Which of the following statements is not correct regarding straight bankruptcy or Chapter 7?
A)The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible.
B)Chapter 7 provides for an immediate liquidation of assets.
C)Petitioners seeking to file Chapter 7 must pass a "means" test.
D)Most of the bankrupt person's assets are given over to the bankruptcy trustee.

Question

Quizplus · Accepted Answer

The statement "The debtor submits a debt repayment plan to the court that is designed to repay as much of the debt as possible" is not correct regarding straight bankruptcy or Chapter 7. In Chapter 7, the debtor's assets are liquidated to pay off as much of their debt as possible, but there is no repayment plan involved.

Which of the Following Statements Is Not Correct Regarding Straight