You Are in Debt to Three Creditors for $200,000, and the Debt

question 72

Multiple Choice

You are in debt to three creditors for $200,000, and the debt is increasing because you are not able to meet your monthly financial obligations. Which of the following is false with regard to your situation?

• A) It is illegal for you to transfer assets to a spouse or friend to shield them from your creditors.
• B) If you become bankrupt, your assets are conveyed to a trustee in bankruptcy who deals with them for the benefit of your creditors.
• C) If you become bankrupt, you are restricted from carrying on certain activities until you are discharged.
• D) If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure, since you cannot begin it yourself.
• E) The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claims.

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Definitions:

Type B

Describes a personality type that is generally laid back, less stress-prone, and more adaptable to change compared to Type A personality.

Type C

A personality style suggested to be correlated with increased susceptibility to illness, characterized by passivity and difficulty in expressing emotions.

Problem-focused Coping

Refers to strategies aimed directly at tackling the cause of stress, through actions that address the problem causing the distress.

Proactive Coping

Strategies employed to anticipate potential stressors and act in advance to prevent them or mitigate their effects.