CBS Chapter 7 Liquidation Procedures 3

Question 1

Under § 362(c)(3), the automatic stay terminates how many days after filing if the debtor had a prior case dismissed within the preceding year?

Accepted Answer

30 days

Answer

Under § 362(c)(3), the automatic stay terminates 30 days after the new petition if the debtor had one prior dismissal within the past year, unless extended by court order.

Question 2

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

Accepted Answer

Payment to an insider 10 months before filing for an antecedent debt

Answer

Insider preference lookback is one year; a payment to an insider 10 months pre-petition for an antecedent debt satisfies all § 547(b) elements.

Question 3

What is the primary purpose of the § 341 meeting of creditors in a Chapter 7 case?

Accepted Answer

For the trustee and creditors to examine the debtor under oath

Answer

The § 341 meeting is conducted by the trustee (not the judge) to examine the debtor under oath about assets, liabilities, and financial affairs; creditors may also ask questions.

Question 4

A Chapter 7 debtor received a $15,000 inheritance 45 days after the petition date. Is this property of the estate?

Accepted Answer

Yes, because inheritances within 180 days of filing belong to the estate under § 541(a)(5)

Answer

Section 541(a)(5)(A) captures inheritances the debtor becomes entitled to within 180 days of the petition date as property of the estate.

Question 5

Which of the following debts is NON-DISCHARGEABLE in a Chapter 7 case under § 523(a)?

Accepted Answer

Student loans, absent undue hardship

Answer

Student loans are excepted from discharge under § 523(a)(8) unless the debtor can prove repayment would cause undue hardship.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Chapter 7 Liquidation Procedures 3