Which of the Following Statements Is True of the Exemptions

question 46

Multiple Choice

Which of the following statements is true of the exemptions available to bankrupt debtors?

• A) They can elect to use the set of exemptions provided by either the state or federal bankruptcy law.
• B) They can elect to keep some items exempted under the state law and other items under the federal law.
• C) The set of exemptions is picked by the creditor's committee or the trustee.
• D) The debtor can pick the exemptions of the place where the debtor was domiciled for 100 days before filing of the petition.

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Definitions:

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.

Cash Balances

The total amount of cash in a company's account at any given time, which can be used for transactions or as a reserve.

Receivables Financing

A form of financing where a company uses its outstanding invoices or receivables as collateral to secure a loan or advance.