CBA Professional Ethics & Standards 4

Question 1

A bankruptcy administrator who discovers that estate property has been transferred to a relative of the debtor post-petition should first:

Accepted Answer

File a motion to avoid the transfer under § 549 after consulting with the trustee

Answer

Post-petition transfers made without court authorization are avoidable under § 549, and the proper remedy is a formal avoidance action, not unilateral demands or unsupervised settlements.

Question 2

Which of the following best describes the ethical significance of a 'nunc pro tunc' employment order in bankruptcy?

Accepted Answer

It signals that proper disclosure and court approval were not obtained timely and courts scrutinize them closely

Answer

Nunc pro tunc orders retroactively authorize employment when timely approval was not sought, and courts scrutinize them closely because they may reflect a failure of professional responsibility.

Question 3

An estate professional who bills for 'lumped' time entries combining multiple tasks risks having fees:

Accepted Answer

Reduced or disallowed because the court cannot assess necessity and reasonableness

Answer

Block billing or lumped time entries prevent courts from evaluating whether individual tasks were necessary, so courts frequently reduce or disallow fees that cannot be independently assessed.

Question 4

A trustee who sells estate assets to a company in which the trustee holds a minority ownership interest without court approval violates which rule?

Accepted Answer

11 U.S.C. § 363(b) and the trustee's fiduciary duty against self-dealing

Answer

Selling estate assets to an entity in which the trustee has an interest without court approval violates § 363 and the trustee's core fiduciary duty to avoid self-dealing.

Question 5

When a creditor's attorney engages in ex parte communication with the bankruptcy judge about a pending contested matter, this conduct:

Accepted Answer

Constitutes a serious ethical violation that undermines judicial impartiality

Answer

Ex parte communications with the court about contested matters violate the Rules of Professional Conduct because they deprive opposing parties of notice and opportunity to respond.

(CBA) Certified Budget Analyst Practice Test

(CBA) Certified Budget Analyst Practice Test

CBA Professional Ethics & Standards 4