If a Creditor Owns a Debt That Is Provable and Nondischargeable

question 44

Multiple Choice

If a creditor owns a debt that is provable and nondischargeable, he or she _____.

• A) may participate in the distribution of the debtor's estate
• B) can recover only the money provided by the bankrupt's discharge
• C) must not enter into any voluntary agreement with the debtor for discharge of the debt
• D) needs court approval for reaffirmation of loans

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Definitions:

Long-Run Equilibrium

A state in a market where all firms are making normal profits, and there is no incentive for firms to enter or exit the industry.

Plaster

A building material used for coating walls and ceilings, which hardens after application.

Labor

The human effort, both physical and mental, that is used to produce goods and services.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual rate in the context of loans or savings.