PCS Bankruptcy Stay & Proof of Claim 5

Question 1

After a Chapter 7 discharge is granted, a collection agency sends a collection letter demanding payment on the discharged debt. The debtor can seek:

Accepted Answer

Contempt sanctions from the bankruptcy court for discharge injunction violation

Answer

Violating the discharge injunction is punishable as contempt of court, and the debtor can return to the bankruptcy court to seek sanctions.

Question 2

In bankruptcy, a 'bar date' refers to:

Accepted Answer

The deadline by which creditors must file proofs of claim

Answer

The bar date is the court-established deadline for creditors to file proofs of claim; claims filed after this date may be disallowed.

Question 3

A collection agency continues to report a discharged debt to credit bureaus as 'currently owed.' This may constitute:

Accepted Answer

A violation of the discharge injunction under the Bankruptcy Code

Answer

Reporting a discharged debt as currently owed is widely held to be an attempt to collect the debt and violates the discharge injunction.

Question 4

Which party bears the burden of proving that a creditor's proof of claim should be disallowed?

Accepted Answer

The objecting party bears the burden of going forward with evidence

Answer

Under § 502 and applicable case law, a filed proof of claim is presumed valid; the objecting party must produce sufficient evidence to rebut its prima facie validity.

Question 5

A Chapter 13 debtor's plan proposes to pay general unsecured creditors 30 cents on the dollar. A creditor objects, claiming it should receive 100%. What standard must the plan meet?

Accepted Answer

The best-interest-of-creditors test (creditors must receive at least what they'd get in Chapter 7)

Answer

Under the best-interest-of-creditors test, a Chapter 13 plan must pay unsecured creditors at least as much as they would receive in a hypothetical Chapter 7 liquidation.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Bankruptcy Stay & Proof of Claim 5