ACFE CFE-Law Exam - Topic 3 Question 60 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 60
Topic #: 3

Under the World Bank Principles for Effective Insolvency and Credit/Debtor Regimes (World Bank Principles), which of the following parties should administer the debtor's estate in liquidation bankruptcy proceedings?

AThe jurisdiction's commerce department or equivalent agency

BThe creditor with the largest claim against the debtor

CThe debtor, supervised by an independent insolvency representative

DAn independent insolvency representative

Show Suggested Answer

Suggested Answer: D

by Ora at May 01, 2025, 04:34 PM

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Zack

2 months ago

I thought it would be A, like a government agency?

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Geraldine

3 months ago

Totally agree, D makes the most sense!

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Laila

3 months ago

D is the correct answer, an independent insolvency representative is key.

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Wava

3 months ago

Really? I’m surprised it’s not the creditor with the largest claim!

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Rosamond

3 months ago

Wait, why not let the debtor manage it? Seems risky.

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Bronwyn

3 months ago

I recall something about the commerce department being involved, but I don't think they actually administer the estate. I lean towards D as well.

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Lucy

4 months ago

I practiced a question similar to this, and I think it mentioned that an independent insolvency representative is crucial for fairness. So, D seems likely.

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Aileen

4 months ago

I'm not entirely sure, but I feel like the debtor should have some control, especially if they're supervised. Could it be C?

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Janet

4 months ago

I think I remember that the World Bank Principles emphasize the importance of having an independent party involved in insolvency cases. So, maybe it's D?

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Bobbye

4 months ago

Ah, I remember learning about the World Bank Principles in one of my classes. I believe they emphasize the use of an independent insolvency representative to oversee the bankruptcy process. So I'm leaning towards option D as the right answer here.

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Marion

5 months ago

This is a tricky one. The question is asking specifically about the World Bank Principles, which I don't have much experience with. I'll have to make an educated guess on this one and hope for the best.

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Veronika

5 months ago

Based on my understanding, the World Bank Principles generally recommend an independent insolvency representative to administer the debtor's estate in a liquidation bankruptcy. I think option D is likely the correct answer here.

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Otis

5 months ago

Hmm, I'm not too familiar with the World Bank Principles, so I'm a bit unsure how to approach this. I'll need to read through the question and options closely to try to figure out the right answer.

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King

5 months ago

This question seems straightforward - the World Bank Principles likely specify who should administer the debtor's estate in a liquidation bankruptcy. I'll carefully review the answer choices to determine which party they recommend.

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Alonso

9 months ago

Haha, imagine the creditor with the largest claim running the show? Talk about a recipe for disaster! Definitely gotta go with D on this one.

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Benedict

9 months ago

Hmm, I'm not sure. The debtor themselves supervised by an independent representative sounds like a potential conflict of interest. I'll go with D - an independent insolvency representative is the way to go.

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Marla

8 months ago

Yes, D - an independent insolvency representative is the best choice according to the World Bank Principles.

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Pearline

8 months ago

I think the debtor being supervised by an independent representative could lead to conflicts.

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Veronique

8 months ago

I agree, having an independent insolvency representative ensures impartiality.

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Patrick

9 months ago

D! The World Bank Principles clearly state that an independent insolvency representative should administer the debtor's estate in liquidation bankruptcy proceedings. This ensures impartiality and protects the interests of all stakeholders.

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