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 you become bankrupt, you are restricted from carrying on certain activities until you are discharged.
D) If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure, since you cannot begin it yourself.
E) The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claims.

Question

Quizplus · Accepted Answer

The statement "If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure, since you cannot begin it yourself" is false. An individual can file for bankruptcy voluntarily and does not need to wait for their creditors to initiate the procedure.

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