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Which of the Following Is True About Bankruptcy

Question 11

Multiple Choice

Which of the following is true about bankruptcy?


A) When one or more creditors file the bankruptcy petition against the debtor, it's called ordinary bankruptcy.
B) Chapter 11 of the Bankruptcy Reform Act of 1978 contains a provision for reorganizing the bankrupt business only when the bankruptcy petition is filed voluntarily.
C) Involuntary bankruptcy occurs when a debtor files an application with a court claiming that debts exceed assets and asks to be declared bankrupt.
D) Under bankruptcy law, people or businesses can petition the courts to be relieved of the obligation to pay debts they cannot repay.

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