PCS Bankruptcy Stay & Proof of Claim 2

Question 1

Which type of bankruptcy filing triggers an automatic stay that does NOT discharge debts at the end of the case?

Accepted Answer

Chapter 12

Answer

Chapter 12 (family farmer/fisherman) triggers an automatic stay but ultimately leads to a repayment plan, not a discharge in the same manner as Chapter 7.

Question 2

A creditor receives notice of a debtor's Chapter 7 bankruptcy but continues to call the debtor demanding payment. This action violates:

Accepted Answer

The automatic stay under 11 U.S.C. § 362

Answer

Continuing collection calls after receiving bankruptcy notice violates the automatic stay under 11 U.S.C. § 362, regardless of other laws that may also apply.

Question 3

On a proof of claim, what does 'priority unsecured claim' mean?

Accepted Answer

An unsecured debt entitled to payment before general unsecured claims

Answer

A priority unsecured claim (e.g., certain taxes, wages) is entitled to payment ahead of general unsecured creditors in the distribution waterfall.

Question 4

A collection agency that is listed as a creditor in a Chapter 13 case does NOT file a proof of claim. What typically happens to that claim?

Accepted Answer

It may be disallowed or receive no distribution

Answer

A creditor who fails to file a timely proof of claim in Chapter 13 may be disallowed and receive no distribution under the plan.

Question 5

Which court has exclusive jurisdiction over automatic stay disputes in a bankruptcy case?

Accepted Answer

The bankruptcy court presiding over the case

Answer

The bankruptcy court presiding over the case has exclusive jurisdiction to enforce, modify, or lift the automatic stay.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Bankruptcy Stay & Proof of Claim 2