4
QuizMultiple Choice

Lesson 3: Bankruptcy

Question 4 • [PERFIN] Personal Finance, Sem 2 (26-27)

Which of the following phrases best summarizes Chapter 13 bankruptcy?

Answer
A
discharge debt and keep property
B
discharge debt and liquidate assets
C
reorganize debt and keep property
D
reorganize debt and liquidate assets

Explanation

Chapter 13 bankruptcy lets an individual reorganize debts through a court-approved repayment plan, usually while keeping property. It differs from Chapter 7, which generally involves liquidating nonexempt assets to pay creditors. Therefore, “reorganize debt and keep property” is the best summary.

AI-written and checked against the verified answer.

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