CBA Asset Administration & Liquidation Flashcards

Under 11 U.S.C. § 541, which of the following is included in the bankruptcy estate?

Answer: Property acquired by inheritance within 180 days after the petition date

Under § 541(a)(5), property acquired by inheritance, bequest, or devise within 180 days after the petition date becomes property of the estate.

Which section of the Bankruptcy Code authorizes a trustee to use, sell, or lease estate property outside the ordinary course of business?

Answer: 11 U.S.C. § 363

Section 363 governs the trustee's authority to use, sell, or lease estate property, with court approval required for transactions outside the ordinary course of business.

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

Answer: To allow the trustee and creditors to examine the debtor about assets and liabilities

The § 341 meeting allows the trustee and any attending creditors to examine the debtor under oath about financial affairs, assets, and liabilities.

A Chapter 7 trustee discovers unscheduled assets after a no-asset report was filed. What should the trustee do?

Answer: Reopen the case and administer the newly discovered assets

When assets are discovered after a no-asset report, the trustee should move to reopen the case so the assets can be administered for the benefit of creditors.

What is a 'stalking horse' bidder in a § 363 sale process?

Answer: An initial bidder who sets a floor price in exchange for bid protections

A stalking horse bidder negotiates the initial purchase agreement and sets the minimum price, typically receiving bid protections such as a breakup fee in exchange.

Under the Bankruptcy Code, which party has the primary duty to administer assets and make distributions to creditors in a Chapter 7 case?

Answer: The Chapter 7 trustee

The Chapter 7 trustee is responsible for collecting and liquidating estate property and distributing proceeds to creditors in order of statutory priority.