Asked by Jackson Caleb on Jul 07, 2024
Verified
Which of the following statements about Chapter 7 liquidations is true?
A) The debtor must disclose all of the property she owns and surrender this bankruptcy estate to the bankruptcy trustee.
B) The trustee takes all of the debtor's property and administers,liquidates,and distributes it.
C) Only individuals can file under Chapter 7.
D) If the bankrupt person follows all court orders,she is usually given a discharge,regardless of whether she was honest in her business transactions or not.
Chapter 7 Liquidations
A bankruptcy process where a debtor's assets are liquidated or sold off by a trustee to pay off creditors, leading to the discharge of remaining debts.
Bankruptcy Trustee
An appointed individual who oversees and manages the estate of a debtor during the bankruptcy process, with the power to sell assets and distribute the proceeds to creditors.
- Acquire knowledge of the structure and core principles of the U.S. Bankruptcy Code, noting the variances across distinct chapters.
- Understand the criteria and process for discharging debts in bankruptcy, including exceptions.
Verified Answer
KD
Kaitlyn DemeraskiJul 12, 2024
Final Answer :
A
Explanation :
A liquidation proceeding,traditionally called straight bankruptcy,is brought under Chapter 7 of the Bankruptcy Code.Individuals,as well as businesses,may file under Chapter 7.The debtor must disclose all of the property she owns and surrender this bankruptcy estate to the bankruptcy trustee.The trustee separates out certain property that the debtor is permitted to keep and then administers,liquidates,and distributes the remainder of the bankrupt debtor's estate.If the bankrupt person has been honest in her business transactions and in the bankruptcy proceedings,she is usually given a discharge (relieved)of her debts.
Learning Objectives
- Acquire knowledge of the structure and core principles of the U.S. Bankruptcy Code, noting the variances across distinct chapters.
- Understand the criteria and process for discharging debts in bankruptcy, including exceptions.