CBS Bankruptcy Laws & Regulations 3

Question 1

Under 11 U.S.C. § 341, the meeting of creditors must generally be held:

Accepted Answer

Between 21 and 50 days after the order for relief

Answer

Section 341 requires that the U.S. Trustee convene a meeting of creditors between 21 and 50 days after the order for relief in a Chapter 7 case.

Question 2

A 'cramdown' in Chapter 11 allows a plan to be confirmed over the objection of a dissenting class if:

Accepted Answer

At least one impaired accepting class exists and the plan is fair and equitable

Answer

Under § 1129(b), a court may confirm a plan over dissenting classes if at least one impaired class accepts and the plan does not discriminate unfairly and is fair and equitable.

Question 3

Which of the following transfers is MOST likely to be avoidable as a preferential transfer under § 547?

Accepted Answer

Payment made 85 days before filing enabling the creditor to obtain a perfected lien

Answer

A transfer enabling a creditor to receive more than they would in Chapter 7 liquidation, made within 90 days of filing, constitutes a preferential transfer under § 547(b).

Question 4

Under 11 U.S.C. § 506(a), a secured creditor's claim is bifurcated so that:

Accepted Answer

The secured portion equals collateral value and the remainder is unsecured

Answer

Section 506(a) bifurcates an undersecured creditor's claim into a secured claim equal to the collateral's value and an unsecured deficiency claim.

Question 5

The 'two-year lookback period' in 11 U.S.C. § 548 applies to which type of avoidance action?

Accepted Answer

Fraudulent transfers or obligations

Answer

Section 548 allows a trustee to avoid fraudulent transfers or obligations made within two years before the petition date.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Bankruptcy Laws & Regulations 3