Which of the following statements is not correct regarding Chapter 7 of the Bankruptcy Act?
A) The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible.
B) Chapter 7 provides for an immediate liquidation of assets.
C) Petitioners seeking to file Chapter 7 must pass a "means" test.
D) Most of the bankrupt person's assets are given over to the bankruptcy trustee.

Question

Which of the following statements is not correct regarding Chapter 7 of the Bankruptcy Act?
A) ​The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible.
B) ​Chapter 7 provides for an immediate liquidation of assets.
C) ​Petitioners seeking to file Chapter 7 must pass a "means" test.
D) ​Most of the bankrupt person's assets are given over to the bankruptcy trustee.

Quizplus · Accepted Answer

Chapter 7 of the Bankruptcy Act does not require the debtor to submit a debt repayment plan to the court. This chapter provides for the liquidation of assets to pay off debt. Therefore, statement A is incorrect.

Which of the Following Statements Is Not Correct Regarding Chapter