Chapter 7 of the Bankruptcy Act Is Designed to Do

Multiple Choice

Chapter 7 of the Bankruptcy Act is designed to do all of the following EXCEPT:

A) Provides safeguards against the withdrawal of assets by the owners of the bankrupt firm.
B) Allows insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt.
C) Provides for an equitable distribution of the assets among the creditors.
D) Details the procedures to be followed when a firm is liquidated.
E) Establishes the rules of reorganization for firms with projected cash flows that eventually will be sufficient to meet debt payments.