Legal Environment 4th Edition by Jeffrey Beatty, Susan Samuelson

Exercise 8

CPA QUESTION A voluntary petition filed under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code:
(a) is not available to a corporation unless it has previously filed a petition under the reorganization provisions of Chapter 11 of the Code.
(b) automatically stays collection actions against the debtor except by secured creditors.
(c) will be dismissed unless the debtor has 12 or more unsecured creditors whose claims total at least $5,000.
(d) does not require the debtor to show that the debtor's liabilities exceed the fair market value of assets.