CBS Legal Filing & Court Procedures 2

Question 1

Under the Bankruptcy Code, what is the effect of filing a voluntary petition on pending state court collection actions?

Accepted Answer

An automatic stay halts all collection actions immediately

Answer

Filing a voluntary petition triggers the automatic stay under 11 U.S.C. § 362, which immediately halts most collection actions against the debtor.

Question 2

A Chapter 11 debtor-in-possession fails to file its monthly operating report for two consecutive months. What is the most likely consequence?

Accepted Answer

Dismissal or conversion of the case upon trustee's motion

Answer

Failure to file required operating reports is grounds for dismissal or conversion under 11 U.S.C. § 1112(b)(4)(F).

Question 3

Which court has original and exclusive jurisdiction over all bankruptcy cases?

Accepted Answer

U.S. District Court

Answer

Under 28 U.S.C. § 1334(a), district courts have original and exclusive jurisdiction over all bankruptcy cases, which they refer to bankruptcy courts.

Question 4

When must a creditor file a proof of claim in a Chapter 7 no-asset case to preserve its right to distribution if assets are later discovered?

Accepted Answer

Within 90 days after the court issues notice of assets

Answer

Under FRBP 3002(c)(5), when a no-asset case converts to an asset case, creditors have 90 days from the court's notice of assets to file proofs of claim.

Question 5

What is required for a creditor to obtain relief from the automatic stay on grounds that its interest in property is not adequately protected?

Accepted Answer

Filing a motion under 11 U.S.C. § 362(d) and demonstrating lack of adequate protection

Answer

A creditor seeking stay relief must file a motion under § 362(d) and demonstrate cause, such as lack of adequate protection of its interest.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Legal Filing & Court Procedures 2