which statement best describes what happens when people declare bankruptcy?\nsome of their debts can be…
which statement best describes what happens when people declare bankruptcy?\nsome of their debts can be eliminated, and loan terms are renegotiated with lenders.\nall of their debts are eliminated, and they are given a fresh start.\nall of their debts are eliminated, but they have to sell their assets, such as their homes.\nsome of their debts can be eliminated, but they must agree not to take on more debt.
Answer
Brief Explanations:
When people declare bankruptcy, in some types like Chapter 7, certain unsecured debts can be discharged (eliminated), and in others like Chapter 13, loan - terms are renegotiated with lenders. Not all debts are eliminated (e.g., certain taxes, child support, most student loans are usually non - dischargeable). Also, selling assets is not always the case for all bankruptcy types, and there is no general rule that they must agree not to take on more debt.
Answer:
Some of their debts can be eliminated, and loan terms are renegotiated with lenders.