- 1 Marks
Question
A debtor is said to be bankrupt when
A. A creditor obtains a final court order against him
B. A court declares that he is solvent
C. He pays his debts
D. He promises to pay his creditors
E. The creditors do not trust him
Answer
A
Explanation:
The correct answer is “A creditor obtains a final court order against him.” A debtor is declared bankrupt when a court issues a final order confirming that the debtor is unable to meet their financial obligations, following a petition by creditors
- Tags: Bankruptcy, Creditor's Rights, Insolvency Law, Multiple Choice
- Level: Level 1
- Topic: Law Relating to Banking
- Series: NOV 2013
- Uploader: Theophilus