Bankruptcy, Divorce, And Tax Fraud

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Question 1
Free
Multiple Choice

All bankruptcy petitions are subject to

Choose correct answer/s
A

Federal claims court jurisdiction

B

U.S. Tax court jurisdiction

C

Supreme court jurisdiction

D

U.S. district court jurisdiction

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Question 2
Free
Multiple Choice

Which of the following describes the result of a Chapter 7 filing?

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A

"a complete liquidation or shutting down of the business"

B

"courts give debtor time to reorganize"

C

"2 years probation and/or up to 300 hours community service"

D

"Debtors make regular payments for a number of years:"

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Question 3
Free
Multiple Choice

When a bankrupt company only listed address and phone number as a post office box and an answering service, we may see this as a flag of what type of fraud?

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A

Illegal concealment of assets

B

Planned bankruptcy fraud

C

Fraudulent transfers

D

None of the above

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Question 4
Free
Multiple Choice

The Office of U.S. Trustee is an agency in which of the following departments?

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A

Homeland Defense

B

Department of Justice

C

Department of the Treasury

D

Department of Agriculture

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Question 5
Free
Multiple Choice

The Office of U.S. Trustee is responsible for all but which of the following functions?

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A

Administering bankruptcy cases

B

Officiating in court on matters of interest to the debtor's estate and creditors

C

Overseeing and monitoring trustees

D

Reviewing employees and fee applications

E

The Office of U.S. Trustee is responsible for all of the above functions

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Question 6
Multiple Choice

Section 548 of the Bankruptcy Code defines as fraudulent certain transfers made, or obligations incurred, within ______ month(s) before the bankruptcy petition's filing date?

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A
12
B
9
C
6
D
3
E
1
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Question 7
Multiple Choice

Most divorce fraud cases are:

Choose correct answer/s
A
Civil cases.
B
Criminal cases.
C
Protected by Chapter 7.
D
Rarely investigated through surveillance.
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Question 8
Multiple Choice

When fraud examiners investigate a bankruptcy or divorce resulting from fraud where do they focus?

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A
Activity shortly before the bankruptcy filing or divorce
B
Activity after the bankruptcy filing or divorce
C
Activity several years prior to the bankruptcy filing or divorce
D
Activity throughout the individual's entire life
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Question 9
Multiple Choice

Fraud is common in:

Choose correct answer/s
A
Divorces
B
Bankruptcies
C
Both A and B
D
Neither A nor B
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Question 10
Multiple Choice

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

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A
File a bankruptcy petition
B
File a document in a bankruptcy proceeding
C
Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding
D
All of the above
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Question 11
Multiple Choice

As a participant in divorce cases, an adjustor can be best described as a person who

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A
Investigates allegations of fraud or misconduct by the debtor or its principals
B
Is the subject of a chapter 11 filing
C
Is the one who holds a valid claim against a debtor
D
Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales
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Question 12
Multiple Choice

Who holds a valid claim against someone filing a chapter 11 bankruptcy?

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A
Examiner
B
Debtor
C
Creditor
D
Adjuster
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Question 13
True/False

True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.

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True
False
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Question 14
Multiple Choice

"Bust-out" refers to:

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A
A planned bankruptcy
B
Jailbreak planned by fraud perpetrators
C
Skipping out on bail
D
Fraud prevention program for convicted fraudsters
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Question 15
Multiple Choice

Court appointed trustees are individuals or firms, who:

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A
Identify and collect a debtor's assets and then allocate those assets to creditors in an orderly manner.
B
Review fee applications, motions to appoint trustees and examiners, motions to convert or dismiss a case, and other pleadings
C
Investigate criminal complaint in bankruptcy cases
D
Makes a false oath or account in a bankruptcy case
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Question 16
Multiple Choice

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

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A
Chapter 3
B
Chapter 5
C
Chapter 7
D
Chapter 11
E
Chapter 13
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Question 17
Multiple Choice

One type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less. This type of bankruptcy is defined in _____ of the Bankruptcy Code.

Choose correct answer/s
A
Chapter 3
B
Chapter 5
C
Chapter 7
D
Chapter 11
E
Chapter 13
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Question 18
Multiple Choice

In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:

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A
Fraud has caused the bankruptcy or divorce
B
The bankruptcy or divorce is used to perpetrate the fraud
C
The bankruptcy or divorce is used to conceal the fraud
D
None of the above
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Question 19
Multiple Choice

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

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A
Fraudsters don't have accurate records
B
Assets are taken away from one party and given to others
C
To see if private investigators can find the hidden asset
D
None of the above
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Question 20
Multiple Choice

Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 Bankruptcy on January 1, 2008. Which of the following would be considered a fraudulent transfer?

Choose correct answer/s
A
Transfer of land to Jim's sister Alice on July 1, 2006 with the intent to place the land beyond the reach of creditors.
B
Sale of inventory at regular price to a new customer on February 15, 2008.
C
Transfer of fixed assets to Jim's brother John on December 15, 2007 with the intent to place the fixed assets beyond the reach of creditors.
D
Transfer of inventory to a subsidiary for less than fair value on August 1, 2006.
E
Two of the above
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