Which of the following is true of Chapter 7 liquidation?
A) The debtor is not permitted to keep any of his or her assets.
B) The 2005 bankruptcy act has eased the process of applying for a Chapter 7 bankruptcy.
C) The debtor's future income cannot be reached to pay the discharged debt.
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter.

Question

Quizplus · Accepted Answer

The debtor's future income is generally not accessible for paying off the debts that are discharged under Chapter 7 bankruptcy. This type of bankruptcy involves liquidating the debtor's non-exempt assets to pay off creditors, but once the bankruptcy process is complete and debts are discharged, the debtor's future income is typically not subject to claims by the creditors of the discharged debts.

Which of the Following Is True of Chapter 7 Liquidation