Which of the Following Is True About Exemptions for an Individual

question 26

Multiple Choice

Which of the following is true about exemptions for an individual in a Chapter 7 bankruptcy?

• A) The federal statutory exemptions apply in all cases.
• B) Exemptions are always determined by state law.
• C) The federal law allows states to set their own exemptions,which can be either mandatory or optional,in place of the federal exemptions.
• D) The state exemptions,where present,generally allow the debtor to keep fewer assets than under federal law.

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Definitions:

Unstable

Describes a situation, structure, or system that is not firmly fixed or is likely to change or fail suddenly.

Business Climate

The general economic environment and conditions that affect the operation and growth of businesses within a specific area.

Entities

Individuals, organizations, or businesses that exist as distinct and independent units, often for legal or business purposes.

Organization

An arranged group of people working together towards common goals, typically structured and managed to meet a need or to pursue collective goals.