A government that is unable to satisfy claims against it
A) Is prohibited from filing bankruptcy.
B) May seek protection under the Federal Bankruptcy Code, using the same section that is used by businesses.
C) May seek protection under the Federal Bankruptcy Code, using a special section directed to governments.
D) Is automatically placed under the jurisdiction of a higher level of government.

Question

Quizplus · Accepted Answer

Governments can seek protection under the Federal Bankruptcy Code, but they use a special section directed specifically to governments, not the sections used by businesses. This allows for a structured way to address their unique financial situations and obligations.

A Government That Is Unable to Satisfy Claims Against It