A typical Chapter 11 case does not include a trustee as does a Chapter 7.
Indicate whether the statement is true or false
Q. 2The debtor in possession is typically an officer or director of the business and has all the powers of the trustee.
Indicate whether the statement is true or false
Q. 3Penny runs a stop sign and smashes into Wendy's car. Wendy is injured and her car is damaged. At the time of the accident, Wendy was speeding and talking on her cell phone, driving carelessly. Wendy's damages (for personal injury and property damage) are 10,000 . Wendy sues Penny for negligence. In a contributory negligence jurisdiction, how much can Wendy recover?
a. 10,000 because that is the amount of her damages.
b. 100,000 because she should be entitled to punitive damages.
c. 5,000 because that is the amount of half her damages.
d. 0 because she is barred from recovery.
Q. 4The purpose behind a Chapter 11 bankruptcy is to allow the debtor to stay in business by reaching a compromise with its creditors for the repayment of debts that will accommodate their unique relationship and circumstances.
Indicate whether the statement is true or false
Q. 5After the bankruptcy court approves the debtor's reorganization plan, the next step in the process is ________ of the plan.
A) Rehashing
B) Convening
C) Confirmation
D) Dissension
Q. 6After the ________ period has lapsed, creditors are free to file their own reorganization plans.
A) Exclusivity
B) Mandatory cooling off
C) Mediation
D) Inclusivity
Q. 7The process known as ________ stripping, is available to Chapter 13 filers and not Chapter 7 filers.
A) Mortgage
B) Lien holder
C) Loss payee
D) Lien
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