The higher the income of a bankrupt, the more likely the debts will be discharged by Chapter 7 bankruptcy rather than by debt repayment over time.

Question

Quizplus · Accepted Answer

Chapter 7 bankruptcy involves liquidation of assets to discharge debts and is generally accessible to those with lower income levels. Higher income individuals are more likely directed towards Chapter 13 bankruptcy, which involves a repayment plan over time.

The Higher the Income of a Bankrupt, the More Likely