The filing of an involuntary petition in bankruptcy
  A. Allows creditors to continue their collection actions against the debtor while the bankruptcy action is pending.
  B. Stops the enforcement of a judgment lien against property in the bankruptcy estate.
  C. Terminates liens associated with exempt property.
  D. Terminates all security interests in property in the bankruptcy estate.
  Answer:B
  B is corrent. The filing of an involuntary petition in bankruptcy stops the enforcement of most collections of debts and legal proceedings against the debtor’s estate. Thus, the enforcement of judgment liens against property in the bankruptcy estate would be stopped by the filing of the involuntary petition.
  A is incorrect. The filing stays such collection actions so that the court can see that an orderly disposition of the debts is accomplished under bankruptcy law.
  C is incorrect. Liens are still enforceable against exempt property.
  D is incorrect. Security interests in property will still be enforced despite a bankruptcy. When distributing the assets of a debtor’s estate, secured creditors have first priority to the property acting as their collateral.