Chapter 11 Bankruptcy

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?

Doomsday provision 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?

Loan restructuring agreement Signup and view all the answers

What does the concept of 'adequate protection' safeguard?

The value of the lien Signup and view all the answers

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

Equity cushion payment Signup and view all the answers

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

Reducing the creditor's claim amount Signup and view all the answers

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

When the debt exceeds the fair market value of the collateral Signup and view all the answers

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

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 Signup and view all the answers

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

The property rights for $40,000 Signup and view all the answers

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

Yes 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?

No Signup and view all the answers

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