Chapter 7 of the Bankruptcy Act Is Designed to Do

question 9

Multiple Choice

Chapter 7 of the Bankruptcy Act is designed to do which of the following?

• A) Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm.
• B) Establish the rules of reorganization for firms with projected cash flows that eventually will be sufficient to meet debt payments.
• C) Allow insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt.
• D) Answers a and b above.
• E) Answers a and c above.

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