Question

Al files for bankruptcy. Al has been making loan payments to his company's credit union through payroll deductions. After being notified of the bankruptcy, his employer continues to deduct the loan payments from his paychecks. Al's employer : a. is in violation of the bankruptcy code.

b. is required to continue taking the deductions.
c. can continue taking the deductions until the loan is repaid.
d. can continue taking the deductions for 180 days.

Answer 1

Answer: Option A - Violation of the bankruptcy code

Step-by-step explanation:

Bankruptcy code is an act made by different parliaments across the globe. purposely to govern bankruptcy and insolvency related laws. Countries practising this act/code are India, Canada, China, USA etc.