May 3, 2024 Bankruptcy Quiz

Which party can surcharge collateral under Section 506(c)?

Unscured Creditors Committee

Debtor

Administrative Expense Claimant

All of the above

Which of the following can constitute "adequate protection"?

Cash payments to the secured creditor

Replacement liens

Liens on unencumbered property

All of the above

Subject to exceptions, Section 552(a) provides that property acquired after the petition date is not subject to liens provided in a pre-petition security agreement.

True

False

Which of the following is *not* true about cash collateral hearings?

A bankruptcy court may commence a final hearing on a motion for authorization to use cash collateral no earlier than 14 days after the petition date.

A bankruptcy court may enter preliminary relief on cash collateral within 14 days after the petition date, but only to the extent necessary to avoid immediate and irreparable harm to the estate pending a final hearing.

A bankruptcy court may commence a final hearing on a motion for authorization to use cash collateral no earlier than 21 days after the petition date.

Each of the above statements is not true.

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May 3, 2024 Bankruptcy Quiz