Question

Jason's consumer debt is beyond what he can now afford to pay, as he is having difficulty making the minimum payments. The credit-card companies are calling daily asking him when he is going to pay. Which of the following goals of bankruptcy is applicable to Jason's situation?
a. To ensure equitable treatment of creditors who are competing for a debtor's assets.
b. To avoid paying any debts.
c. To balance the rights of the debtor and creditor.
d. To protect the debtor by giving him a fresh start without creditors' claims.

Answer 1

Answer:

D: To protect the debtor by giving him a fresh start without creditor's claims,

Explanation:

The primary goal of bankruptcy law is to provide a fresh start to the life of a citizen who faces economic hardship which resulted in bad debt. Otherwise such person could resort to suicidal thoughts or depression.