Bankruptcy Code Exceptions Quiz
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Questions and Answers

Which type of activity is not affected by an automatic stay in bankruptcy?

  • Civil lawsuits
  • Debt collection by creditors
  • Eviction actions
  • Criminal activity (correct)
  • What type of order cannot be stayed by filing for bankruptcy?

  • Creditor's demand for payment
  • Employer's termination order
  • Court order for debt repayment
  • City order to do something (correct)
  • In which situation would a person have to continue to pay child support even after filing for Chapter 7 bankruptcy?

  • If the person is unemployed
  • If the person has other outstanding debts
  • If the payments are dischargeable (correct)
  • If the person is behind on support payments
  • What must a person ensure before being discharged of debts via Chapter 13 bankruptcy?

    <p>Payment of all domestic support obligations</p> Signup and view all the answers

    What was the reason for the husband's motion to reduce maintenance payments?

    <p>He lost his job</p> Signup and view all the answers

    In Taggart v. Lorenzen, what would establish a basis for the discharge injunction and an appropriate defense for the creditor?

    <p>A reasonable basis for the creditor’s conduct</p> Signup and view all the answers

    What did the Supreme Court hold in City of Chicago v. Fulton regarding the prohibition by retaining possession of a debtor’s property after a bankruptcy petition is filed?

    <p>Mere passive retention of estate property does not violate §362(a)(3)</p> Signup and view all the answers

    In the case of Taggart v. Lorenzen, what did the court define as civil contempt?

    <p>Willful disobedience of any judgment by civil court</p> Signup and view all the answers

    What was the reason for the City of Chicago impounding Fulton’s car?

    <p>Failure to pay fines and driving with a suspended license</p> Signup and view all the answers

    What did the Supreme Court require the debtor to provide to the creditor in City of Chicago v. Fulton?

    <p>Adequate protection of its interest in the returned property</p> Signup and view all the answers

    What was the outcome of the City of Chicago v. Fulton case?

    <p>The City did not violate the prohibition by retaining possession of the debtor’s property</p> Signup and view all the answers

    What type of lawsuit did Sherwood Park Business Center and its owners bring against Taggart?

    <p>Claiming that Taggart had breached the Business Center’s operating agreement</p> Signup and view all the answers

    Before the trial, what did Taggart file for?

    <p>Chapter 7 bankruptcy</p> Signup and view all the answers

    What was the reason for the motion filed by the Sherwood in Taggart v. Lorenzen?

    <p>Seeking attorney’s fee reimbursement for the prebankruptcy action against Taggart</p> Signup and view all the answers

    What was the outcome of the motion filed by the Sherwood in Taggart v. Lorenzen?

    <p>The state court entered a judgment against Taggart</p> Signup and view all the answers

    What was the result of Taggart’s bankruptcy petition?

    <p>He was awarded a discharge</p> Signup and view all the answers

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