ACP ACP Bankruptcy Law & Procedures 2

Question 1

What is the '341 meeting' in bankruptcy?

Accepted Answer

A meeting of creditors where the debtor is examined under oath

Answer

The 341 meeting, named after 11 U.S.C. § 341, is a mandatory meeting where the trustee and creditors may question the debtor under oath about finances.

Question 2

Which chapter of the Bankruptcy Code is available only to family farmers and fishermen?

Accepted Answer

Chapter 12

Answer

Chapter 12 of the Bankruptcy Code is specifically designed for family farmers and fishermen to reorganize their debts.

Question 3

What does 'exempt property' mean in bankruptcy?

Accepted Answer

Property the debtor can keep that is protected from creditors

Answer

Exempt property is property protected by state or federal law that the debtor is allowed to retain even in a Chapter 7 liquidation.

Question 4

What is a 'preference payment' in bankruptcy?

Accepted Answer

A transfer to a creditor within 90 days before filing that the trustee can recover

Answer

A preference is a payment made to a creditor within 90 days (or one year for insiders) before bankruptcy that the trustee may recover to redistribute fairly among all creditors.

Question 5

What is the homestead exemption in bankruptcy?

Accepted Answer

A protection that allows debtors to exempt equity in their primary residence

Answer

The homestead exemption protects a specified amount of equity in the debtor's primary residence from being liquidated by the bankruptcy trustee.

(ACP) Advanced Certified Paralegal Practice Test

(ACP) Advanced Certified Paralegal Practice Test

ACP ACP Bankruptcy Law & Procedures 2