Question

The U.S. Bankruptcy code : is which one? A . restores all the losses incurred by the borrower . B. results in the loss of all the assets of the debtor. C. requires the debtor to pay back the debt in the future. D is also referred to as " straight bankruptcy"

Answer 1

The U.S. Bankruptcy Code does not restore all the losses incurred by the borrower. Instead, it is primarily designed to provide a legal framework for managing and resolving financial difficulties. Option C is closer to the purpose of the bankruptcy code, as it involves reorganizing or discharging debts, and Option D is correct as "straight bankruptcy" is another term for Chapter 7 bankruptcy, which typically results in the liquidation of assets to pay off debts. So, the correct option is D.