tích of the following best describes Chapter 7 bankruptcy? 1. Chapter 7 bankruptcy invalves reorganizing debts to pay over time 2. Chapter 7 bankruptcy Is only for businesses. 3. Chapter 7 bankruptcy involves liquidating assets to pay creditors. 4. Chapter 7 bankruptcy forgives all types of debts, including student loan

The correct answer is **3. Chapter 7 bankruptcy involves liquidating assets to pay creditors.**<br /><br />Here's why the other options are incorrect:<br /><br />* **1. Chapter 7 bankruptcy involves reorganizing debts to pay over time:** This describes Chapter 13 bankruptcy, not Chapter 7. Chapter 13 involves creating a repayment plan over a period of three to five years.<br />* **2. Chapter 7 bankruptcy Is only for businesses:** Chapter 7 bankruptcy is available to both individuals and businesses.<br />* **4. Chapter 7 bankruptcy forgives all types of debts, including student loans:** While Chapter 7 discharges many types of debt, some debts are typically not dischargeable, including most student loans, some taxes, child support, and alimony.<br />