Bankruptcy Law Cases Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

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?

Normal bills like phone, electric, and cable. Signup and view all the answers

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

Debts arising from intentional torts Signup and view all the answers

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

It was malicious Signup and view all the answers

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

Outrageous conduct Signup and view all the answers

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

Violation of trade secrets act Signup and view all the answers

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

Intentional torts Signup and view all the answers

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

Intentional injury Signup and view all the answers

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

Intent Signup and view all the answers

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

Negligent debt Signup and view all the answers

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

Debt based on breach of contract Signup and view all the answers

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

If it is not in writing Signup and view all the answers

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

Preponderance-of-the-evidence standard Signup and view all the answers

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

Fraudulent transfers with actual intent to defraud Signup and view all the answers

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

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

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

Triple damages Signup and view all the answers

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

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

What does writing a Not Sufficient Funds Check violate?

§ 523(a)(6) Signup and view all the answers

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

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

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

Actual intent to defraud Signup and view all the answers

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

They are considered fraudulent transfers Signup and view all the answers

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

Debt arising from a material breach 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).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

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.