What Is the Test to Justify Voluntary Bankruptcy

question 77

Multiple Choice

What is the test to justify voluntary bankruptcy?

• A)It would be inconvenient for the debtor to pay debts
• B)The debtor would face financial hardship if he were to pay all debts due
• C)The debtor is more than 240 days behind in paying debts.
• D)The debtor is more than 120 days behind in paying debts.
• E)It would be impossible to pay debts which are due

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Definitions:

Base Year

A specific year against which economic growth is measured, serving as a standard of comparison for other years.

National Income

National Income is the total income earned by the residents of a country, including wages, profits, rents, and taxes, minus subsidies, over a certain period of time, often used to assess the economic health of a country.

Wages

Compensation provided to workers for their efforts or tasks, usually determined based on hours worked, daily rates, or the amount of work completed.

Salaries

Fixed regular payments, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.