Bankruptcy can indeed be forced upon a debtor by a creditor (A is incorrect), does not relieve a debtor of legal responsibility for all debts as some debts are non-dischargeable (B is incorrect), can be declared by corporations (C is incorrect), and does not always entitle all creditors to share equally as there are different classes of creditors with varying priorities (D is incorrect).

Solved

Bankruptcy

Question 460

Multiple Choice

Bankruptcy:

A) may not be forced upon a debtor by a creditor
B) relieves a debtor of legal responsibility for all debts
C) cannot be declared by corporations
D) entitles all creditors to share equally
E) none of the other choices

Correct Answer: