CBA Trustee Duties & Responsibilities

Question 1

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

Accepted 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

Answer

To rehabilitate the debtor's financial affairs and negotiate new loan terms

Answer

To confirm a reorganization plan for the debtor

Answer

To represent the debtor's interests in negotiations with secured creditors

Question 2

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

Accepted Answer

11 U.S.C. § 704

Answer

11 U.S.C. § 521

Answer

11 U.S.C. § 726

Answer

11 U.S.C. § 327

Question 3

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

Accepted Answer

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

Answer

Immediately dismiss the case and refile it as an asset case

Answer

File an amended no-asset report with the court

Answer

Transfer the case to Chapter 11 for reorganization

Question 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?

Accepted Answer

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

Answer

30 days after the order for relief

Answer

60 days after the order for relief

Answer

180 days after the order for relief

Question 5

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

Accepted Answer

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

Answer

Investigate the financial affairs of the debtor

Answer

File a final report and account of the administration of the estate

Answer

Examine proofs of claims and object to the allowance of any claim that is improper

Question 6

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

Accepted Answer

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

Answer

A flat fee established annually by the U.S. Trustee Program

Answer

Hourly billing at rates approved by the bankruptcy court

Answer

The total number of creditors and proofs of claim filed in the case

Question 7

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

Accepted Answer

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

Answer

Investigate the financial affairs of the debtor only if a creditor files a formal complaint

Answer

Investigate only if the case involves assets exceeding $100,000

Answer

Delegate investigation duties entirely to the U.S. Trustee