which statement best describes what happens when people declare bankruptcy?\no some of their debts can be…
which statement best describes what happens when people declare bankruptcy?\no some of their debts can be eliminated, and loan terms are renegotiated with lenders.\no all of their debts are eliminated, and they are given a fresh start.\no all of their debts are eliminated, but they have to sell their assets, such as their homes.\no some 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 debts can be discharged. But not all debts are eliminated (e.g., child - support, most student loans). Loan terms may not always be renegotiated, and they don't have to agree not to take on more debt in all cases. Selling assets is not always required either.
Answer:
Some of their debts can be eliminated, and loan terms are renegotiated with lenders.