An Automatic Stay

question 43

Multiple Choice

An automatic stay:

• A) arises only upon the filing of a voluntary petition.
• B) prevents any further interest from accruing on a debtor's outstanding debts.
• C) prevents creditors from taking action outside of the bankruptcy proceeding against a debtor.
• D) ends if a debtor attempts to incur additional debt after a petition has been filed.

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Definitions:

Foreign Tax Credit

A tax credit that offsets the double taxation of income earned abroad, allowing taxpayers to credit foreign taxes paid against their U.S. tax liability.

Taxable Income

The amount of an individual's or corporation's income that is used to determine how much tax is owed to the federal government.

Foreign Income Taxes

Taxes paid to a foreign government for income earned in the foreign country.

Child Tax Credit

A credit aimed at helping families offset some of the costs of raising children by reducing their tax liability.