July 28, 2023 Bankruptcy Quiz

Which of the following statements is true about Section 363 of the Code?

It applies to the lease of estate property.

It addresses cash collateral, too.

It does not mandate notice and a hearing for sales in the ordinary course of business.

It is not the only Code provision that addresses the sale of estate property free of liens.

All of the above.

Which of the following is *not* a basis for a Section 363 sale that is to be free and clear of an entity's interest in the property?

Applicable nonbankruptcy law permits the sale free and clear of such entity's interest.

Such interest is in bona fide dispute.

After notice and an opportunity to respond, no entity claiming or having an interest in the property objects to the sale.

Such entity could be compelled in a legal or equitable proceeding to accept money in exchange for such interest.

A creditor's right, if any, to credit bid in connection with a proposed Section 363 sale is governed by what subpart of Section 363?

Upon the completion of any and all sales that are not in the ordinary course of business, Rule 6004 requires that debtor, trustee, or auctioneer file an itemized statement of the property sold, the name of each purchaser, and the price received for the property (whether it is sold by unit, by lot, or in bulk).

True

False

Which of the following parties is entitled to notice of a proposed sale of estate property that is outside the ordinary course of business and to be free and clear of all liens, claims, and encumbrances?

(A) United States Trustee

(B) Creditors Committee (if any)

(D) All creditors (regardless of whether they have a lien on or claim an interest in the property).

(A), (B), and (C), only.

All of the above.

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July 28, 2023 Bankruptcy Quiz