CBA CBA Creditor Rights & Claims 2

Question 1

A claim is considered 'contingent' in bankruptcy when it is:

Accepted Answer

Subject to a future event that may never occur

Answer

A contingent claim depends on the occurrence of a future event that may or may not happen, such as a guarantee that has not yet been called.

Question 2

Which type of creditor has the right to credit bid at a sale of their collateral under 11 U.S.C. § 363(k)?

Accepted Answer

Secured creditors

Answer

Section 363(k) grants secured creditors the right to credit bid up to the full amount of their allowed secured claim at a sale of their collateral.

Question 3

What must a creditor demonstrate to obtain relief from the automatic stay under 11 U.S.C. § 362(d)(1)?

Accepted Answer

Cause, including lack of adequate protection

Answer

Under § 362(d)(1), a court may grant stay relief for 'cause,' with lack of adequate protection of the creditor's interest being the most common basis.

Question 4

Under 11 U.S.C. § 547, what is the preference period for transfers to non-insider creditors?

Accepted Answer

90 days before the petition date

Answer

The preference look-back period for non-insider creditors is 90 days before the petition date under § 547(b)(4)(A).

Question 5

What is 'adequate protection' in bankruptcy, and why is it required?

Accepted Answer

Compensation to a secured creditor for value lost during the stay

Answer

Adequate protection compensates secured creditors for any decline in the value of their collateral during the bankruptcy case while the automatic stay is in effect.

(CBA) Certified Bankruptcy Administrator Practice Test

(CBA) Certified Bankruptcy Administrator Practice Test

CBA CBA Creditor Rights & Claims 2