Question

In which type of bankruptcy does the individual lose all of their assets?

chapter 7
chapter 13
both chapters 7 and 13
neither

Answer 1

In Chapter 7 bankruptcy, individuals can lose all of their non-exempt assets, as the bankruptcy trustee may sell these assets to pay off creditors. Therefore, the correct answer is **Chapter 7**. In contrast, Chapter 13 bankruptcy typically allows individuals to keep their assets while they repay debts over a specified period.