James Callaghan Has Worked Full-Time for BC Metals for Four

question 46

Multiple Choice

James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so?

• A) because the employer expects him to work until retirement
• B) because the benefits are vested
• C) because the union would strike if they are revoked
• D) because the benefits are defined

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Definitions:

Creditors

Individuals or entities to whom money is owed by a debtor or borrower.

Automatic Stay

After bankruptcy has been filed, a moratorium during which creditors cannot bring or continue action against the debtor or his or her property.

Chapter 7

A provision under the United States Bankruptcy Code dealing with the process of liquidation, where a debtor's assets are sold to pay off creditors.

Order of Relief

An order stating that bankruptcy proceedings can continue.