Answer (B) is correct . A general discharge of most debts is provided a person under Chapter 7. Certain entities are not eligible, including railroads, insurance companies, banks, credit unions, and savings and loan associations. Liquidation and discharge under Chapter 7 are not restricted to cases in which Chapter 11 reorganization would not be successful.
Answer (A) is incorrect because Partnerships and corporations do not receive a general discharge under Chapter 7. They are simply liquidated.
Answer (C) is incorrect because Insurance companies are ineligible to file under Chapter 7.
Answer (D) is incorrect because Destroying information can result in denial of general discharge. Only if it is justified, e.g., accidental and not to defraud creditors, might it not result in denial of discharge.
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