1. You have three (3) hours to complete this exam.

3. This exam is open book. You are allowed to use any written materials you wish.

2. This exam consists of three (3) parts.

Part I is True/False. Recommended time is 45 minutes.
Part II is Multiple Choice. Recommended time is 45 minutes.


Correct True/False and Multiple Choice answers are to be marked on the separate “ParSCORE TEST FORM” using pen or pencil and following the instructions on that form. If you change your answer, place a clear X through the wrong answer and mark the correct answer. A machine will score the exam and any ambiguities will be counted as a wrong answer.

Part III is one (1) essay question. Recommended time is one (1) hour.

Please write your answers on only one side of the page, using every other line. Please write legibly.

3. Write your exam number on this exam envelope, all used blue books, at the top of this exam packet, and on the ParScore answer sheet. Do not use your name, student ID number, or Social Security Number on any exam materials.

4. At the conclusion of the exam, return all test materials, including blue books, ParScore answer sheet, scratch paper, and this exam packet to the envelope and submit it to the proctor. DO NOT seal the envelope. Students who do not return all exam materials at the end of the exam will not be graded.

GOOD LUCK!

BANKRUPTCY ESSAY
(75 points)

Della filed a chapter 7 bankruptcy on October 1. The following questions concern the activities of Della and her creditors. Explain whether and how the automatic stay affects the debtor and other parties (or their conduct) in each of the situations.

1. Della had a loan from Big Bank, but fell behind in her payments. The bank filed a suit against her. She failed to answer the complaint, so on September 1 the Bank obtained a default judgment against her. Under state law, the Bank would be entitled to a judicial lien on all of Della’s personal property by filing a J-1 form with the Secretary of State. Before the Bank had a chance to file the J-1, the Bank received a notice from the clerk of the bankruptcy court, informing it that Della had filed bankruptcy. The Bank wants to be a secured creditor.

2. Della obtained a loan last year from Last Chance Finance Company. Her boyfriend Gary co-signed. The due date of the loan was October15. Della did not pay. Last Chance Finance Company now wants to file suit against Gary.

3. Della owed a large debt to Victoria’s Secret, a lingerie shop. When the manager discovered that Della had filed bankruptcy, he ran ten blocks to her house. He pounded repeatedly on her front door, while he screamed, loud enough for her neighbors to hear, “You better pay, you Deadbeat.”

4. A week before filing bankruptcy, Della discovered that Gary was cheating on her. She went to his office, found his new Porsche in the parking lot, and gouged the paint with her keys. The security guard caught her and turned her over to the police. The District Attorney then filed charges against her for misdemeanor vandalism. Della’s court appearance is set for October 10. On September 30, Gary filed a lawsuit against Della, seeking an injunction against her for stalking him.

END OF EXAM