Bankruptcy Under Chapter 13 Differs from Chapter 11 in That

question 10

Multiple Choice

Bankruptcy under Chapter 13 differs from Chapter 11 in that:

• A) an individual cannot use Chapter 11.
• B) a corporation cannot use Chapter 13.
• C) Chapter 11 cannot be instituted by involuntary petition.
• D) Chapter 13 requires unsecured debts to be less than $100,000.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower defaults.

Collateral

Property or assets pledged by a borrower to secure a loan, subject to seizure on default.

Third-Party Beneficiary

A person who is not a party to a contract but who has the right to enforce it because the parties to the contract made the contract with the intent to benefit him.

Implied

Something not explicitly stated but understood to be included or involved through indirect indications or logical inference.