A discharge of bankruptcy will be withheld from a corporation until all of its debts have been paid in full.

Question

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A discharge of bankruptcy is a legal proceeding that releases a debtor from personal liability for certain debts. However, a corporation is not a person, and therefore cannot file for bankruptcy. As a result, a discharge of bankruptcy will not be withheld from a corporation until all of its debts have been paid in full.

A Discharge of Bankruptcy Will Be Withheld from a Corporation