Chapter 21 Assessment Answers
Matching Key Terms
1. l 9. o
2. j 10. m
True/False Quiz
16. F 21. T
Discussion Questions
26. Examples include the debtor’s interest in real property used as a residence; one motor vehicle;
27. The first is a preferential payment, in which the debtor gives favorable treatment to one creditor
28. Examples include student loans, unless repaying them would constitute an extreme hardship;
29. A debtor who wishes to file under any chapter of the bankruptcy law must, unless exempt,
31. In a Chapter 11 bankruptcy, the debtor proposes a reorganization plan in order to pay back
Thinking Critically about the Law
32. Most people would agree that under no circumstances should creditors be allowed to force
34. Priority debts are deemed by the law to be sufficiently important so that these must be paid
35. Some students might argue that municipalities, like individuals and businesses, should be
Case Questions
37a. N
38a. N
39a. Y
Case Analysis
40. Principle of Law:
41. Principle of Law:
42. Principle of Law:
Legal Research
43. Answers may vary, but might include a serious downturn in the economy, significant
BONUS ACTIVITIES
Ask students to find examples of local and regional companies who have filed for bankruptcy.