You Are in Debt to Three Creditors for $200,000, and the Debt

question 77

Multiple Choice

You are in debt to three creditors for $200,000, and the debt is increasing because you are not able to meet your monthly financial obligations. Which of the following is false with regard to your situation?

• A) It is illegal for you to transfer assets to a spouse or friend to shield them from your creditors
• B) If you become bankrupt, your assets are conveyed to a trustee in bankruptcy who deals with them for the benefit of your creditors.
• C) If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure; you cannot begin it yourself.
• D) If you become bankrupt, you are restricted from carrying certain activities until you are discharged.
• E) The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claim

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Definitions:

Bed Time

Bed Time signifies the regular time at which an individual goes to bed to sleep.

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, characterized by its psychoactive and intoxicating effects.

Reticular Activating System

A network of neurons in the brainstem that regulates wakefulness and sleep-wake transitions.

Sedatives

Drugs that have a calming effect, reduce nervousness, and help induce sleep by depressing the central nervous system.