Which One of the Following Statements About Bankruptcy Is True

Multiple Choice

Which one of the following statements about bankruptcy is true?

A) Bankruptcy law is different in every province of Canada.
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly.
C) Bankruptcy law forces a debtor to pay all his debts, regardless of his financial position.
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them.
E) A debtor who has been discharged from bankruptcy is free from recovery proceedings from most of his unsecured creditors previous to bankruptcy.