ACP ACP Bankruptcy Law & Procedures

Question 1

Which Chapter of the Bankruptcy Code provides for reorganization of a business?

Accepted Answer

Chapter 11

Answer

Chapter 11 of the Bankruptcy Code allows businesses to reorganize their debts while continuing operations.

Question 2

What is the 'automatic stay' in bankruptcy?

Accepted Answer

A pause in all collection actions against the debtor

Answer

The automatic stay under 11 U.S.C. § 362 immediately halts most collection actions, lawsuits, and foreclosures against the debtor upon filing.

Question 3

Which official form is used to file a voluntary bankruptcy petition for an individual?

Accepted Answer

Form B-101

Answer

Official Form B-101 (Voluntary Petition for Individuals) is the form an individual debtor uses to initiate a bankruptcy case.

Question 4

What is a 'proof of claim' in bankruptcy?

Accepted Answer

A document filed by a creditor asserting the amount owed

Answer

A proof of claim is a written statement filed by a creditor stating the amount and basis of the debt owed by the debtor.

Question 5

What is the means test in Chapter 7 bankruptcy?

Accepted Answer

A calculation to determine if a debtor qualifies for Chapter 7 relief

Answer

The means test compares the debtor's income to the state median income to determine eligibility for Chapter 7 liquidation bankruptcy.

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