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:

Develop Hobbies

The process of identifying and engaging in leisure activities for enjoyment, relaxation, or learning new skills.

Reduce Stress

Strategies or actions taken to decrease tension, anxiety, or the negative impact of stress on an individual's life.

Electronic Junk Mail

Unsolicited and often unwanted emails, typically sent in bulk for advertising purposes, also known as spam.

Junk Mail

Unsolicited or unwanted email messages, typically of a commercial nature, sent to a large number of recipients.