Question

5.
How does non-exempt property figure into the process of Chapter 7?

A.
A court gives a debtor's non-exempt property to the creditors.

B.
A debtor may keep non-exempt property even if the value is more than the debt.

C.
A creditor holds the non-exempt property until the debtor pays the debt in cash.

D.
A court sells the debtor's non-exempt property and gives the earnings to creditors.

Answer 1

D.

In Chapter 7 the bankruptcy trustee liquidates (sells) the debtor’s non‑exempt property and distributes the proceeds to creditors (after trustee fees and priority claims).