The laws dealing with bankruptcy provide that the assets and contracts of a bankrupt person or business be:
A) sold to the highest bidder.
B) assigned to the trustee in bankruptcy.
C) held by the court pursuant to a decree.
D) transferred to the largest creditor.

Question

Quizplus · Accepted Answer

The bankruptcy laws require that the assets and contracts of a bankrupt person or business be assigned to the trustee in bankruptcy. The trustee is then responsible for administering the assets and distributing the proceeds to creditors according to certain priorities set out in the law. This process ensures that the assets are distributed fairly and efficiently, and that creditors have a chance to recover as much of their debt as possible.

The Laws Dealing with Bankruptcy Provide That the Assets and Contracts