Asked by Thamizh Ezhilnambi on Jun 08, 2024

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Which bankruptcy law gives a firm immediate protection from creditors?

A) Chapter 7
B) Chapter 11
C) Chapter 13
D) Chapter 6

Bankruptcy Law

The area of law dealing with the process and rules that govern the financial failure of individuals or organizations, including the resolution of debts and assetsdivision.

Immediate Protection

Measures taken to safeguard people, property, or information from threats or harm without delay.

Creditors

Parties or institutions to whom money is owed.

  • Gain insight into the essential aspects and ramifications of bankruptcy regulations, focusing on their role in business realignment and the hierarchy of creditor rights.
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Verified Answer

MS
Maria SantanaJun 13, 2024
Final Answer :
B
Explanation :
Chapter 11 gives a firm immediate protection from creditors, while it reorganizes its debts and assets. Chapter 7 and Chapter 13 also provide protection, but they have different processes and eligibility criteria. Chapter 6 does not exist as a bankruptcy option, making it an incorrect answer choice.