Which One of the Following Statements About Bankruptcy Is False

Multiple Choice

Which one of the following statements about bankruptcy is false?

A) Bankruptcy law is identical in every province of Canada.
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors.
C) Bankruptcy law may allow a debtor to escape from having to pay his debts.
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 released from his previous financial obligations.