Preview Questions Bankruptcy Lawyer | Role Specific Skill

Question 1: In Chapter 11 cases, who typically votes on the debtor's reorganization plan?

Which action should you take?

Choose only one option

A court-appointed trustee

The debtor alone

Only unsecured creditors

Classes of creditors and equity security holders

Question 2: How would you address a creditor's objection to the discharge of a debt in a Chapter 7 bankruptcy based on allegations of fraud?

Which action should you take?

Choose only one option

By withdrawing the debtor's discharge request.

By presenting evidence to dispute the fraud claim and seeking a court decision on dischargeability.

By agreeing to the creditor's objection and allowing the debt to remain.

By ignoring the fraud allegations and proceeding with the bankruptcy.

Question 3: How should a Bankruptcy Lawyer manage a case where there are complex issues regarding the sale of assets during bankruptcy proceedings?

Which action should you take?

Choose only one option

By selling the assets without any court approval to expedite the process

By allowing the debtor to sell assets without restrictions to expedite the resolution

By prioritizing the sale of only liquid assets and ignoring non-liquid assets

By ensuring that the sale complies with bankruptcy laws, obtaining approval from the court, and ensuring that the transaction benefits creditors

Question 4: How should a Bankruptcy Lawyer approach objections to discharge filed by a creditor in a Chapter 7 case?

Which action should you take?

Choose only one option

By dismissing the creditor's objection without filing a response

By reviewing the objection, gathering evidence, and filing a response to defend the debtor's right to discharge the debt

By agreeing to modify the discharge terms without challenging the creditor

By ignoring the creditor's objection and proceeding with the discharge

Question 5: In insolvency cases, how should a Bankruptcy Lawyer handle claims made by creditors who assert that a debtor has engaged in preferential treatment?

Which action should you take?

Choose only one option

By agreeing to a settlement with creditors on the preference issue without further legal analysis

By accepting all preference claims without examination

By investigating the transactions and defending or challenging the preference claims based on the timing and nature of the transfers

By ignoring preference claims unless they are explicitly raised by the court

Question 6: How do you handle preference payments in bankruptcy cases, particularly when there is a risk of clawback by the trustee?

Which action should you take?

Choose only one option

By ignoring preference payments and focusing solely on asset liquidation

By assuming that all payments made within the preference period are safe from clawback

By reviewing the timing and circumstances of payments to ensure they are within the permissible limits and defending against any challenge

By advising clients to make large payments to family members before filing