In a Reorganization Petition Under Chapter 11 of the Bankruptcy

question 61

Multiple Choice

In a reorganization petition under Chapter 11 of the Bankruptcy Code,if any particular class of creditors rejects the reorganization plan,the Court will:

• A) disallow the claims of the rejecting creditors.
• B) force the trustee to renegotiate with the rejecting creditors so that a compromise maybe reached at.
• C) order the debtor to file bankruptcy under Chapter 13.
• D) force the rejecting creditors to accept the reorganization plan,if the plan is fair and equitable towards the rejecting creditors.

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Definitions:

Marginal Tax Rate

The proportion of your earnings that is taxed according to the tax bracket(s) for which you are eligible.

Straight-Line Depreciation

A method of calculating the depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.

Cash Expenses

Outlays of cash during a given period for direct charges such as wages, rent, and utilities.