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The Ultimate Bankruptcy Quiz
by Staff
Nobody likes to think about bankruptcy, foreclosures and other financial woes, but sometimes unforeseen circumstances happen. Take our bankruptcy quiz and get smart about your bankruptcy options.

Bankruptcy law incorporates elements of_____law.

  • corporate law
  • tax law
  • both of the above

Business bankruptcies constitute a very small percentage of total bankruptcies in the United States each year. Businesses made up _____percent of bankruptcy filings in the United States in 2004.

  • two
  • 20
  • 30

When a company has more debt than it can pay, its best option is:

  • applying for a business loan
  • filing for bankruptcy
  • applying for tax exemptions

Which of the following circumstances might cause a company to file for bankruptcy?

  • a sudden loss of revenue
  • a sudden large financial loss
  • both of the above

The top United States bankruptcy was filed by______ in 2002.

  • WorldCom
  • World Net
  • WorldTravel

The party who has debt or owes the money in a bankruptcy proceeding is the:

  • creditor
  • debtor
  • predator

With secured debts, creditors have the legal right to something of yours if you fail to make the proper payments. Your_____ is an example of a secured debt.

  • car loan
  • mortgage
  • both of the above

How many different types of bankruptcy are there ?

  • four
  • 20
  • 50

Chapter 12 bankruptcy is specifically for _____owners.

  • factory
  • farm
  • retail store

Which type of bankruptcy allows corporate debtors to continue to function as a business?

  • Chapter 7
  • Chapter 11
  • Chapter 12

In addition to federal bankruptcy laws, there are also_____bankruptcy laws.

  • county
  • local
  • state

A company that has filed for Chapter 11 bankruptcy must disclose all of its assets and debts. This is called the:

  • creditors' right to question the bank
  • creditors' right to question the lawyer
  • creditors' right to question the debtor

In the case of fraud or mismanagement on the part of a debtor, the court may appoint a _____ to manage a company's operations.

  • trustee
  • guardian
  • friend

Which operations may a company continue after filing for Chapter 11 bankruptcy?

  • It can sell a major division.
  • It can buy another company.
  • It can make regular purchases and sales.

If you have no money to pay off your debts to your creditors, you may be considered:

  • judgment proof
  • poor
  • broke

A good alternative to filing for personal bankruptcy is:

  • working out a debt management plan
  • running away
  • hiding in your house

In order to qualify for Chapter 7 bankruptcy, your current monthly income must be:

  • less than the median income for a family of the same size in your state
  • greater than the median income for a family of the same size in your state
  • the same as the median income for a family of the same size in your state

What happened to debtors many years ago before the passing of bankruptcy laws?

  • They were sent to prison.
  • They were sent to penal colonies.
  • both of the above

Which modern bankruptcy law established the chapters of bankruptcy that we have today?

  • the Bankruptcy Reform Act of 1898
  • the Bankruptcy Reform Act of 1908
  • the Bankruptcy Reform Act of 1978

The Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005 seeks to give further protection to:

  • creditors
  • trustees
  • courts