Describe the features of a Chapter 7 personal bankruptcy.
What will be an ideal response?
A Chapter 7 bankruptcy (also called a straight bankruptcy) is a liquidation form of bankruptcy. In this type of bankruptcy proceeding, the debtor is permitted to keep a substantial portion of his or her assets (exempt assets), the debtor's nonexempt property is sold for cash and the cash is distributed to the creditors, and any of the debtor's unpaid debts are discharged. The debtor's future income, even if he or she becomes rich, cannot be reached to pay the discharged debt. Most Chapter 7 bankruptcy petitions are voluntarily filed by individuals.
You might also like to view...
How will the payee of the promissory note record the note on its books?
a. The promissory note will be recorded as an asset. b. The promissory note will be recorded as a liability. c. The promissory note will be recorded as revenue. d. The promissory note will be recorded as an expense.
All of the data for the income statement are obtained from the Income Statement columns of the work sheet
Indicate whether the statement is true or false
In 2001, Nike admitted that it used child labor to produce its expensive sportswear products while paying the children just pennies a day. In doing so, Nike ______.
A. deprived some children of the opportunity to have a childhood as in developed economies B. provided society with opportunities to have a more educated population C. created new consumers with the ability to purchase products and services D. showed it was being socially responsible
Which of the following is an example of a controllable variable to an independent family-oriented shoe retailer?
a. consumer acceptance of the store's above-average pricing strategy b. development and implementation of a cheerful, friendly store atmosphere c. competition from a new family-oriented shoe chain with below-average pricing d. high seasonality during the week before school, at Easter, and before camp time periods