When a Business Files for Bankruptcy, What Does the Law

When a business files for bankruptcy, what does the law allow when cash is not available to pay the debts after assets are sold?

A) The law excuses the business from paying all the remaining unpaid debts.
B) The law excuses the business from paying some of the remaining unpaid debts.
C) The law requires paying all creditors the full amount owed.
D) The law requires paying all creditors a portion of the debt, depending upon the reason for the debt.