Under which process might you not have to pay off all your debts in full?(1 point) Responses Chapter 7 bankruptcy Chapter 7 bankruptcy both Chapter 7 and Chapter 13 bankruptcy both Chapter 7 and Chapter 13 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy neither Chapter 7 nor Chapter 13 bankruptcy
Chapter 7 bankruptcy
The process in which you might not have to pay off all your debts in full is Chapter 7 bankruptcy.
The process under which you might not have to pay off all your debts in full is Chapter 7 bankruptcy. To arrive at this answer, we need to understand what Chapter 7 and Chapter 13 bankruptcy entail.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal process that allows individuals or businesses to eliminate most of their debts by liquidating their non-exempt assets. This means that certain assets may be sold to pay off creditors, but many debts can be discharged entirely, meaning they do not have to be repaid.
On the other hand, Chapter 13 bankruptcy, also known as reorganization bankruptcy, is a process that allows individuals with a regular income to create a repayment plan to pay off their debts over a period of three to five years. Under this plan, a portion of the individual's income is used to repay their debts, and at the end of the plan, any remaining eligible debts are typically discharged.
Given this information, we can conclude that under Chapter 7 bankruptcy, an individual may not have to pay off all their debts in full, as many debts can be discharged entirely. Therefore, the correct answer is "Chapter 7 bankruptcy."