Which One of the Following Statements About Bankruptcy Is False

question 48

Multiple Choice

Which one of the following statements about bankruptcy is false?

• A) Bankruptcy law is identical in every province of Canada.
• B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors.
• C) Bankruptcy law may allow a debtor to escape from having to pay his debts.
• D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them.
• E) A debtor who has been discharged from bankruptcy is released from his previous financial obligations.