Which of the Following Is False Regarding Nondischargeable Debts Under

question 77

Multiple Choice

Which of the following is false regarding nondischargeable debts under a Chapter 7 bankruptcy filing?

• A) Nondischargeable debts include claims of willful or malicious conduct by the debtor that caused injury to another person or property.
• B) Nondischargeable debts include specific student loans, unless payment of the loans imposes undue hardship on the debtor.
• C) Nondischargeable debts include debts not discharged in previous bankruptcies.
• D) Nondischargeable debts include judgments against a debtor for claims resulting from the debtor's drinking and driving.
• E) Nondischargeable debts include claims for back taxes or government fines within four years of filing for bankruptcy.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.

Sales Commissions

Financial compensation awarded to sales personnel for meeting or exceeding sales targets, often a percentage of the sales they generate.

Materials

The physical substances or components needed to create a product or to carry out a service or process.

Price Inelastic

Describes a situation where the demand for a product or service is relatively unaffected by changes in its price.