Question

Andy’s business is not able to pay its debts, and the prospects for its finances to improve are slim. Andy decides not to continue the business. In this case, Andy should file a voluntary petition for which type of bankruptcy?

a. Chapter 7.
b. Chapter 11.
c. Chapter 13.
d. Chapter 12.

Answer 1

Answer: a. Chapter 7

Step-by-step explanation:

Chapter 7 bankruptcy is a type of bankruptcy that allows trustee to sell a few of one's property in other to repay creditors. It also allows the cancelation of some debt. The chapter 7 bankruptcy is also known as straight or liquidation bankruptcy and it is the most commonly used especially by individuals.