Bankruptcy Law Cases Quiz
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Questions and Answers

In a no-asset, no-claims-bar-date bankruptcy case, why would a debtor move to reopen the case to add omitted 'garden variety debts'?

  • To expedite the closure of the bankruptcy case.
  • To prevent the creditors from pursuing the debts in state court.
  • To seek a discharge from the debts owed to those creditors.
  • To amend the schedules and remove the debts from the discharge. (correct)
  • Under what circumstances can creditors request a declaratory judgment action regarding the dischargeability of their debts?

  • If the debts fall under Section 523(a)(2), (4) or (6) for fraud, embezzlement, or tort. (correct)
  • If the debts were omitted from the schedules by mistake.
  • If the debtor has moved to reopen the bankruptcy case.
  • If the claims bar date has passed.
  • What is the significance of the claims bar date in a bankruptcy case?

  • It determines the priority of debts to be discharged.
  • It marks the deadline for creditors to file proof of claims. (correct)
  • It signifies the date of the debtor's bankruptcy discharge.
  • It indicates the date when the debtor can reopen the case.
  • What type of debts are considered 'garden variety debts' in a bankruptcy case?

    <p>Normal bills like phone, electric, and cable.</p> Signup and view all the answers

    Which type of debt is not dischargeable under 523(a)(6)?

    <p>Debts arising from intentional torts</p> Signup and view all the answers

    In the case of In Re Mikulsky, what did the bankruptcy court conclude about the debtor's conduct?

    <p>It was malicious</p> Signup and view all the answers

    What type of conduct did the Wisconsin courts use interchangeably with 'malicious conduct'?

    <p>Outrageous conduct</p> Signup and view all the answers

    What was the basis of the judgment in the case of In Re Mikulsky?

    <p>Violation of trade secrets act</p> Signup and view all the answers

    What does 523(a)(6) require for a debt to be nondischargeable?

    <p>Intentional torts</p> Signup and view all the answers

    What type of injury does 523(a)(6) cover for the debt to be nondischargeable?

    <p>Intentional injury</p> Signup and view all the answers

    What is the key element necessary for a finding under 523(a)(6)?

    <p>Intent</p> Signup and view all the answers

    What type of debt does 523(a)(6) not cover for dischargeability?

    <p>Negligent debt</p> Signup and view all the answers

    Which type of debt is not excepted from discharge under § 523(a)(6)?

    <p>Debt based on breach of contract</p> Signup and view all the answers

    Under what circumstances would reliance on a statement regarding financial fraud be non-dischargeable?

    <p>If it is not in writing</p> Signup and view all the answers

    What is the standard of proof for dischargeability exceptions under 523(a)?

    <p>Preponderance-of-the-evidence standard</p> Signup and view all the answers

    Which type of transfer is necessarily nondischargeable in bankruptcy under § 523(a)(2)(a)?

    <p>Fraudulent transfers with actual intent to defraud</p> Signup and view all the answers

    What is the key consideration for the dischargeability of student loans in bankruptcy?

    <p>The debtor's ability to maintain a certain standard of living</p> Signup and view all the answers

    What type of damages for actual fraud are not dischargeable under § 523(a)(2)(a)?

    <p>Triple damages</p> Signup and view all the answers

    What does the absence of a deadline for filing a proof of claim make impossible?

    <p>It makes it impossible to file a timely proof of claim</p> Signup and view all the answers

    What does writing a Not Sufficient Funds Check violate?

    <p>§ 523(a)(6)</p> Signup and view all the answers

    What does the Bruner Test assess for student loans in bankruptcy?

    <p>The debtor's ability to sustain a standard of living and certainty of hopelessness</p> Signup and view all the answers

    What does a transfer for less than fair value not necessarily indicate under § 523(a)(2)(a)?

    <p>Actual intent to defraud</p> Signup and view all the answers

    What is the basis for the non-dischargeability of settlement payments in bankruptcy?

    <p>They are considered fraudulent transfers</p> Signup and view all the answers

    What type of debt based on breach of contract is not excepted from discharge under § 523(a)(6)?

    <p>Debt arising from a material breach</p> Signup and view all the answers

    Study Notes

    Bankruptcy Law Cases Summary

    • A Chapter 7 discharge applies to all unscheduled debts except those made nondischargeable by § 523.
    • In Re Pickens: A debt based on breach of contract is not excepted from discharge under § 523(a)(6).
    • Lamar v. Appling: Any reliance on a statement regarding financial fraud must be in writing for it to be non-dischargeable.
    • McClellan v. Cantrell: Only fraudulent transfers with actual intent to defraud are nondischargeable in bankruptcy under § 523(a)(2)(a).
    • Archer v. Warner: Settlement payments are non-dischargeable in bankruptcy, even if the debtor files for bankruptcy.
    • Tetzlaff v. Educational Credit: Student loans can only be discharged under "undue hardship" if the debtor meets specific criteria.
    • Bruner Test for Student Loans in bankruptcy: It assesses the debtor's ability to sustain a standard of living and certainty of hopelessness.
    • Grogan v. Gardner: The standard of proof for dischargeability exceptions under 523(a) is the preponderance-of-the-evidence standard.
    • Cohen v. De La Cruz: Treble damages for actual fraud are not dischargeable under § 523(a)(2)(a).
    • The absence of a deadline for filing a proof of claim makes it impossible to file a proof of claim that is not timely.
    • Writing a Not Sufficient Funds Check is not a violation of § 523(a)(6).
    • Transfer for less than fair value does not necessarily indicate actual intent to defraud under § 523(a)(2)(a).

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    Description

    Test your knowledge of bankruptcy law cases with this summary quiz. Explore key rulings on dischargeable debts, non-dischargeable debts, fraudulent transfers, student loans, and the standards of proof for dischargeability exceptions.

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