VA Bar Creditors Rights 3

Question 1

When a bankruptcy petition is filed, the automatic stay under 11 U.S.C. § 362 immediately halts which of the following?

Accepted Answer

A secured creditor's attempt to repossess collateral

Answer

The automatic stay broadly stops creditor collection actions including repossession; criminal proceedings and police-power actions are excepted.

Question 2

In a Chapter 7 bankruptcy, the trustee may avoid a preferential transfer to a non-insider creditor if made within how many days before the petition date?

Accepted Answer

90 days

Answer

The preference look-back period is 90 days for non-insiders and 1 year for insiders under 11 U.S.C. § 547(b)(4).

Question 3

Under Virginia's bankruptcy exemptions, the homestead exemption (Va. Code § 34-4) allows an individual debtor to exempt up to:

Accepted Answer

$5,000 in property

Answer

Virginia's homestead exemption is $5,000 (plus $500 per dependent) in any property the debtor selects.

Question 4

A bankruptcy trustee seeks to avoid a fraudulent transfer under 11 U.S.C. § 548. For an actually fraudulent transfer, the trustee must show the debtor transferred property with:

Accepted Answer

Intent to hinder, delay, or defraud creditors

Answer

Actual fraud under § 548(a)(1)(A) requires proof of actual intent to hinder, delay, or defraud; constructive fraud uses the insolvency/value test.

Question 5

In a Chapter 11 reorganization, a plan of reorganization is confirmed over the objection of a dissenting class of creditors under the 'cramdown' provision when:

Accepted Answer

The plan is fair and equitable and does not unfairly discriminate

Answer

Cramdown under 11 U.S.C. § 1129(b) requires the plan to be fair and equitable and not unfairly discriminate against the dissenting class.

(VA Bar) Virginia Bar Exam Practice Test

(VA Bar) Virginia Bar Exam Practice Test

VA Bar Creditors Rights 3