Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come
to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
Click it to see your results. Good luck!
Question 11.In general, _____ do NOT receive any compensation from their claims following liquidation of a business.
Suzie's Superstores, Inc. wants to file bankruptcy. They are insolvent and want to re-organize their debt, but stay in business.
Which type of Bankruptcy proceeding will Suzie's Superstores most likely to use?
Question 33.Anne borrows money from the bank in order to buy a tractor for her farm. In exchange, she gives the bank a legal claim to the tractor. This legal claim is called a:
Question 44.Richard and Susan are buying appliances for their new house. The appliances served as collateral for the loan, which is called _____.
Question 55.When the security agreement is complete and valid, the collateral becomes a part of the agreement. This is known as:
Question 66.Celine wants to buy a brand new house and borrows money from the National Commercial Bank. In exchange, she gives the bank a legal claim to the house. What is true about the house?
Question 77.Jonathan bought a car and offered it as collateral to the bank for a loan. Choose the statement that is TRUE after Jonathan's loan has been disbursed.
Question 88.Rick loses his job and is unable to make house payments for several months. His bank moves to seize the house by _____.
Question 99.In a secured transaction, the creditor is also known as the:
Question 1010.Paul borrows money from a leasing company in order to buy a truck for his business. In exchange, he gives the lender a legal claim to the truck. This scenario is an example of a:
Question 1111.In a secured transaction, the creditor's right to the collateral is also known as the:
Question 1212.Sometimes the creditor can legally take the collateral in an attempt to cover the debtor's loan. This is known as:
Question 1313.Jack borrows money from his friend Jill in order to buy a laptop. Jill is a:
Question 1414.What is a secured loan, in which a real property is given as collateral, called?
Question 1515.What type of debt is credit card borrowing?
Question 1616.The bank sells John's house at an auction. Unfortunately the selling price is less than what he still owes on the house, so John is forced to pay the difference through a _____.
Question 1717.Greg wants to file bankruptcy. He wants to keep all of his assets, though his house is in foreclosure. He owes $200,000 on his house and $100,000 in unsecured debt, but has a regular salary of almost $30,000 a year. Which chapter of bankruptcy is Greg likely use?
Question 1818.Kevin wants to file bankruptcy. He's the married father of three college-aged children. Kevin's family owns several assets including three cars and two houses. Between Kevin and his wife, the family makes an income of approximately $300,000. Their overall debt is over $1 million, with more than half of that in unsecured debt like credit cards and medical bills. Kevin will likely use _____ while filing for bankruptcy.
Question 1919.When a debtor fails to fulfill the terms of the security agreement, it's known as a:
Question 2020.Maria wants to file bankruptcy for her business, Maria's Manicures. She's closing the business completely and wants to completely liquidate the assets. She doesn't plan to re-open. Maria will use _____ bankruptcy.
Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back
to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!