Under terms of the U.S.federal bankruptcy code,chapter ________ call for a ________ pr.
A)11; liquidation
B)7; reorganization
C)7; liquidation
D)None of the above

Question

Quizplus · Accepted Answer

According to the U.S. federal bankruptcy code, chapter 7 calls for liquidation which involves the sale of a debtor's non-exempt assets with the proceeds being distributed to creditors. Chapter 11, on the other hand, provides for reorganization of a debtor's business affairs, debts, and assets. Therefore, option A and B are incorrect. Option D is incorrect as there should be a correct answer.

Under Terms of the U