Question

________ is a form of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is distributed to the creditors, and any unpaid debts are discharged.

Answer 1

LIQUIDATION. Property that is not obligated in the loan process is called non exempt property. When a debtor is distributing the cash to the creditors which came from the selling of a nonexempt property is called Liquidation bankruptcy and the debtor is relieved for the debts as they will be discharged.