Which of the following allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?
A)Assignment in bankruptcy
B)Frequent payment plan
C)Consumer proposal
D)A and B are correct
E)A, B and C are correct

Question

Quizplus · Accepted Answer

The option that allows a debtor with a regular income to extinguish their debts from future earnings or property over a period of time is a consumer proposal. This is a formal, legally binding agreement between the debtor and their creditors, where the debtor proposes to pay a portion of their debts over a set period of time. It is an alternative to declaring bankruptcy and can offer more flexibility in terms of repayment terms and keeping some assets. Option A, assignment in bankruptcy, involves the debtor assigning all their assets to a trustee who will then distribute the proceeds to their creditors. Option B, frequent payment plan, is not a legal term and it is unclear what it refers to.

Which of the Following Allows a Debtor with a Regular