Asked by

Donisha Williams
on Nov 10, 2024

verifed

Verified

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.
verifed

Verified Answer

YI
Yamini InchunkarNov 12, 2024
Final Answer:
Get Full Answer