Confirmation of a Plan for Reorganization Under Chapter 13 May

question 57

Multiple Choice

Confirmation of a plan for reorganization under Chapter 13 may be given only if:

• A) the plan complies with applicable law and is given in good faith.
• B) the plan provides for payments longer than three years.
• C) the debtor remains in possession of the estate.
• D) all of the creditors agree to accept it.

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Definitions:

Asset Improvements

Expenditures made to increase the service life, operating efficiency, or productive capacity of an asset.

Ordinary Maintenance

Routine upkeep and repairs to keep equipment and facilities in working order, as opposed to major renovations or upgrades.

Accumulated Depreciation

The total amount by which an asset's value has been written down over time to reflect wear, tear, or obsolescence.

Trade-In Allowance

The amount credited to the buyer by a seller for the value of a traded item, reducing the cost of the new purchase.