Mixed Deck — All CBA Topics Flashcards
100 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 20 Mixed Deck — All CBA Topics flashcards as text
Under the US Bankruptcy Code, what is the deadline for most creditors to file a proof of claim in a Chapter 7 case?
Answer: 90 days after the first date set for the meeting of creditors
Under FRBP 3002(c), most creditors must file a proof of claim no later than 90 days after the first date set for the meeting of creditors under §341.
What is the most common mistake professionals make when implementing bankruptcy laws & procedures strategies?
Answer: Developing contingency plans for high-probability risk scenarios
Developing contingency plans for high-probability risk scenarios is the correct approach because effective bankruptcy laws & procedures in the bankruptcy administrator field requires adherence to professional standards, evidence-based practices, and systematic methodology. This approach ensures consistent, high-quality outcomes while maintaining professional accountability.
What is an 'executory contract' in the context of US bankruptcy proceedings?
Answer: A contract where material performance remains due on both sides
An executory contract is one where both parties still have material obligations remaining to be performed, making rejection or assumption necessary in bankruptcy.
Which section of the Bankruptcy Code allows a trustee to avoid fraudulent transfers?
Answer: 11 U.S.C. § 548
Section 548 empowers the trustee to avoid transfers made with actual fraudulent intent or for less than reasonably equivalent value within two years before the petition.
Who is primarily responsible for managing the case timeline in bankruptcy court?
Answer: The bankruptcy trustee and court
The court and trustee oversee timelines and ensure that both debtors and creditors meet required deadlines.
Which section of the Bankruptcy Code governs the allowance and disallowance of claims?
Answer: 11 U.S.C. § 502
Section 502 of the Bankruptcy Code governs the allowance and disallowance of claims against the estate.
What is the primary purpose of a balance sheet?
Answer: To show financial position and net worth
The balance sheet outlines the debtor’s assets, liabilities, and equity at a specific point in time, showing net worth.
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.
Under 11 U.S.C. § 502(a), what is the default status of a properly filed proof of claim?
Answer: The claim is deemed allowed unless a party in interest files an objection
Under 11 U.S.C. § 502(a), a proof of claim filed in accordance with the rules is deemed allowed unless a party in interest — including the trustee — objects to its allowance.
Which tool or methodology is most appropriate for analyzing bankruptcy laws & procedures outcomes?
Answer: Maintaining professional boundaries while building collaborative relationships
Maintaining professional boundaries while building collaborative relationships is the correct approach because effective bankruptcy laws & procedures in the bankruptcy administrator field requires adherence to professional standards, evidence-based practices, and systematic methodology. This approach ensures consistent, high-quality outcomes while maintaining professional accountability.
In a Chapter 7 liquidation, which waterfall correctly reflects the priority of distributions?
Answer: Secured → Administrative → Priority Unsecured → General Unsecured → Equity
Distributions flow first to secured creditors (from collateral), then administrative expenses, then priority unsecured claims, then general unsecured claims, and finally to equity holders.
What is the role of the Official Committee of Unsecured Creditors (UCC) in a Chapter 11 case?
Answer: To represent and advocate for the interests of general unsecured creditors
The UCC is appointed by the U.S. Trustee to represent unsecured creditors collectively and may investigate the debtor, negotiate plan terms, and retain professionals at estate expense.
What is the role of a bankruptcy trustee?
Answer: Oversees and administers the bankruptcy estate
The trustee manages the bankruptcy estate, including collecting assets, reviewing claims, and distributing payments to creditors.
What constitutes a breach of fiduciary duty by a Chapter 7 trustee in administering the bankruptcy estate?
Answer: Failing to pursue viable avoidance actions that would materially benefit the estate and its creditors
A trustee breaches fiduciary duty by failing to pursue viable avoidance actions — such as preference or fraudulent transfer claims — where recovery would benefit the estate and creditors.
Which law governs professional conduct in U.S. bankruptcy cases?
Answer: Bankruptcy Code and Rules
The U.S. Bankruptcy Code and Federal Rules of Bankruptcy Procedure guide ethical and compliant behavior in bankruptcy cases.
A Chapter 7 trustee discovers unscheduled assets after a no-asset report was filed. What should the trustee do?
Answer: Reopen the case and administer the newly discovered assets
When assets are discovered after a no-asset report, the trustee should move to reopen the case so the assets can be administered for the benefit of creditors.
Which financial ratio indicates a debtor's ability to pay short-term obligations?
Answer: Current ratio
The current ratio compares current assets to current liabilities to measure short-term financial health.
Why is ethical conduct essential in bankruptcy administration?
Answer: To ensure fairness and legal integrity
Ethical conduct ensures fairness, protects stakeholders, and maintains the integrity of the legal process.
How can professionals avoid conflicts of interest in bankruptcy cases?
Answer: Disclose conflicts and recuse if needed
Disclosing potential conflicts and withdrawing when appropriate helps maintain trust and ethical standards.
Which tool or methodology is most appropriate for analyzing case management outcomes?
Answer: Maintaining professional boundaries while building collaborative relationships
Maintaining professional boundaries while building collaborative relationships is the correct approach because effective case management in the bankruptcy administrator field requires adherence to professional standards, evidence-based practices, and systematic methodology. This approach ensures consistent, high-quality outcomes while maintaining professional accountability.