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LET’S PRACTICE
Name: _____________________________________________________________________________
5. All businesses can file:
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a. Chapter 11 Bankruptcy b. Chapter 13 bankruptcy
c. Chapter 9 Bankruptcy
d. Chapter 7 and Chapter 11 bankruptcy
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6. You own a business that supplies boxes for shipping companies. One of your clients, Holy Ship! Shipping Corporation, just filed for Chapter 11. Last year you signed a contract with Holy Ship! Shipping Corporation, ensuring that your box company would supply boxes to them for the next five years. As a creditor, what must you file with the Bankruptcy Trustee? a. Proof of Claim c. You don’t need to file anything b. Notice of Contract Termination d. W-4 PRODUCT PREVIEW 7. Regarding Holy Ship! Shipping Corporation above, what can the debtor elect to do with your contract if it believes the contract impedes its return to profitability? Explain. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 8. Each of the following types of debt are dischargeable in bankruptcy except: a. unpaid rent c. personal loans b. medical bills d. student loans 9. The Homestead Exemption allows: a. Chapter 7 debtors to keep an ownership share of their home b. reduced taxes on earnings from new agricultural developments c. bankrupt businesses to prevent the sale of assets kept in personal homes d. automatic termination of home mortgages upon filing bankruptcy 10. What is a Debt Management Plan? How does it work? Provide an example. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________
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Chapter 18 | Resolving Insolvency 366
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