BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Chapter 7
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Chapter 11
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Chapter 12
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Chapter 13
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Detailed explanation-1: -Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.
Detailed explanation-2: -Chapter 7 bankruptcy is sometimes called “liquidation” bankruptcy. Businesses going through this type of bankruptcy are past the stage of reorganization and must sell off assets to pay their creditors.
Detailed explanation-3: -However, in 2021, if you make less than the following figures, you likely qualify for Chapter 7 bankruptcy: One-person household: $50, 521. Two-person household: $65, 680. Three-person household: $75, 500.
Detailed explanation-4: -Debts such as child support, alimony, most student loans, and certain tax debts are typically not discharged. A Chapter 7 bankruptcy is typically removed from your credit report 10 years after the date you filed, and this is done automatically, so you don’t have to initiate that removal.