CBS Bankruptcy Laws & Regulations 2

Question 1

Under 11 U.S.C. § 523(a)(8), student loan debt is generally non-dischargeable unless the debtor proves:

Accepted Answer

Repayment would impose an undue hardship

Answer

Section 523(a)(8) excepts student loans from discharge unless excepting the debt from discharge would impose an undue hardship on the debtor and dependents.

Question 2

The 'median income' test under BAPCPA primarily determines:

Accepted Answer

Whether a Chapter 7 debtor must complete the means test calculation

Answer

If a debtor's current monthly income exceeds the state median income, they must complete the full means test calculation under § 707(b)(2) to file Chapter 7.

Question 3

Which section of the Bankruptcy Code governs the rights and duties of a Chapter 7 trustee?

Accepted Answer

11 U.S.C. § 704

Answer

Section 704 sets out the duties of a Chapter 7 trustee, including collecting and reducing to money the property of the estate.

Question 4

A Chapter 13 plan must provide that unsecured creditors receive at least as much as they would in a Chapter 7 liquidation. This is known as the:

Accepted Answer

Best interests of creditors test

Answer

The 'best interests of creditors' test under § 1325(a)(4) requires Chapter 13 plans to pay unsecured creditors at least their Chapter 7 liquidation value.

Question 5

Under the Bankruptcy Code, a 'single asset real estate' case is subject to special rules including:

Accepted Answer

Shortened automatic stay protection unless specific conditions are met

Answer

Section 362(d)(3) allows relief from the automatic stay in single asset real estate cases unless the debtor files a plan or begins paying interest within 90 days.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Bankruptcy Laws & Regulations 2