Nitin Singh, one of your firm's bankruptcy clients, owns a small parcel of land that is listed on ...

(Answer to Q. 1)  After the debtor files for bankruptcy, any real property the debtor owns is now part of the bankruptcy estate and under the control of the trustee. A debtor does not have the authority to sell or refinance any real property without the approval of the bankruptcy court.

Problems often arise when real estate law and bankruptcy intersect because the debtor usually obtains a discharge of debts before the trustee has had the opportunity to evaluate the property. A debtor may not understand that the bankruptcy case has not terminated until it has been closed. In this interim period, the debtor may mistakenly transfer the property through a sale because market conditions and rates have improved or an interested buyer has emerged. If a transfer or refinancing does take place, the trustee has the authority to undo the sale. This creates problems for the debtor and the new buyer. Therefore, it is vital for the debtor to wait until the bankruptcy case is officially closed or seek the court's permission before going forward with the sale. The closing of the case will signal to the debtor that any asset that was not administered during the course of the bankruptcy proceedings is now deemed abandoned and the debtor is free to sell the property.

(Answer to Q. 2)  A Uniform Commercial Code (UCC) filing is often used by creditors to secure rights to collateral specified in secured financing agreements. The creditor files the agreement with the Secretary of State's office lender and thus puts the public on notice that the creditor has a legally recognized interest in the collateral until it is fully paid for; it also establishes the creditor's legal title in the assets if the debtor defaults.
UCC filings often appear in bankruptcy proceedings. Paralegals who work in law offices that represent creditors may prepare UCC filings. When representing debtors, it is often the job of the paralegal to review and summarize UCC, judgment, tax, and other lien searches for the attorney. Learning how to draft UCC filings and research the state's database is an important function of the paralegal. The paralegal should become familiar with the secretary of state's website in the jurisdiction where the paralegal is employed because each state has different forms, requirements, and search methods on its website.

(Answer to Q. 3)  D

(Answer to Q. 4)  A

(Answer to Q. 5)  D

(Answer to Q. 6)  C

(Answer to Q. 7)  TRUE