Understanding Bankruptcy

What is the primary purpose of a 'Petition for Bankruptcy'?

• To apply for a loan

• To declare financial insolvency

• To start a new business

• To pay off debts.

Fill in the blank: A 'Petition for Bankruptcy' is typically filed when an individual or business is unable to ______.

• A) earn profits

• B) manage employees

• C) pay debts

• D) expand operations

Which of the following is a type of debt?

• Secured Debt

• Unsecured Debt

• Both A and B

• None of the above

Debt to income ratio is used to analyze ______.

• Financial stability

• Credit score

• Income level

• Spending habits

Which of the following is a legal process involving a person or business that is unable to repay outstanding debts?

• Debt

• Bankruptcy

• Avoiding Debt

• Savings

To manage finances effectively, one should focus on ______.

• Increasing Debt

• Bankruptcy

• Avoiding Debt

• Ignoring Debt

What is the primary purpose of a 'Petition for Bankruptcy'?

• To apply for a loan

• To declare inability to pay debts

• To start a new business

• To invest in stocks

Fill in the blank: A 'Petition for Bankruptcy' is typically filed when an individual or business is unable to ______.

• A) earn profits

• B) pay debts

• C) hire employees

• D) expand operations

What is a debt?

• A sum of money due to another

• An obligation to deliver goods

• A cause of action in a lawsuit

• All of the above.

Debt is an obligation to deliver particular goods or perform certain acts according to an agreement, such as ______.

• paying taxes

• returning a favor

• buying groceries

• attending a meeting