Asked by Ninh Thi Thuy Trang on Apr 26, 2024
Verified
Which Chapter of the Bankruptcy Code covers liquidation?
A) Chapter 7
B) Chapter 13
C) Chapter 5
D) Chapter 11
Bankruptcy Code
A federal code consisting of statutes governing the process of legal insolvency in the United States, designed to resolve cases of individuals or entities that can no longer meet their financial obligations.
Liquidation
The process of converting assets into cash, often associated with dissolving a business and distributing its assets to claimants.
- Differentiate between various chapters of the Bankruptcy Code.
Verified Answer
SB
Sevina BravoApr 28, 2024
Final Answer :
A
Explanation :
A liquidation proceeding,traditionally called straight bankruptcy,is brought under Chapter 7 of the Bankruptcy Code.
Learning Objectives
- Differentiate between various chapters of the Bankruptcy Code.
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