Trustee Duties & Responsibilities Flashcards
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Read the first 7 Trustee Duties & Responsibilities flashcards as text
Who presides over the Section 341 meeting of creditors in a Chapter 7 bankruptcy case?
Answer: The Chapter 7 panel trustee assigned to administer the case
The Chapter 7 panel trustee — not the bankruptcy judge — presides over and examines the debtor under oath at the Section 341 meeting of creditors.
Under 11 U.S.C. § 547(b)(4)(A), a trustee may avoid a preferential transfer made to a non-insider creditor within what lookback period before the petition date?
Answer: 90 days
Under 11 U.S.C. § 547(b)(4)(A), the trustee may avoid preferential transfers made to non-insider creditors within the 90-day period immediately before the bankruptcy petition was filed.
Under what circumstances may a trustee abandon property of the estate under 11 U.S.C. § 554?
Answer: When the property is burdensome to the estate or is of inconsequential value and benefit to the estate
Under 11 U.S.C. § 554, a trustee may abandon property that is burdensome to the estate or that has inconsequential value and benefit, ensuring the estate does not waste resources on unprofitable assets.
Under 11 U.S.C. § 327(a), what are the two primary requirements for court approval of a trustee's employment of a professional?
Answer: Court approval must be obtained, and the professional must be disinterested and hold no adverse interest to the estate
Under 11 U.S.C. § 327(a), professionals may only be employed with court approval, and they must be disinterested persons who do not hold or represent an interest adverse to the estate.
Under 11 U.S.C. § 704(a)(6), to whom must a trustee furnish information about the estate and its administration?
Answer: To any party in interest that makes a reasonable written request for such information
Under 11 U.S.C. § 704(a)(6), the trustee must furnish information about the estate and its administration to any party in interest who makes a reasonable written request.
What constitutes a breach of fiduciary duty by a Chapter 7 trustee in administering the bankruptcy estate?
Answer: Failing to pursue viable avoidance actions that would materially benefit the estate and its creditors
A trustee breaches fiduciary duty by failing to pursue viable avoidance actions — such as preference or fraudulent transfer claims — where recovery would benefit the estate and creditors.
When a Chapter 7 trustee determines that there are no assets available for distribution to creditors, what is the required filing?
Answer: A no-asset report filed with the U.S. Trustee and the court
When a Chapter 7 trustee determines there are insufficient assets to distribute to creditors, the trustee files a no-asset report, which triggers the court's process to close the case without a creditor distribution.