Deck 8: The Voluntary Chapter 11 Bankruptcy Reorganization

Question 1

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

Answer 1

A debtor in possession generally has the rights and powers of a case trustee.

Question 2

Individuals may not file under Chapter 11 of the Code.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Briefly explain the purpose of the Chapter 11 plan.

Question 5

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

Question 6

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

Question 7

Briefly explain the purpose of the Chapter 11 disclosure statement.

Question 8

What is a small business debtor?

Question 9

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

Question 10

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

Question 11

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

Question 12

A trustee is never appointed in a Chapter 11 case.

Question 13

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

Question 14

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

Question 15

Briefly describe the role of a creditors' committee.