CBA CBA Asset Administration & Liquidation

Question 1

Under 11 U.S.C. § 541, which of the following is included in the bankruptcy estate?

Accepted Answer

Property acquired by inheritance within 180 days after the petition date

Answer

Under § 541(a)(5), property acquired by inheritance, bequest, or devise within 180 days after the petition date becomes property of the estate.

Question 2

Which section of the Bankruptcy Code authorizes a trustee to use, sell, or lease estate property outside the ordinary course of business?

Accepted Answer

11 U.S.C. § 363

Answer

Section 363 governs the trustee's authority to use, sell, or lease estate property, with court approval required for transactions outside the ordinary course of business.

Question 3

What is the primary purpose of a § 341 meeting of creditors in a bankruptcy case?

Accepted Answer

To allow the trustee and creditors to examine the debtor about assets and liabilities

Answer

The § 341 meeting allows the trustee and any attending creditors to examine the debtor under oath about financial affairs, assets, and liabilities.

Question 4

A Chapter 7 trustee discovers unscheduled assets after a no-asset report was filed. What should the trustee do?

Accepted Answer

Reopen the case and administer the newly discovered assets

Answer

When assets are discovered after a no-asset report, the trustee should move to reopen the case so the assets can be administered for the benefit of creditors.

Question 5

What is a 'stalking horse' bidder in a § 363 sale process?

Accepted Answer

An initial bidder who sets a floor price in exchange for bid protections

Answer

A stalking horse bidder negotiates the initial purchase agreement and sets the minimum price, typically receiving bid protections such as a breakup fee in exchange.

(CBA) Certified Bankruptcy Administrator Practice Test

(CBA) Certified Bankruptcy Administrator Practice Test

CBA CBA Asset Administration & Liquidation