Question 15
Bankruptcy is a legal remedy that can discharge or reorganize certain debts, offering relief to people with unmanageable obligations. It’s not a moral failing — it’s a formal process with long-term credit consequences, potential collateral effects, and differences between chapter types (in some jurisdictions). Importantly, some obligations (recent tax debts, child support, many student loans) are often not dischargeable; secured debts tied to property (like a car or mortgage) may be reaffirmed or repossessed if you stop paying. Because bankruptcy affects future credit access and may have other legal ramifications, it’s usually a last-resort option after exploring counseling, negotiation, and restructuring. The question asks which general statement about bankruptcy is accurate at a conceptual level.
Which statement about personal bankruptcy is generally accurate (conceptual, not legal advice)?
Did You Also Know...
By Wise Wallet
Starting to save even modest amounts early takes advantage of compounded growth and can dramatically increase long-term wealth.