CBA Trustee Duties & Responsibilities

Question 1

What is the primary duty of a Chapter 7 trustee under 11 U.S.C. § 704(a)(1)?

Accepted Answer

To collect and reduce to money the property of the estate and close the estate as expeditiously as is compatible with the best interests of parties in interest

Answer

Under 11 U.S.C. § 704(a)(1), the Chapter 7 trustee's primary duty is to collect and liquidate estate assets and close the estate as quickly as possible in the best interests of all parties.

Question 2

Under which section of the Bankruptcy Code are the statutory duties of a Chapter 7 trustee specifically enumerated?

Accepted Answer

11 U.S.C. § 704

Answer

11 U.S.C. § 704 specifically enumerates the Chapter 7 trustee's duties, including collecting assets, investigating the debtor's financial affairs, and distributing proceeds to creditors.

Question 3

What action must a Chapter 7 trustee take upon discovering assets in a previously filed no-asset case?

Accepted Answer

Issue a notice to creditors to file proofs of claim so they may participate in distribution

Answer

When assets are discovered in a no-asset case, the trustee must notify creditors to file proofs of claim, giving them an opportunity to participate in the distribution of newly identified estate property.

Question 4

Under 11 U.S.C. § 365(d)(4), within what period must a trustee assume or reject an unexpired lease of nonresidential real property?

Accepted Answer

120 days after the order for relief, subject to extension by the court for cause

Answer

Under 11 U.S.C. § 365(d)(4), the trustee must assume or reject a nonresidential real property lease within 120 days after the order for relief, with possible court-approved extensions.

Question 5

Which of the following is NOT a statutory duty of a Chapter 7 trustee under 11 U.S.C. § 704?

Accepted Answer

Negotiate new loan terms and repayment plans on behalf of the debtor

Answer

Negotiating new loan terms for the debtor is not a Chapter 7 trustee duty; trustees liquidate assets and distribute proceeds, not restructure the debtor's obligations.

(CBA) Certified Bankruptcy Administrator Practice Test

(CBA) Certified Bankruptcy Administrator Practice Test

CBA Trustee Duties & Responsibilities