A Chapter 13 Debtor Must Begin Making the Instalment Payments

question 67

Multiple Choice

A Chapter 13 debtor must begin making the instalment payments proposed in her plan:

• A) within 30 days after the plan is filed.
• B) one week after the plan is approved by the creditors.
• C) within 60 days after the plan is approved by the court.
• D) within one week of the formal submission to the trustee.

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Definitions:

Nonowner Transactions

Financial transactions that affect the balance sheet but do not involve changes in ownership equity.

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.

Percentage-Of-Completion

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the work completed to date.

Cost Recovery

The process of recovering the cost of an investment, expense or other outlay over time.