Chapter 11 Bankruptcy
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Chapter 11 Bankruptcy

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@BelovedMagic

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Questions and Answers

What is the basis for granting relief from the stay under 362(d)(1)?

  • Protecting the debtor's assets from liquidation
  • Resolving outstanding issues in the bankruptcy case (correct)
  • Providing immediate relief to all creditors
  • Ensuring the debtor's effective reorganization

    • Under what circumstances can relief be granted to creditors from the automatic stay against specific debtor property under 362(d)(2)?

  • If the property is essential to the debtor's business operations
  • If the debtor lacks equity in the property (correct)
  • If the property is jointly owned with a non-debtor spouse
  • If the property has appreciated in value since the filing of bankruptcy

    • Who can file a motion for relief from the stay according to the text?

  • Only the debtor's attorney
  • Creditors with unsecured claims
  • Only the court-appointed trustee
  • Any party in interest (correct)

    • Which provision in a mortgage agreement allows the creditor to foreclose on its mortgage if the debtor files for bankruptcy?

    <p>Doomsday provision</p> Signup and view all the answers

    In a consumer case, courts might be more lenient to a debtor to strike down the doomsday provision if it is a part of what type of agreement?

    <p>Loan restructuring agreement</p> Signup and view all the answers

    What does the concept of 'adequate protection' safeguard?

    <p>The value of the lien</p> Signup and view all the answers

    Which of the following is NOT one of the four ways under §361 to provide adequate protection?

    <p>Equity cushion payment</p> Signup and view all the answers

    What is an example of providing adequate protection by paying depreciation payments?

    <p>Reducing the creditor's claim amount</p> Signup and view all the answers

    In the context of adequate protection, when does interest continue to accrue on a note?

    <p>When the debt exceeds the fair market value of the collateral</p> Signup and view all the answers

    What are the three requirements for § 553 to preserve a right of setoff?

    <p>The creditor must have a prepetition claim against the debtor, the creditor must owe the debtor a prepetition debt, and the respective obligations must be mutual</p> Signup and view all the answers

    In problem 5-16, what right of the creditor qualifies for adequate protection?

    <p>The property rights for $40,000</p> Signup and view all the answers

    In problem 5-18, can an equity cushion be the creditor’s adequate protection?

    <p>Yes</p> Signup and view all the answers

    In problem 5-18, does it make a difference if another creditor has a junior lien on the equipment for $60,000?

    <p>No</p> Signup and view all the answers

    When does interest continue to accrue on a note in the context of problem 5-18?

    <p>When the debt exceeds the fair market value of the collateral</p> Signup and view all the answers

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