Preview Questions Bankruptcy Lawyer | Role Specific Skill

Question 1: How do you address the issue of unlisted debts in a Chapter 7 bankruptcy case where the creditor seeks to have their debt discharged?

Which action should you take?

Choose only one option

By ignoring the unlisted debts and proceeding with the bankruptcy case.

By reviewing the debtor's schedules and determining whether the debt was inadvertently omitted, then filing an adversary proceeding if necessary.

By listing all debts as undisputed and unchallenged.

By allowing the creditor to make a claim outside the bankruptcy process.

Question 2: How should a Bankruptcy Lawyer handle a case where a debtor is attempting to discharge debts related to fraudulent activity?

Which action should you take?

Choose only one option

By accepting the debtor's claim that the fraud was unintentional and granting discharge

By ignoring fraudulent debts and focusing on the debtor's assets

By filing an adversary proceeding to object to discharge under Section 523 of the Bankruptcy Code, based on fraud or willful misconduct

By advising the debtor that fraudulent debts can always be discharged

Question 3: How does the "absolute priority rule" apply in Chapter 11 reorganizations, and what is the Bankruptcy Lawyer's role in ensuring its application?

Which action should you take?

Choose only one option

The rule allows for arbitrary adjustments to the payment hierarchy

The rule can be ignored if creditors are willing to accept less than full payment

The rule only applies to Chapter 7 cases and does not affect Chapter 11 reorganizations

The absolute priority rule ensures that senior creditors are paid in full before junior creditors, and the lawyer must monitor the fairness of the plan's structure

Question 4: In Chapter 11, which of the following is the most likely reason a debtor would propose a liquidation plan instead of a reorganization plan?

Which action should you take?

Choose only one option

The debtor does not believe a reorganization is possible

The debtor is unwilling to pay back creditors

The debtor is seeking to discharge secured debts

The debtor has been unable to successfully negotiate with creditors

Question 5: In a Chapter 11 reorganization, what should a Bankruptcy Lawyer do when a creditor files an objection to the debtor's disclosure statement?

Which action should you take?

Choose only one option

Review the disclosure statement carefully, address the creditor's objections, and modify the statement to ensure compliance with the Bankruptcy Code

Ignore the objection and proceed with the filing without modifications

Immediately file a motion to dismiss the case

Agree to the creditor's objections and file a new disclosure statement

Question 6: How do you handle a situation where a Chapter 11 debtor's plan proposes a cramdown on a secured creditor's claim?

Which action should you take?

Choose only one option

By objecting to the cramdown and seeking to uphold the creditor's original terms.

By ensuring the plan meets the requirements of 11 U.S.C. ?1129, ensuring the creditor is paid the present value of their secured claim.

By allowing the debtor to impose the cramdown without contest.

By dismissing the debtor's plan and seeking liquidation under Chapter 7.