Asked by Santosh Poudel on May 25, 2024

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Neldon must file for bankruptcy. If Neldon files a Chapter ________ that means he must turn over his assets to a trustee who will take over management of Neldon's assets and sell nonexempt assets.

A) 7
B) 9
C) 11
D) 13
E) 15

Trustee

An individual or organization that holds or manages property, assets, or a trust on behalf of another.

Nonexempt Assets

Assets that a debtor must forfeit to creditors or to a bankruptcy trustee under bankruptcy proceedings, not protected by exemption laws.

Chapter 7

A chapter of the U.S. Bankruptcy Code that involves the liquidation of a debtor's assets to repay creditors.

  • Gain insight into the unique aspects of different bankruptcy filings (Chapter 7, 11, 13, 15) and the procedures associated with each.
  • Identify the duties and obligations of a trustee in the context of bankruptcy cases.
  • Acquire knowledge on the processes of liquidation and reorganization entailed in bankruptcy proceedings.
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YA
Yuvraj AhujaMay 29, 2024
Final Answer :
A
Explanation :
Chapter 7 bankruptcy involves liquidation, where the debtor's nonexempt assets are sold by a trustee, and the proceeds are used to pay creditors.