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Trustee Duties & Responsibilities Flashcards

7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Trustee Duties & Responsibilities flashcards as text

  1. What is the primary duty of a Chapter 7 trustee under 11 U.S.C. § 704(a)(1)?

    Answer: To collect and reduce to money the property of the estate and close the estate as expeditiously as is compatible with the best interests of parties in interest

    Under 11 U.S.C. § 704(a)(1), the Chapter 7 trustee's primary duty is to collect and liquidate estate assets and close the estate as quickly as possible in the best interests of all parties.

  2. Under which section of the Bankruptcy Code are the statutory duties of a Chapter 7 trustee specifically enumerated?

    Answer: 11 U.S.C. § 704

    11 U.S.C. § 704 specifically enumerates the Chapter 7 trustee's duties, including collecting assets, investigating the debtor's financial affairs, and distributing proceeds to creditors.

  3. What action must a Chapter 7 trustee take upon discovering assets in a previously filed no-asset case?

    Answer: Issue a notice to creditors to file proofs of claim so they may participate in distribution

    When assets are discovered in a no-asset case, the trustee must notify creditors to file proofs of claim, giving them an opportunity to participate in the distribution of newly identified estate property.

  4. Under 11 U.S.C. § 365(d)(4), within what period must a trustee assume or reject an unexpired lease of nonresidential real property?

    Answer: 120 days after the order for relief, subject to extension by the court for cause

    Under 11 U.S.C. § 365(d)(4), the trustee must assume or reject a nonresidential real property lease within 120 days after the order for relief, with possible court-approved extensions.

  5. Which of the following is NOT a statutory duty of a Chapter 7 trustee under 11 U.S.C. § 704?

    Answer: Negotiate new loan terms and repayment plans on behalf of the debtor

    Negotiating new loan terms for the debtor is not a Chapter 7 trustee duty; trustees liquidate assets and distribute proceeds, not restructure the debtor's obligations.

  6. Under 11 U.S.C. § 326(a), a Chapter 7 trustee's maximum compensation is calculated based on which of the following?

    Answer: A sliding percentage scale applied to all moneys disbursed or turned over to parties in interest

    Under 11 U.S.C. § 326(a), a Chapter 7 trustee's maximum compensation is set by a sliding percentage scale tied to all moneys disbursed or turned over to parties in interest.

  7. Under 11 U.S.C. § 704(a)(4), the Chapter 7 trustee has a statutory duty to do which of the following?

    Answer: Investigate the financial affairs of the debtor regardless of whether creditors make a request

    Under 11 U.S.C. § 704(a)(4), the trustee has an affirmative statutory duty to investigate the debtor's financial affairs to identify potential assets and avoidable transfers, independent of creditor requests.