Preview Questions Chapter 11 Attorney | Role Specific Skill

Question 1: How do "post-petition financing" agreements impact a Chapter 11 plan?

Which action should you take?

Choose only one option

They postpone the need for a reorganization plan

They require the debtor to liquidate non-essential assets

They provide creditors with immediate repayment of their claims

They allow the debtor to obtain necessary funding to operate during the reorganization

Question 2: When is a Chapter 11 debtor allowed to file a motion for the rejection of a collective bargaining agreement?

Which action should you take?

Choose only one option

Only if the union consents to the rejection of the agreement

After a mandatory 60-day waiting period

Immediately upon filing for bankruptcy, without needing any approval

Only with court approval after showing that the rejection is necessary for the reorganization

Question 3: In a Chapter 11 case, what happens if a debtor fails to confirm a reorganization plan?

Which action should you take?

Choose only one option

The case automatically reverts to a Chapter 13 proceeding

The case may be dismissed, or the debtor may be converted to a Chapter 7 liquidation

The debtor is automatically discharged from all debts

The debtor may be granted additional time to submit a revised plan

Question 4: When negotiating with creditors in Chapter 11, how should the attorney handle concerns about the debtor's future profitability?

Which action should you take?

Choose only one option

Dismiss concerns and focus on restructuring debt repayment

Avoid addressing concerns and focus on the legal process

Present realistic financial projections and evidence supporting the debtor's ability to succeed post-reorganization

Provide overly optimistic projections to calm creditor concerns

Question 5: In a Chapter 11 reorganization, what is the typical role of the creditors' committee?

Which action should you take?

Choose only one option

To offer direct funding to the debtor during the proceedings

To act as a neutral party overseeing the fairness of the proceedings

To approve the debtor's reorganization plan without negotiation

To represent the interests of the creditors and oversee the debtor's reorganization efforts

Question 6: What is the effect of the "automatic stay" in a Chapter 11 bankruptcy case?

Which action should you take?

Choose only one option

It halts all creditor collection actions, including lawsuits and foreclosures

It prevents the debtor from submitting a reorganization plan

It only applies to actions taken by unsecured creditors

It allows creditors to continue collection actions with court approval