Preview Questions Chapter 11 Attorney | Role Specific Skill

Question 1: How do you resolve a situation where a major creditor is unwilling to accept the debtor's proposed payment plan under Chapter 11?

Which action should you take?

Choose only one option

Proceed with the plan without the creditor's approval

Ignore the creditor's objections and continue with the original terms

Allow the creditor to veto the plan

Engage in additional negotiations to adjust the terms, possibly through a "cramdown" procedure or other concessions

Question 2: What is a debtor's right to use, sell, or lease property in Chapter 11 bankruptcy?

Which action should you take?

Choose only one option

The debtor is prohibited from selling or leasing property without creditor consent

The debtor may only use, sell, or lease property with trustee consent

The debtor can use, sell, or lease property in the ordinary course of business with court approval

The debtor has no right to use or sell property during reorganization

Question 3: Under Chapter 11, when does the debtor's exclusive period to propose a reorganization plan end?

Which action should you take?

Choose only one option

365 days from the petition filing date

120 days from the petition filing date

180 days from the petition filing date

60 days from the petition filing date

Question 4: How does the debtor's right to reject contracts help during the reorganization process?

Which action should you take?

Choose only one option

The debtor can only reject contracts with the approval of creditors, not the court.

The debtor can reject contracts or leases that are unprofitable or hinder reorganization, subject to court approval.

The debtor is required to honor all contracts regardless of their financial impact.

The debtor is prohibited from rejecting any contracts during Chapter 11.

Question 5: Under what circumstances can a Chapter 11 plan be "crammed down" on dissenting creditors?

Which action should you take?

Choose only one option

If the creditors agree to the terms without dispute

If the debtor has already liquidated its assets

If the debtor is in severe financial distress and needs to avoid liquidation

If the plan is fair and equitable, and at least one class of creditors accepts it

Question 6: How do you handle creditor voting when proposing a reorganization plan in Chapter 11?

Which action should you take?

Choose only one option

By ignoring creditor input and moving forward with the debtor's preferred plan.

By allowing only secured creditors to vote on the reorganization plan.

By ensuring that each creditor class votes on the plan, and the plan can only be confirmed if it is accepted by a majority of each class.

By forcing creditors to accept the plan without any voting process.