Respuesta :
Bankruptcy does not clear all the debt. Under Bankruptcy, not all debts can be discharged, however, and some are very difficult to discharged.
What is Bankruptcy?
Bankruptcy is a legal process in which individuals or other organizations who are unable to repay their debts to their creditors may seek relief from some or all of their debt.
In many places, a lawsuit was probably settled out of court, as the debtor was likely to pay.
Bankruptcy gives people in debt the opportunity to restart by closing or by restructuring. In both cases, the court may impose a fine on the debt.
Once the debt has been settled, the lender will no longer be able to take action against the debtor, such as trying to collect debt or take any security.
Thus, Option a. bankruptcy erases all of your debt is the correct answer.
To learn about bankruptcy, refer:
https://brainly.com/question/26392690
