BANKRUPTCY LAW
FINAL EXAM
PROFESSOR BURTON
FALL 2002
Wednesday, December 18
INSTRUCTIONS
1. This is an open book exam.
2. You have three (3) hours to complete this exam. You may allocate your time as you wish.
3. There are three sections to this exam:
(1) 30 True/False Questions (25 points);
(2) 20 Multiple Choice (40 points);
(3) 1 Essay Question (75 points).
Total 140 POINTS
4. Write your exam number on your exam envelope, each used bluebook, at the top of this
exam question packet, and on the ParSCORE answer sheet. Do not use your name, student
ID number, or Social Security Number on any exam materials.
5. At the conclusion of the exam, return all test materials, including blue books, scratch paper,
the ParSCORE answer sheet and this exam packet to the envelope and submit it to the
proctor.
SECTION 3: ESSAY QUESTION
(75 points)
Before filing chapter 7 bankruptcy, Mark Malvais made the following transactions.
1. Ten weeks before filing, Mark borrowed $1,000 from Viola Vermicelli, his mother-in-law. At that time Mark had made up his mind to divorce his wife Lola, but did not tell this to Viola. Viola wants to argue that the debt is non-dischargeable. What would her argument be? Cite the relevant code section (s)
2. Six weeks before filing, Mark used his VISA card, which had a very high limit, to purchase a Honda Accord for $10,000. He ordered all of the options: air conditioning, power brakes, power windows, power steering, power door locks, cruise control, sunroof, and CD player. Is this debt non dischargeable? Does it matter whether he thought he could pay it, or knew he could not? Cite the relevant code section (s).
3. About a year before filing, Mark transferred his hunting cottage (which was not exempt) to his buddy, Bubba O'Riley, far $15,000. The lodge was worth $20,000 at the time of the transfer. What rights, if any, does Mark's bankruptcy trustee have to set aside the transfer? Does this transfer have any dischargeability ramifications for Mark? Cite relevant code sections.