Preview Questions Bankruptcy Lawyer | Role Specific Skill

Question 1: How do you manage a situation where a debtor seeks to convert their Chapter 11 case into a Chapter 7 case due to lack of viable reorganization options?

Which action should you take?

Choose only one option

By ignoring the conversion request and continuing with Chapter 11 proceedings.

By filing a motion to convert the case, assessing the pros and cons of liquidation, and advising the debtor on the implications.

By advising the debtor to abandon the bankruptcy case entirely.

By opposing the conversion and forcing the debtor to remain in Chapter 11.

Question 2: How do you manage the complexities of an insolvent company with multiple subsidiaries in a cross-border insolvency case?

Which action should you take?

Choose only one option

By coordinating with international insolvency practitioners to address local issues and maximize asset recovery.

By transferring the subsidiaries' assets to the main company to simplify the case.

By focusing only on the primary company and disregarding the subsidiaries.

By handling the subsidiaries' insolvency separately without considering the main company.

Question 3: What strategies do you employ when representing a debtor in a Chapter 7 case where the creditor objects to the debtor's claimed exemptions?

Which action should you take?

Choose only one option

By conceding to the creditor's objections and agreeing to reduce exemptions.

By ignoring the creditor's objections and proceeding with the exemptions as claimed.

By reviewing the creditor's objections and filing a motion to confirm the debtor's exemptions based on applicable law.

By negotiating a settlement with the creditor to resolve the dispute.

Question 4: What should a Bankruptcy Lawyer do when a creditor files an objection to a debtor's proposed plan in a Chapter 13 case?

Which action should you take?

Choose only one option

Review the creditor's objections, assess their validity, and file a response or negotiate a resolution to facilitate the plan's approval

Reject the entire plan without reviewing the creditor's objections

Allow the debtor to modify the plan without addressing the creditor's objections

Ignore the objections and proceed with the plan as proposed by the debtor

Question 5: How do you assess the feasibility of a Chapter 13 repayment plan when the debtor's income is variable and unpredictable?

Which action should you take?

Choose only one option

By proposing a Chapter 7 liquidation case instead.

By working with the debtor to develop a flexible plan that adjusts payments based on income fluctuations while still satisfying the bankruptcy code requirements.

By refusing to accept a Chapter 13 plan unless it is based on stable income projections.

By insisting on a fixed repayment schedule without flexibility.

Question 6: How should a Bankruptcy Lawyer address the issue of "insider trading" during a bankruptcy proceeding?

Which action should you take?

Choose only one option

By allowing insider trading to continue as it does not directly affect bankruptcy outcomes

By identifying any unlawful trading activities by insiders and taking action to prevent or challenge those actions under applicable laws

By assuming insider trading is only an issue in securities regulation and not bankruptcy law

By focusing solely on corporate assets and disregarding trading activities by insiders