Question 1

Under what circumstances is bankruptcy court approval not needed for the sale of property by a debtor?

Accepted Answer

Bankruptcy court approval is not needed if the sale is in the ordinary course of business of the debtor.

Question 2

Briefly describe the role of a creditors' committee.

Accepted Answer

A creditors' committee represents the interests of all unsecured creditors and may employ professionals to be paid from the bankruptcy estate.

Question 3

What is a small business debtor?

Accepted Answer

A small business debtor is a debtor in a Chapter 11 case in which no trustee or committee of unsecured creditors has been appointed, and whose noncontingent, liquidated debt does not exceed $2,343,300 (this dollar amount will change every three years; the dollar amount shown here is as of April 1, 2010).

Question 4

A trustee is never appointed in a Chapter 11 case.

Accepted Answer

A) True 
 B)False

Question 5

Bankruptcy court approval is needed for a debtor to operate a business after the filing of a petition.

Accepted Answer

A) True 
 B)False

Question 6

Briefly explain the purpose of the Chapter 11 plan.

Accepted Answer

The answer of Briefly explain the purpose of the Chapter...

Question 7

A corporation may not receive a discharge in a Chapter 11 case if the plan provides for the liquidation of the debtor.

Accepted Answer

A) True 
 B)False

Question 8

Briefly explain the purpose of the list of creditors holding the 20 largest unsecured claims.

Accepted Answer

The answer of Briefly explain the purpose of the list...

Question 9

How may a secured claim be treated under a Chapter 11 plan?

Accepted Answer

The answer of How may a secured claim be treated...

Question 10

Individuals may not file under Chapter 11 of the Code.

Accepted Answer

A) True 
 B)False

Question 11

There is no meeting of creditors conducted in a Chapter 11 case.

Accepted Answer

A) True 
 B)False

Question 12

A corporation may receive a discharge in a Chapter 11 case.

Accepted Answer

A) True 
 B)False

Question 13

The estate of the debtor may be reorganized or liquidated under Chapter 11.

Accepted Answer

A) True 
 B)False

Question 14

What is the significance of a debtor's status as debtor in possession?

Accepted Answer

The answer of What is the significance of a debtor's...

Question 15

Briefly explain the purpose of the Chapter 11 disclosure statement.

Accepted Answer

The answer of Briefly explain the purpose of the Chapter...

Exam 8: The Voluntary Exam 11 Bankruptcy Reorganization

Under what circumstances is bankruptcy court approval not needed for the sale of property by a debtor?

Briefly describe the role of a creditors' committee.

What is a small business debtor?

A trustee is never appointed in a Chapter 11 case.

Bankruptcy court approval is needed for a debtor to operate a business after the filing of a petition.

Briefly explain the purpose of the Chapter 11 plan.

A corporation may not receive a discharge in a Chapter 11 case if the plan provides for the liquidation of the debtor.

Briefly explain the purpose of the list of creditors holding the 20 largest unsecured claims.

How may a secured claim be treated under a Chapter 11 plan?

Individuals may not file under Chapter 11 of the Code.

There is no meeting of creditors conducted in a Chapter 11 case.

A corporation may receive a discharge in a Chapter 11 case.

The estate of the debtor may be reorganized or liquidated under Chapter 11.

What is the significance of a debtor's status as debtor in possession?

Briefly explain the purpose of the Chapter 11 disclosure statement.