Personal insolvency can be legally satisfied by
A) Chapter 13 bankruptcy.
B) relinquishing all credit cards.
C) Chapter 7 bankruptcy.
D) b and c above.
E) a and c above.

Question

Quizplus · Accepted Answer

Personal insolvency can be legally satisfied through Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, and Chapter 13 bankruptcy, which reorganizes debts into a repayment plan. Relinquishing all credit cards may not be a legal solution for personal insolvency, and may actually harm credit scores in the long run. Therefore, choices (a) and (c) are the most viable solutions.

Personal Insolvency Can Be Legally Satisfied by