All of the following are true of the bankruptcy process except for
A) The debtor firm may seek protection from its creditors by initiating bankruptcy or may be forced into bankruptcy by its creditors.
B) When creditors file for bankruptcy on behalf of the debtor firm, the action is said to be involuntary bankruptcy.
C) Once either a voluntary or involuntary petition is filed, the debtor firm is protected from any further legal action related to its debts until the bankruptcy proceedings are completed.
D) The filing of a petition triggers an automatic stay even before the court accepts the request.
E) An automatic stay suspends all judgments, collection activities, foreclosures, and repossessions of property by the creditors on any debt or claim that arose before the filing of the bankruptcy petition

Question

Quizplus · Accepted Answer

The Answer of All of the following are true of the bankruptcy process except for
A) The debtor firm may seek protection from its creditors by initiating bankruptcy or may be forced into bankruptcy by its creditors.
B) When creditors file for bankruptcy on behalf of the debtor firm, the action is said to be involuntary bankruptcy.
C) Once either a voluntary or involuntary petition is filed, the debtor firm is protected from any further legal action related to its debts until the bankruptcy proceedings are completed.
D) The filing of a petition triggers an automatic stay even before the court accepts the request.
E) An automatic stay suspends all judgments, collection activities, foreclosures, and repossessions of property by the creditors on any debt or claim that arose before the filing of the bankruptcy petition

All of the Following Are True of the Bankruptcy Process