Topic: The Role of Mediation in Bankruptcy
Quiz Format: Multiple Choice
1. What is the primary purpose of mediation in bankruptcy proceedings? A. To replace the bankruptcy judge B. To liquidate debtor assets C. To enforce creditor claims D. To facilitate negotiation and settlement among parties ✅ Correct Answer: D 📝 Explanation: Mediation helps parties resolve disputes efficiently without prolonged litigation.
2. Which of the following is a benefit of using mediation in bankruptcy cases? A. It reduces litigation costs and time B. It guarantees a ruling in favor of the debtor C. It replaces the need for court approval D. It eliminates the need for legal representation ✅ Correct Answer: A 📝 Explanation: Mediation encourages resolution outside of court, saving time and legal expenses.
3. In bankruptcy mediation, who typically serves as the mediator? A. The debtor’s attorney B. A neutral third party with expertise in bankruptcy law C. The presiding bankruptcy judge D. A bankruptcy trustee ✅ Correct Answer: B 📝 Explanation: A neutral expert helps guide parties toward resolution without bias.
4. Which type of bankruptcy dispute is most commonly resolved through mediation? A. Automatic stay violations B. Asset liquidation C. Plan confirmation disputes D. Creditor priority ranking ✅ Correct Answer: C 📝 Explanation: Plan confirmation disputes often involve complex negotiations best handled through mediation.
5. What ethical consideration is important in bankruptcy mediation? A. Disclosing all settlement terms publicly B. Ensuring the mediator advocates for one party C. Keeping negotiations confidential D. Allowing only secured creditors to participate ✅ Correct Answer: C 📝 Explanation: Confidentiality encourages open dialogue and protects sensitive information.