Section 2: 15–25%R7
Bankruptcy
Exam insight
Bankruptcy pulls together the priority of claims, preferential transfers, and nondischargeable debts, all of them regularly tested. Once you know which chapter applies and the order assets are paid out, you can answer most questions cold.
What AICPA wants you to know
- 1Distinguish Chapter 7, Chapter 11, and Chapter 13
- 2Apply the rules for voluntary vs. involuntary petitions
- 3Explain the automatic stay and what property enters the estate
- 4Apply the means test for individual Chapter 7 eligibility
- 5Order the priority of unsecured claims
- 6Identify preferential and fraudulent transfers and nondischargeable debts
Patterns in this topic
The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.
Exam tip
Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.