Which of the Following Is NOT Required for a Reaffirmation

question 88

Multiple Choice

Which of the following is NOT required for a reaffirmation of debt?

• A) The reaffirmation agreement is made after the debt is discharged
• B) The reaffirmation agreement is made before the debt is discharged
• C) The debtor must be able to cancel the agreement
• D) The agreement must contain explicit information regarding the time period in which the debtor can cancel the agreement.
• E) The agreement should contain a statement notifying the creditor that the law does not require the agreement.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Debt-To-Equity Ratio

A ratio that demonstrates the mix of shareholder equity versus debt financing employed to fund a company's assets.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Working Capital

The difference between current assets and current liabilities, indicating the short-term financial health of a business.