Why Is Repayment Under Chapter 13 Distinct from Other Types

question 79

Multiple Choice

Why is repayment under Chapter 13 distinct from other types of relief?

• A)Because repayment plans are usually simpler and less expensive than Chapter 11 plans.
• B)Because Chapter 13 is an option only for municipalities,not individuals and businesses.
• C)Because Chapter 13 is the only type of relief available to debtors who are not insolvent.
• D)Because repayment is voluntary only.A debtor cannot be forced into a repayment plan.
• E)Because debts are discharged in Chapter 13 but not in other Chapters of bankruptcy.

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Definitions:

Liquidity Ratio

A financial metric used to determine an entity's ability to pay off its short-term obligations with its liquid assets.

Asset Management Ratio

Financial ratios that measure how effectively a company manages its assets to produce sales and maximize profitability.

Leverage Ratio

A financial metric indicating the level of debt relative to equity or assets, used to assess a company's ability to meet financial obligations.

Project Management

The application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters.