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Flag question: Question 41 Question 410

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Flag question: Question 41 Question 410.4 pts In 2005, Congress amended the Bankruptcy code to provide for the dismissal of Chapter 7 cases - or with the debtor’s consent their conversion to Chapter 13 cases – on a finding of abuse by an individual debtor with primarily consumer debts. The abuse can be established in two ways: 1) Through an unrebutted finding of abuse based on the “means test” that is included in the Code; or 2) On general grounds of abuse including bad faith, determined under the totality of the circumstances. The “means test” is designed to determine the debtor’s ability to repay general unsecured claims. It has three elements, which answer below properly describes these three elements? Group of answer choices (1) a definition of “current daily income”— which is the subtotal income a debtor owes to unsecured creditors; (2) a list of disallowed deductions from the past monthly income for the purpose of supporting the debtor and his employees, family and for repayment of unsecured debt and low priority debts; and (3) defined “trigger points” at which the income remaining before the disallowed deductions would trigger a presumption of felony abuse. (1) a definition of “current monthly income”— which is the total income a debtor is presumed to have available; (2) a list of allowed deductions from the current monthly income for the purpose of supporting the debtor and his family and for repayment of higher priority debts; and (3) defined “trigger points” at which the income remaining after the allowed deductions would trigger the presumption of abuse. (1) a definition of “current daily income”— which is the total income a debtor is presumed to have after finding full employment; (2) a list of allowed deductions from future annual income for the purpose of supporting the debtor and his family and for repayment of higher priority unsecured debts; and (3) defined “trigger points” at which the income remaining after the unsecured credit card debt is paid off, would trigger the suspicion of criminal fraud. None of the above. Flag question: Question 42 Question 420.4 pts In the bankruptcy case of In re Siegenberg, the court determined that the debtor, Nicole Siegenberg, filed her Chapter 7 bankruptcy petition unlawfully because she invoked the automatic stay for improper purposes such as to delay or defeat state court litigation, and that she misrepresented her financial condition in the statement that she filed with the court. T or F Group of answer choices True False Flag question: Question 43 Question 430.4 pts The court in In re Siegenberg analyzed Siegenberg’s arguments under which test? Group of answer choices The court used the In re Price case, a nine-part test, to address the issue of “bad faith” and it relied on the In re Mitchell six-part test to address the “totality of the circumstances.” The court used the nine-part Brunner test, a Chapter 11 and 12 case, to address the issue of “bad faith” and it relied on the In re Shirel test to analyze the “totality of the circumstances.” The court used the nine-part In re Mitchell test, a Chapter 7 case, to address the issue of “bad faith” and the court relied on the six-part In re Price test to determine the “totality of the circumstances” on the issue of abuse. The court used the In re Lance test, a Chapter 12 case, to address the issue of “bad faith”. Flag question: Question 44 Question 440.4 pts Joe writes a check payable to Advanced Autos. The check is drawn on his checking account with the Progressive Bank. The drawee on this check is: Group of answer choices Joe. Progressive Bank the Federal Reserve Advanced Autos. Flag question: Question 45 Question 450.4 pts Which of the following is a negotiable instrument? Group of answer choices “I owe you $100.” “Pay to the order of Janet Clark the amount of $500.” “I promise to pay you the sum of $300 when I sell my car to Ted.” “I promise to repay the loan of $3,000 only if I succeed in my business.” Flag question: Question 46 Question 460.4 pts Which of the following is true if an instrument is undated? Group of answer choices Its date is the date it is issued by the maker or the drawer. Its date is the date it is received by the payee. The instrument is nonnegotiable if it is undated. Its date is the date it is signed by the maker or the drawer. Flag question: Question 47 Question 470.4 pts The _____ has adopted a regulation that alters the rights of a holder in due course in consumer purchase transactions. Group of answer choices Consumer Product Safety Commission Federal Trade Commission Securities and Exchange Commission Bureau of Consumer Financial Protection Flag question: Question 48 Question 480.4 pts Ahmed Cohan received a check for $5,000 for a used car he sold. The check was marked “pay to the order of Ahmed Cohen.” On back of this check he wrote, in his handwriting, “Ahmed Cohen.” This has the legal effect of: Group of answer choices making this instrument bearer paper. making this instrument order paper. making this instrument void. making this instrument non-negotiable. Flag question: Question 49 Question 490.4 pts In “Lehigh Presbytery v. Merchants Bancorp, Inc.” the court: Group of answer choices found in favor of Lehigh Presbytery because Hunsberger was a thief. found in favor of the bank because it acted with reasonable care. found in favor of Lehigh Presbytery because the bank is required to follow the restrictive indorsement. found in favor of the bank because it acted with due diligence. Flag question: Question 50 Question 500.4 pts A check in the amount of $28 is drawn “Pay to the Order of John Riddle” and indorsed “John Riddle” by John Riddle. John gives the check to Janelle Carbon to pay for Girl Scout cookies. Group of answer choices Janelle must ask John to add her name on the back and then John must sign it again before the Janelle can negotiate it. Janelle is not a holder because she took a check that doesn’t have her name on it. Only John Riddle can present the check for payment to a bank. If Janelle gives the check to her sister, Olive Carbon, Olive Carbon can negotiate the check because it is bearer paper and she is in possession.