Bankruptcy Paper 2

1

The creditors of a firm have filed an involuntary petition seeking a Chapter 7 liquidation of the firm under federal bankruptcy law. The firm contests the petition. What is a basis for the court denying the petition?






2

The correct priority of claims in a bankruptcy liquidation is






3

A discharge in bankruptcy under Chapter 7 (liquidation) may be obtained by a(n)
Individual
Corporation
Partnership






4

Chapter 11 of the bankruptcy law concerns reorganizations. Under Chapter 11,






5

Which of the following is a true statement about a plan of reorganization in a Chapter 11 bankruptcy case?






6

The trusteeship function in a Chapter 11 bankruptcy reorganization is usually performed by the






7

A firm is being liquidated several months after its Chapter 7 bankruptcy filing. The receiver has compiled the following information. Assets $100,000 Common shares (at par) 22,000 Preferred shares (at par) 5,000 Secured bonds 50,000 Senior unsecured debt 27,000 Junior unsecured debt 18,000 Wage payable 7,000 Taxes owed 3,000 Credit from suppliers since filing 2,000 Court/trustee costs 1,500 Based on this information, what percentage of their claims will junior creditors receive?






8

A company in financial distress is often faced with filing for either liquidation or reorganization. While each type of filing offers unsecured creditors some benefits, junior creditors are more likely to favor






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