Which of the following is false regarding bankruptcy proceedings?
A) Some type of payment plan is created and approved, usually by the creditors and the court.
B) Debts remaining after the plan is carried out are usually discharged.
C) Bankruptcy proceedings start with a finding of insolvency.
D) All bankruptcy cases begin with a filing of petition for bankruptcy.
E) The court determines whether an order of relief should be granted.

Question

Quizplus · Accepted Answer

Bankruptcy proceedings do not always start with a finding of insolvency. Insolvency is a financial state where one's liabilities exceed their assets, but not all types of bankruptcy require a finding of insolvency to initiate proceedings. For example, in some jurisdictions, voluntary bankruptcy filings do not require the debtor to be insolvent.

Which of the Following Is False Regarding Bankruptcy Proceedings