which statement best describes what happens when people declare bankruptcy? some of their debts can be…

which statement best describes what happens when people declare bankruptcy? some of their debts can be eliminated, and loan terms are renegotiated with lenders. all of their debts are eliminated, and they are given a fresh start. all of their debts are eliminated, but they have to sell their assets, such as their homes. some of their debts can be eliminated, but they must agree not to take on more debt.

which statement best describes what happens when people declare bankruptcy? some of their debts can be eliminated, and loan terms are renegotiated with lenders. all of their debts are eliminated, and they are given a fresh start. all of their debts are eliminated, but they have to sell their assets, such as their homes. 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 unsecured debts can be discharged, and in others like Chapter 13, loan - repayment terms are renegotiated with lenders. It's not true that all debts are eliminated in most cases, and there's no general requirement to not take on more debt after bankruptcy. Also, selling assets isn't always the case for all types of bankruptcy.

Answer:

Some of their debts can be eliminated, and loan terms are renegotiated with lenders.