Asked by Daniel Volante on May 16, 2024
Verified
Which of the following types of bankruptcy occurs when a debtor turns over all assets to a trustee?
A) Liquidation
B) Reorganization
C) Reformation
D) Rehabilitation
E) Non-liquidation
Liquidation
The process of converting company assets into cash to pay off debts, often preceding the dissolution of the company.
Trustee
A person or firm that holds and administers property or assets for the benefit of a third party.
Assets
Resources owned by a company or individual with economic value.
- Comprehend the composition and principal elements of the Bankruptcy Code within the jurisdiction of United States Law.
- Discern between the different chapters of the Bankruptcy Code and their respective applications.
Verified Answer
RC
Ramón CastilloMay 17, 2024
Final Answer :
A
Explanation :
Liquidation occurs when a debtor turns over all assets to a trustee.
Learning Objectives
- Comprehend the composition and principal elements of the Bankruptcy Code within the jurisdiction of United States Law.
- Discern between the different chapters of the Bankruptcy Code and their respective applications.
Related questions
Which Chapter of the Bankruptcy Code Is Used to Reorganize ...
Which Title of the United States Code Contains the Bankruptcy ...
Which of the Following Is Called Straight Bankruptcy
Which of the Following Chapters of the Bankruptcy Code Recognizes ...
Which Chapter of the Bankruptcy Code Covers Liquidation ...