Preview Questions Chapter 11 Attorney | Role Specific Skill

Question 1: In a Chapter 11 proceeding, how should a debtor address a claim that is disputed?

Which action should you take?

Choose only one option

Include the claim in the reorganization plan without contesting it

Allow the creditor to resolve the dispute without involvement

Deny the claim outright and submit a counterclaim for damages

File a motion with the court to determine the amount and validity of the claim

Question 2: What rights do Chapter 11 debtors have regarding the rejection of executory contracts?

Which action should you take?

Choose only one option

They may reject contracts that are burdensome and detrimental to the estate

They must seek court approval before rejecting any contracts

They can only reject contracts if the creditor agrees to the terms

They are obligated to honor all contracts, regardless of terms

Question 3: What is the "debtor's discharge" in Chapter 11 and when does it occur?

Which action should you take?

Choose only one option

It is automatically granted once the debtor files for Chapter 11

It is the discharge of certain debts after the debtor successfully completes the reorganization plan

It occurs once all creditors approve the debtor's plan

It eliminates all tax liabilities for the debtor upon filing

Question 4: What is the primary objective when negotiating with creditors in a Chapter 11 case?

Which action should you take?

Choose only one option

To restructure the debtor's obligations in a way that is fair and feasible for all parties

To extend the debtor's debt repayment schedule indefinitely

To reduce the amount of debt owed to secured creditors

To ensure the debtor is forced to liquidate its assets

Question 5: In a Chapter 11 bankruptcy, what does the debtor's "exclusive period" refer to?

Which action should you take?

Choose only one option

The period during which only the debtor can propose a reorganization plan

The period when the debtor can only liquidate assets

The time when the debtor is prohibited from making any further financial commitments

The time allowed for creditors to submit competing reorganization plans

Question 6: How do you balance long-term goals for the debtor with the interests of creditors during reorganization negotiations?

Which action should you take?

Choose only one option

By focusing solely on satisfying creditors' demands without considering the debtor's future viability.

By structuring a plan that balances the debtor's ability to operate post-reorganization with fair treatment of creditors.

By ignoring creditor concerns and solely focusing on the debtor's long-term viability.

By allowing creditors to dictate the terms, regardless of the debtor's future.