Which One of the Following Statements About Bankruptcy Is True

question 28

Multiple Choice

Which one of the following statements about bankruptcy is true?

• A) Bankruptcy law is different in every province.
• B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly.
• C) Bankruptcy law forces a debtor to pay all his debts, regardless of his financial position.
• D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them.
• E) A debtor who has been discharged from bankruptcy is released from his previous financial obligations.

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