By Filing A[n] _____________ Petition Under Chapter 7, Creditors Can

question 8

Multiple Choice

By filing a[n] _____________ petition under Chapter 7, creditors can attempt to force a debtor who is not paying debts as they become due into bankruptcy.

• A) Voluntary
• B) Involuntary
• C) Complaint
• D) Accusatory
• E) Dispute

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Definitions:

Nonexempt Assets

Assets that can be seized by creditors under bankruptcy proceedings, as opposed to those protected or exempt.

Involuntary Petition

A legal process initiated by creditors requesting the bankruptcy court to declare a debtor bankrupt, typically utilized when the debtor is not paying outstanding debts.

Chapter 7

A provision of the U.S. Bankruptcy Code that involves the liquidation of a debtor's non-exempt assets to pay off creditors.

Consumer Debt

Consumer debt is a type of financial obligation that arises from the purchase of goods that are used for personal, family, or household purposes.