In a Voluntary Settlement, One Group of Creditors Having Claims

question 122

Multiple Choice

In a voluntary settlement, one group of creditors having claims of $1,000,000 will be immediately paid 95 cents on the dollar. The remainder of the creditors will postpone payment an additional 60 days. This is an example of

• A) a composition.
• B) a combination of a composition and extension.
• C) an extension.
• D) a liquidation.

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Definitions:

Catastrophic Thinking

An irrational thought process leading an individual to believe that something is far worse than it actually is, often seen in anxiety and depression.

Bodily Sensations

Physical feelings or perceptions resulting from the condition of the body or its parts.

Hypersensitive Fight-Or-Flight

An exaggerated response to stress or perceived threats, where the body's natural fight-or-flight response is more easily triggered or more intense than normal.

Biological Vulnerability

An inherent sensitivity to psychological disorders due to genetic or physiological factors.