CBS Legal Filing & Court Procedures 3 — Questions and Answers
Question 1: Which document must accompany a voluntary Chapter 7 petition to disclose all creditors and their addresses?
- Schedule A/B
- Master Creditor Matrix (mailing list) (Correct answer)
- Statement of Financial Affairs
- Form B104 – For Individual Debtors
Correct answer: Master Creditor Matrix (mailing list)
A creditor mailing matrix listing all creditors and their addresses must be filed with or shortly after the voluntary petition to enable court notices.
Question 2: Under 11 U.S.C. § 341(a), who presides over the meeting of creditors?
- The bankruptcy judge assigned to the case
- The U.S. Trustee or a designee (Correct answer)
- The debtor's attorney
- The clerk of the bankruptcy court
Correct answer: The U.S. Trustee or a designee
Section 341(a) requires the U.S. Trustee to preside at the meeting of creditors; bankruptcy judges are prohibited from attending.
Question 3: What is the deadline for filing a complaint objecting to a Chapter 7 individual debtor's discharge under 11 U.S.C. § 727?
- 60 days after the § 341 meeting first date
- 60 days after the petition date
- 30 days after entry of the discharge order
- Within the time fixed by FRBP 4004, generally 60 days after the first § 341 meeting date (Correct answer)
Correct answer: Within the time fixed by FRBP 4004, generally 60 days after the first § 341 meeting date
FRBP 4004(a) sets the deadline to object to discharge at 60 days after the first date set for the § 341 meeting of creditors.
Question 4: In a Chapter 11 case, what is the effect of the debtor's exclusive period to file a plan expiring without an extension?
- The case is automatically dismissed
- Any party in interest may file a competing plan of reorganization (Correct answer)
- The U.S. Trustee must file a plan within 30 days
- The debtor loses its status as debtor-in-possession
Correct answer: Any party in interest may file a competing plan of reorganization
Once the debtor's exclusivity period expires, any party in interest, including creditors, may file a competing plan under § 1121(c).
Question 5: Which Federal Rule of Bankruptcy Procedure governs the filing of adversary proceedings in bankruptcy cases?
- FRBP 2002
- FRBP 7001 et seq. (Correct answer)
- FRBP 3007
- FRBP 9014
Correct answer: FRBP 7001 et seq.
FRBP 7001 through 7087 govern adversary proceedings, which are contested matters requiring a complaint and summons like civil litigation.
Question 6: A secured creditor moves for relief from the automatic stay under § 362(d)(2). What two elements must the creditor prove?
- Debtor is insolvent and cannot propose a feasible plan
- Debtor has no equity in the property AND the property is not necessary for an effective reorganization (Correct answer)
- The creditor's claim is undersecured and the debtor has defaulted
- The property is depreciating and adequate protection payments are delinquent
Correct answer: Debtor has no equity in the property AND the property is not necessary for an effective reorganization
Under § 362(d)(2), stay relief requires proving the debtor has no equity in the property AND it is not necessary for an effective reorganization.
Question 7: What is the primary purpose of the Statement of Financial Affairs (SOFA) filed in bankruptcy?
- To list all assets and their current market values
- To disclose the debtor's recent financial history and transactions (Correct answer)
- To identify which debts the debtor wishes to reaffirm
- To provide the debtor's monthly budget for the means test
Correct answer: To disclose the debtor's recent financial history and transactions
The SOFA requires disclosure of recent income, payments to creditors, lawsuits, property transfers, and other financial transactions to enable trustee investigation.
CBS Legal Filing & Court Procedures 3
Which document must accompany a voluntary Chapter 7 petition to disclose all creditors and their addresses?