Asked by Celina Singh on May 25, 2024
Verified
The two general roles of bankruptcy include:
A) protections of banks and protection of those who supply credit.
B) to relieve debtors of all debt and to give financial institutions an opportunity to recoup losses.
C) allowing the IRS to receive outstanding tax liabilities and for debtors to clear the slate with the IRS.
D) providing protection to creditors and provide opportunities to debtors to gain a fresh financial start.
E) to clear state dockets of creditor claims and to help debtors receive a fresh start financially.
Creditors
Individuals or institutions that lend money or extend credit, and are owed repayment by debtors.
Debtors
Persons or entities that owe money to another individual or entity, typically as a result of borrowing funds.
Bankruptcy
A legal proceeding involving a person or business that is unable to repay outstanding debts.
- Understand the safeguarding role that bankruptcy plays for borrowers and its effects on lenders.
Verified Answer
AP
Ashman PreetMay 28, 2024
Final Answer :
D
Explanation :
The two general roles of bankruptcy are to provide protection to creditors by ensuring an orderly process for dealing with debtor's assets and liabilities, and to offer debtors an opportunity to gain a fresh financial start by discharging certain debts and reorganizing their financial affairs.
Learning Objectives
- Understand the safeguarding role that bankruptcy plays for borrowers and its effects on lenders.
Related questions
Although the Courts Usually Permit Bankrupt Firms to Continue in ...
If a Debtor Defaults,what Type of Court Order Does the ...
Once a Voluntary Liquidation Proceeding Under Chapter 7 Is Filed,the ...
If a Buyer Purchases Chattel Paper or an Instrument in ...
________ Is a Writing That Demonstrates a Right to Payment ...