Which of the Following Statements About Chapter 7 Liquidations Is

question 40

Multiple Choice

Which of the following statements about Chapter 7 liquidations is true?

• A)The debtor must disclose all of the property she owns and surrender this bankruptcy estate to the bankruptcy trustee.
• B)The trustee takes all of the debtor's property and administers,liquidates,and distributes it.
• C)Only individuals can file under Chapter 7.
• D)If the bankrupt person follows all court orders,she is usually given a discharge,regardless of whether she was honest in her business transactions or not.

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Definitions:

LLC

Abbreviation for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Transferable Interest

The portion of a member's ownership in a limited liability company (LLC) that can be transferred or sold to other parties, typically including the right to receive financial distributions.

Default

Failure to fulfill a legal obligation, especially failure to pay a debt on time.

Profit Share

This refers to a portion of a company's profits allocated to its employees, shareholders, or partners as a form of incentive or bonus.