The filing of an involuntary bankruptcy petition under the Federal Bankruptcy Code:
  a.Stops the enforcement of judgment liens against property in the bankruptcy estate.
  b.Terminates all security interests in property in the bankruptcy estate.
  c.Terminates liens on exempt property.
  d.Stops the debtor from incurring new debts.
  Answer:A
  Choice "A" is correct. The filing of a petition in bankruptcy invokes an automatic stay against all attempts to collect on most debts of the debtor.
  Choice "c" is incorrect. The filing of a petition in bankruptcy invokes an automatic stay against all attempts to collect on most debts of the debtor. The filing does not terminate liens, but merely stays them (i.e., temporarily prevents their enforcement).
  Choice "b" is incorrect. The filing of a petition in bankruptcy invokes an automatic stay against all attempts to collect on most debts of the debtor. The filing does not terminate security interests but rather merely stays them (i.e., temporarily prevents their enforcement).
  Choice "d" is incorrect. The filing of a petition in bankruptcy invokes an automatic stay against all attempts to collect on most debts of the debtor. The filing does not prevent the debtor from incurring new debts.