[jessanqi]

which of the following types of debtor are not eligible for relief under chapter 11 of bankruptcy code.

a. individuals.
b. railroads.
c. airlines.
d. stockbrokers.

The answer is B. this is from the appendix c: 2015 released aicpa questions.
I think D should be the answer, railroads can not file under chp 7, but can under 11, and stockbrokers and commodity brokers are not eligible for chapter 11 according to Wiley textbook.

I’m not sure which one is right, so can you please kindly help to confirm? thanks so much!!! 🙂

[nk522]

It is railroads because anyone who can be a debtor under Chapter 7 (except for a stockbroker), can be a debtor under Chapter 11, and given that Railroads may not file for bankruptcy under Chapter 7, that would apply for Chapter 11 as well.

[Skynet]

I call BS on that!

I owned several Railroads in Monopoly and was still able to file Bankruptcy.

[nk522]

@jessanqi Hey, I just found this problem, and this answer is Stockbrokers, not railroads…my mistake.

Which of the following types of debtor are not eligible for relief under Chapter 11 of the Bankruptcy Code?
a. Railroads.
b. Airlines.
c. Individuals.
d. Stockbrokers.

Explanation
Choice “d” is correct. Although both individuals and corporations are generally eligible for relief under Chapter 11, stockbrokers are specifically excluded.

[jessanqi]

Thank you so much for the verification 🙂 @nk522

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