In a Chapter 7 bankruptcy, a debtor:
A. is required to draw up a petition listing all assets and liabilities.
B. does not have to pay a filing fee.
C. is absolved of alimony and child support payments.
D. does not have to repay educational loans.
its not b
The correct answer is A. In a Chapter 7 bankruptcy, the debtor is required to draw up a petition listing all assets and liabilities.
To arrive at this answer, let's understand the process of a Chapter 7 bankruptcy. Chapter 7 bankruptcy is a type of bankruptcy that allows individuals or businesses to liquidate their non-exempt assets to repay their debts. Here's a breakdown of the options:
A. In a Chapter 7 bankruptcy, the debtor is required to draw up a petition listing all their assets and liabilities. This is an essential step to provide a comprehensive overview of the debtor's financial situation.
B. Filing fees are required in bankruptcy cases, including Chapter 7. The amount of the filing fee varies, and the debtor is generally responsible for paying it. Therefore, option B - "does not have to pay a filing fee" - is incorrect.
C. Alimony and child support payments are generally not absolved in a Chapter 7 bankruptcy. These obligations are considered priority debts and are not discharged. Thus, option C - "is absolved of alimony and child support payments" - is incorrect.
D. Educational loans are generally not dischargeable in bankruptcy unless the debtor can establish "undue hardship" through a separate legal process called an adversary proceeding. Therefore, option D - "does not have to repay educational loans" - is incorrect.
In summary, option A - "is required to draw up a petition listing all assets and liabilities" - is the correct answer in a Chapter 7 bankruptcy case.