All of the Following Are True of the Bankruptcy Process

question 69

Multiple Choice

All of the following are true of the bankruptcy process except for

• A) The debtor firm may seek protection from its creditors by initiating bankruptcy or may be forced into bankruptcy by its creditors.
• B) When creditors file for bankruptcy on behalf of the debtor firm, the action is said to be involuntary bankruptcy.
• C) Once either a voluntary or involuntary petition is filed, the debtor firm is protected from any further legal action related to its debts until the bankruptcy proceedings are completed.
• D) The filing of a petition triggers an automatic stay even before the court accepts the request.
• E) An automatic stay suspends all judgments, collection activities, foreclosures, and repossessions of property by the creditors on any debt or claim that arose before the filing of the bankruptcy petition