If a Person's Debts Are Subject to a Chapter 7

question 80

Multiple Choice

If a person's debts are subject to a Chapter 7 discharge, what does it mean?

• A) that he or she needs to repay only unsecured debts
• B) that he or she needs to repay only secured debts
• C) that he or she needs to pay his prepetition debts with his postpetition income
• D) that he or she need not repay the debt

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Definitions:

Variable Expenses

Variable expenses are costs that change in proportion with the level of activity or production volume, such as raw materials and direct labor.

Contribution Margin

The residual sum from sales income following the subtraction of variable costs.

Segment Margin

The contribution margin of a specific segment of a business, excluding common fixed costs, to assess the segment's financial performance independently.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or a product.