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Voluntary petitions may be filed to initiate Chapter 7 or Chapter 11, but not Chapter 13, bankruptcies.

A) True
B) False

User Mpe
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1 Answer

4 votes

Final answer:

The claim that Chapter 13 bankruptcy does not allow for voluntary petitions is false. Voluntary petitions can be filed under Chapter 7, Chapter 11, and Chapter 13 bankruptcies.

Step-by-step explanation:

The statement that voluntary petitions may be filed to initiate Chapter 7 or Chapter 11 bankruptcies, but not Chapter 13, is false. All three chapters allow debtors to voluntarily petition for bankruptcy. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, Chapter 11 is known as reorganization bankruptcy for businesses, and Chapter 13 is a repayment plan bankruptcy for individuals with a regular income.

User Thomas Enebo
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