You Are in Debt to Three Creditors for $200,000, and the Debt

question 71

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.