Avoiding Powers of Debtor in Possession

Avoiding Powers of Debtor in Possession

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video tutorial explains the concept of possession in Chapter 11 bankruptcy, focusing on preferential and fraudulent payments. It details how preferential payments can be recovered if they allow creditors to receive more than they would in a Chapter 7 liquidation. The video also covers extensions for insider payments and various defenses against claims of preferential payments, such as contemporaneous exchange of value and payments in the ordinary course of business. Additionally, it defines fraudulent payments as those intended to defraud creditors or made without equivalent value.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary role of a debtor in possession in Chapter 11 bankruptcy?

To close the business

To pay off secured creditors first

To recover preferential and fraudulent payments

To liquidate all assets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is considered a preferential payment?

A payment made to an employee

A payment made to a secured creditor

A payment made within 90 days before bankruptcy that gives a creditor more than they would receive in Chapter 7

A payment made for routine business expenses

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is an example of a defense against a claim of preferential payment?

Payment made in the ordinary course of business

Payment made to a family member

Payment made to a new creditor

Payment made after bankruptcy filing

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a defense against preferential payment claims?

Payment to an insider

Ordinary course of business

Purchase money for collateral

Contemporaneous exchange of value

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What defines a fraudulent payment in the context of bankruptcy?

A payment made to a government agency

A payment made for routine business expenses

A payment made with the intent to hinder, delay, or defraud creditors

A payment made to a secured creditor

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How far back can a debtor in possession look to recover fraudulent payments?

5 years

1 year

90 days

2 years

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following scenarios could be considered a fraudulent transfer?

Making a routine payroll payment

Paying a utility bill

Transferring an asset for significantly less than its value

Selling equipment for its full market value