Question

Which of the following phrases best summarizes Chapter 7 bankruptcy?
a.
discharge debt and keep property
b.
discharge debt and liquidate assets
c.
reorganize debt and keep property
d.
reorganize debt and liquidate assets


Please select the best answer from the choices provided.

A
B
C
D

Answer 1

B — discharge debt and liquidate assets.

Chapter 7 is the liquidation form of bankruptcy: nonexempt assets are sold to pay creditors and qualifying remaining debts are discharged.