Charlton Files a Petition in Bankruptcy in a Liquidation Proceeding

question 66

Multiple Choice

Charlton files a petition in bankruptcy in a liquidation proceeding. If the court administers the means test and concludes that Charlton is abusing the bankruptcy process by filing for a liquidation, most likely

• A) Charlton will be forced to file for relief through an individual repayment plan.
• B) the court will discharge Charlton's debts.
• C) the court will distribute Charlton's property to Charlton's creditors.
• D) the court will issue an automatic stay against any actions by Charlton's creditors.

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Definitions:

Establishment Clause

A provision in the First Amendment of the U.S. Constitution that prohibits the government from establishing an official religion or favoring one religion over another.

Secular Purpose

Refers to a non-religious or non-spiritual objective or function, often mentioned in the context of laws or policies to ensure neutrality.

Government Entanglement

A situation where the actions, policies, or laws of a government are deeply involved or intertwined with a private entity or religious organization, raising constitutional concerns.

Dormant Commerce Clause

The dormant commerce clause refers to the implicit restriction in the U.S. Constitution that prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce.