ACFE Exam CFE-Law 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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Alonso

13 days 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

14 days 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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2 months ago

I think the answer is D) An independent insolvency representative.

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