A straight bankruptcy:
A) eliminates all the obligations of a debtor.
B) results in the loss of all the assets of a debtor.
C) results in the repayment of debt within 3 to 5 years.
D) exempts a debtor from all tax payments and payments for alimony and child support.
E) allows a debtor to retain some personal assets as per federal regulations.

Question

Quizplus · Accepted Answer

A straight bankruptcy, also known as Chapter 7 bankruptcy, does not eliminate all the obligations of a debtor but rather allows for the discharge of certain debts. It does result in the loss of some assets, but not necessarily all assets, as some personal assets can be exempted under federal regulations. It does not result in the repayment of debt within 3 to 5 years, and it does not exempt a debtor from tax payments or payments for alimony and child support.

A Straight Bankruptcy