CBA Trustee Duties & Responsibilities 2

Question 1

Who presides over the Section 341 meeting of creditors in a Chapter 7 bankruptcy case?

Accepted Answer

The Chapter 7 panel trustee assigned to administer the case

Answer

The bankruptcy judge assigned to the case

Answer

The U.S. Trustee acting as a judicial officer

Answer

The debtor's attorney in coordination with the court clerk

Question 2

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?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

180 days

Question 3

Under what circumstances may a trustee abandon property of the estate under 11 U.S.C. § 554?

Accepted Answer

When the property is burdensome to the estate or is of inconsequential value and benefit to the estate

Answer

At any time and for any reason, without needing court approval

Answer

Only after obtaining written consent from all secured creditors

Answer

Only following confirmation of a reorganization plan by the court

Question 4

Under 11 U.S.C. § 327(a), what are the two primary requirements for court approval of a trustee's employment of a professional?

Accepted Answer

Court approval must be obtained, and the professional must be disinterested and hold no adverse interest to the estate

Answer

The professional must have prior bankruptcy experience and carry malpractice insurance

Answer

The U.S. Trustee must personally approve the hire, and fees must be capped at $10,000

Answer

The professional must be licensed in the state of the bankruptcy filing and approved by all creditors

Question 5

Under 11 U.S.C. § 704(a)(6), to whom must a trustee furnish information about the estate and its administration?

Accepted Answer

To any party in interest that makes a reasonable written request for such information

Answer

Only to the bankruptcy court upon its request

Answer

Only to the U.S. Trustee and secured creditors

Answer

Only to the debtor and the debtor's legal counsel

Question 6

What constitutes a breach of fiduciary duty by a Chapter 7 trustee in administering the bankruptcy estate?

Accepted Answer

Failing to pursue viable avoidance actions that would materially benefit the estate and its creditors

Answer

Selling estate property at fair market value through a properly noticed public auction

Answer

Paying duly allowed administrative expense claims before general unsecured creditors

Answer

Employing a professional who has not previously handled bankruptcy matters

Question 7

When a Chapter 7 trustee determines that there are no assets available for distribution to creditors, what is the required filing?

Accepted Answer

A no-asset report filed with the U.S. Trustee and the court

Answer

A motion to convert the case to Chapter 13

Answer

A final accounting submitted to all creditors by certified mail

Answer

A declaration of insolvency signed by the debtor and filed with the court