In in Re Darby Darby Had Filed for Chapter 13

question 409

Multiple Choice

In In re Darby Darby had filed for Chapter 13 bankruptcy.The cable company refused to provide him service despite his promise of future payments.The appeals court held that:

• A)cable service is considered long-term,secured debt,so it would be provided on a regular payment basis or would be cut off
• B)cable service is a utility and,under the Bankruptcy Code,will be provided on a month-by-month payment basis
• C)cable service is a utility that must be provided without interruption even if the consumer cannot pay the bill in full monthly
• D)cable service is not a utility that had to be provided
• E)none of these

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Definitions:

Receivables Management

The process of managing the money owed to a business by its customers, aiming to ensure timely collection of outstanding invoices to maintain cash flow.

Accounts Receivable

Represents the money due to a company for goods or services that have been delivered or used but not yet paid for by customers.

DSO

DSO (Days Sales Outstanding) is a financial metric that calculates the average number of days it takes for a company to collect payments after a sale has been made.

Aging Schedule

An accounting table that shows the breakdown of receivables by age, helping manage and collect debts.