It Is Possible to File for Chapter 7 Bankruptcy and Then

question 22

True/False

It is possible to file for Chapter 7 bankruptcy and then immediately file for bankruptcy again three months after the first bankruptcy is complete.

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Definitions:

Prior Period Adjustment

A correction of errors in financial statements that were made in previous periods, affecting retained earnings on the balance sheet.

Financial Statements

Official records that detail the financial activities and condition of a business, including income statement, balance sheet, and cash flow statement.

Retained Earnings

The portion of a business’s profits not distributed to shareholders, instead reinvested in the business or kept for reserve.

Cash Dividends

Payments made by a corporation to its shareholder members in the form of cash.