BAN Practice Test

1Single Choice

A single debtor files a voluntary petition under Chapter 7 of the Bankruptcy Code. Which of the following statements best describes the immediate effect of the filing on the debtor's preexisting legal obligations?

A.All judgments already entered against the debtor are immediately vacated and must be refiled in the bankruptcy court.
B.The automatic stay of 11 U.S.C. ?º 362 generally operates to halt most collection actions against the debtor upon the filing of the petition.
C.The debtor's contractual obligations are automatically discharged on the petition date without further court order.
D.The debtor is required to surrender all nonexempt property to the trustee before any creditor claims may be addressed.

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