BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Give creditors an opportunity to recover from overwhelmingdebt
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Give debtors an opportunity to recover from overwhelmingdebt
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Pay selected creditors only
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Pay only selected debtors
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Detailed explanation-1: -One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations.
Detailed explanation-2: -Bankruptcy Recovery means any proceeds received by the Company or its subsidiaries in settlement of any claim (including any counterclaim), action, suit, or other proceeding in connection with any Bankruptcy of any other Person.
Detailed explanation-3: -While your credit score will typically take a significant hit after a bankruptcy filing, with hard work, patience and discipline it is possible to fully recover and get back on your feet.
Detailed explanation-4: -When you file for bankruptcy protection, a discharge from the court will relieve you of your obligation to repay your creditors for certain debts. As noted, once your debt is discharged, your creditors cannot contact you or attempt to collect the debt in any way.