Which of the Following Is True of a Chapter 13

question 1

Multiple Choice

Which of the following is true of a Chapter 13 petition?

• A) It can be filed by all individual debtors, irrespective of their income.
• B) The petitioner need not demand an extension or composition.
• C) To qualify for Chapter 13, the debts must primarily be consumer debt.
• D) Creditors can file a Chapter 13 petition claiming payment from a debtor.

---

Definitions:

Inflation Rate

The uptick in percentage of goods and services' prices in an economy throughout a certain duration.

Annual Income

The total amount of income earned over a year from all sources including wages, salaries, bonuses, dividends, and interest.

Nominal Interest Rate

The rate of interest charged on a loan without taking the inflation rate into account.

Real Interest Rate

It represents the rate of interest an investor expects to receive after allowing for inflation, fundamentally indicating the true return on an investment.