In a Chapter 7 bankruptcy,debtor:
A)is required to draw up a petition listing all assets and liabilities.
B)does not have to pay a filing fee.
C)is called a "bankrupt."
D)is absolved of alimony and child support payments.
E)does not have to repay educational loans.

Question

Quizplus · Accepted Answer

In a Chapter 7 bankruptcy, the debtor is required to draw up a petition listing all assets and liabilities. This is necessary for the bankruptcy trustee to evaluate the debtor's financial situation and determine which assets, if any, can be used to pay off creditors.

Answer: C
 In a Chapter 7 bankruptcy, the debtor is referred to as a "bankrupt." This terminology is used in legal documents and court proceedings related to the bankruptcy process.

Answer: D
 In a Chapter 7 bankruptcy, the debtor is generally not absolved of alimony and child support payments. These types of debts are considered priority debts and are not dischargeable in bankruptcy.

Answer: E
 In general, educational loans are not dischargeable in a Chapter 7 bankruptcy unless the debtor can demonstrate that repaying the loans would constitute an undue hardship. However, there are certain circumstances under which some or all of a debtor's educational loans may be discharged.

In a Chapter 7 Bankruptcy,debtor