Question

Sondra was expecting a shipment of food from one of her suppliers and it didn't come. When she called the supplier the phone was disconnected. Later Sondra read that the supplier had gone out of business because it couldn't pay its debts. The supplier likely declared Chapter __________ bankruptcy.

Answer 1

Answer: Chapter 7 bankruptcy

Explanation:

Sondra was expecting a shipment of food from one of her suppliers and it didn't come. When she called the supplier the phone was disconnected. Later Sondra read that the supplier had gone out of business because it couldn't pay its debts. The supplier likely declared Chapter 7 bankruptcy.

It should be noted that chapter 7 bankruptcy is a very common form of bankruptcy and does not involve filing of a repayment plan.