Asked by
Donisha Williams
on Nov 10, 2024Verified
With few exceptions, once a bankrupt is discharged, there is no longer an obligation to pay back the unsecured creditors.
Unsecured Creditors
Creditors who have no specific claim over the assets of a debtor in case of default, placing them lower in priority for repayment.
Bankrupt
A person who has made an assignment in bankruptcy or been forced into bankruptcy through a court order obtained by a creditor, and who has not been discharged from bankruptcy.
Discharged
The release or termination of an obligation, such as debt or duty, under certain conditions.
- Understand the rights and obligations of secured and unsecured creditors under bankruptcy and insolvency laws.
Verified Answer
YI
Learning Objectives
- Understand the rights and obligations of secured and unsecured creditors under bankruptcy and insolvency laws.