32 Comprehensive Questions
(Frequently Tested) with Verified
Answers Graded A+
CHAPTER 32 - Answer: Bankruptcy and Reorganization
Bankruptcy Law - Answer: is federal law; however, state laws regarding property and debts may
affect the bankruptcy proceeding.
Types of Bankruptcy Relief (3): - Answer: 1. Chapter 7
2. Chapter 11
3. Chapter 13
Chapter 7 Bankruptcy - Answer: Type of Bankruptcy:
i. Sale of debtor's assets by trustee and the distribution of money to creditors
The most familiar type of bankruptcy under chapter 7 - Answer: liquidation, sometimes called
straight bankruptcy
Liquidation - Answer: occurs when a debtor turns over all assets to a trustee, an individual who
takes over administration of the debtor's estate.
Chapter 11 Bankruptcy - Answer: Bankruptcy that:
Reorganization of the debtor's financial affairs under the supervision of the bankruptcy court.
Chapter 13 Bankruptcy - Answer: Bankruptcy that: