Filing for Bankruptcy Under Chapter 7 of the Bankruptcy Code

question 305

Multiple Choice

Filing for bankruptcy under Chapter 7 of the bankruptcy code results in ____ of debts.

• A) liquidation
• B) reorganization
• C) reduction
• D) reclaiming
• E) negating

---

Definitions:

Organization

A structured group of individuals working together to achieve common goals or objectives, often characterized by a formal hierarchy.

Issuing Securities

The process by which corporations or governments raise capital by selling stocks, bonds, or other financial instruments to investors.

Raise Capital

The act of obtaining funds to finance operations, growth, or investments of a business.

New Corporation

A business entity that has recently been formed and incorporated, beginning its operations and legal existence.