1B. If Michael imposes a lien on Jill’s car, it will end

a. in thirty days.
b. in sixty days.
c. when Michael voluntarily surrenders possession of the car.
d. when Jill obtains a court order requiring Michael to return the car.

ANSWER: C PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal

3. A court awards a judgment to Loan Collection Agency, who is the creditor, against Margret, who is the debtor. After the judgment, the creditor requests a court order to seize Margret’s property to ensure that the judgment will be collectible. This is

a. a judicial lien.
b. a writ of attachment.
c. a writ of execution.
d. a violation of most state laws.

ANSWER: C PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal

4. Ronaldo’s debt to Sofia is past due. Ronaldo

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