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

Question

Quizplus · Accepted Answer

It is not necessary to ask your creditors to begin the bankruptcy procedure, as you can begin it yourself by filing for bankruptcy under the Bankruptcy and Insolvency Act.

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