Back
0

Filing for Bankruptcy

Description: This quiz will test your knowledge on the topic of Filing for Bankruptcy.
Number of Questions: 15
Created by:
Tags: bankruptcy law finance
Start the Quiz
Attempted 0/15 Correct 0 Score 0
‹
›

What is the main purpose of filing for bankruptcy?

  1. To get rid of all debts

  2. To protect assets from creditors

  3. To reorganize debts and finances

  4. To avoid paying taxes

Show answer
Correct Option: C
Explanation:

Filing for bankruptcy allows individuals or businesses to reorganize their debts and finances in order to pay back creditors over time.

Which type of bankruptcy is typically used by individuals?

  1. Chapter 7

  2. Chapter 11

  3. Chapter 12

  4. Chapter 13

Show answer
Correct Option: D
Explanation:

Chapter 13 bankruptcy is commonly used by individuals to reorganize their debts and create a repayment plan.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

  1. Chapter 7 liquidates assets, while Chapter 13 reorganizes debts

  2. Chapter 7 is for businesses, while Chapter 13 is for individuals

  3. Chapter 7 requires a repayment plan, while Chapter 13 does not

  4. Chapter 7 is more expensive than Chapter 13

Show answer
Correct Option: A
Explanation:

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay creditors, while Chapter 13 allows individuals to keep their assets and create a repayment plan.

What are some of the eligibility requirements for filing for Chapter 7 bankruptcy?

  1. Must have a regular income

  2. Must have a certain amount of debt

  3. Must have filed taxes for the past two years

  4. All of the above

Show answer
Correct Option: D
Explanation:

To be eligible for Chapter 7 bankruptcy, individuals must meet certain income and debt requirements, as well as have filed taxes for the past two years.

What is the means test in bankruptcy?

  1. A test to determine if a debtor is eligible for Chapter 7 bankruptcy

  2. A test to determine how much debt a debtor can discharge

  3. A test to determine if a debtor has enough assets to repay creditors

  4. A test to determine if a debtor has filed taxes for the past two years

Show answer
Correct Option: A
Explanation:

The means test is used to determine if a debtor's income and expenses meet certain criteria to qualify for Chapter 7 bankruptcy.

What is the automatic stay in bankruptcy?

  1. A court order that stops creditors from contacting a debtor

  2. A court order that stops creditors from taking legal action against a debtor

  3. A court order that stops creditors from seizing a debtor's assets

  4. All of the above

Show answer
Correct Option: D
Explanation:

The automatic stay in bankruptcy is a court order that prevents creditors from contacting, taking legal action against, or seizing the assets of a debtor.

What is a discharge in bankruptcy?

  1. A court order that releases a debtor from personal liability for certain debts

  2. A court order that allows a debtor to keep their assets

  3. A court order that stops creditors from contacting a debtor

  4. A court order that stops creditors from taking legal action against a debtor

Show answer
Correct Option: A
Explanation:

A discharge in bankruptcy is a court order that releases a debtor from personal liability for certain debts, allowing them to start over financially.

What are some of the consequences of filing for bankruptcy?

  1. It can damage a credit score

  2. It can make it difficult to get credit in the future

  3. It can affect employment opportunities

  4. All of the above

Show answer
Correct Option: D
Explanation:

Filing for bankruptcy can have negative consequences, such as damaging a credit score, making it difficult to get credit in the future, and potentially affecting employment opportunities.

What is the difference between a secured debt and an unsecured debt?

  1. A secured debt is backed by collateral, while an unsecured debt is not

  2. A secured debt has a higher interest rate than an unsecured debt

  3. A secured debt is easier to discharge in bankruptcy than an unsecured debt

  4. A secured debt is more likely to be included in a Chapter 13 repayment plan

Show answer
Correct Option: A
Explanation:

A secured debt is a loan that is backed by collateral, such as a car or a house, while an unsecured debt is a loan that is not backed by collateral.

What is a reaffirmation agreement in bankruptcy?

  1. An agreement between a debtor and a creditor to reaffirm a debt after bankruptcy

  2. An agreement between a debtor and a creditor to reduce the amount of a debt after bankruptcy

  3. An agreement between a debtor and a creditor to extend the repayment period of a debt after bankruptcy

  4. An agreement between a debtor and a creditor to discharge a debt after bankruptcy

Show answer
Correct Option: A
Explanation:

A reaffirmation agreement is a contract between a debtor and a creditor in which the debtor agrees to repay a debt that was discharged in bankruptcy.

What is a Chapter 11 bankruptcy?

  1. A type of bankruptcy used by businesses to reorganize their debts

  2. A type of bankruptcy used by individuals to reorganize their debts

  3. A type of bankruptcy used by businesses to liquidate their assets

  4. A type of bankruptcy used by individuals to liquidate their assets

Show answer
Correct Option: A
Explanation:

Chapter 11 bankruptcy is a type of bankruptcy that allows businesses to reorganize their debts and continue operating.

What is a Chapter 12 bankruptcy?

  1. A type of bankruptcy used by family farmers and fishermen to reorganize their debts

  2. A type of bankruptcy used by businesses to reorganize their debts

  3. A type of bankruptcy used by individuals to reorganize their debts

  4. A type of bankruptcy used by individuals to liquidate their assets

Show answer
Correct Option: A
Explanation:

Chapter 12 bankruptcy is a type of bankruptcy that allows family farmers and fishermen to reorganize their debts and continue operating their businesses.

What is a Chapter 13 bankruptcy?

  1. A type of bankruptcy used by individuals to reorganize their debts

  2. A type of bankruptcy used by businesses to reorganize their debts

  3. A type of bankruptcy used by individuals to liquidate their assets

  4. A type of bankruptcy used by businesses to liquidate their assets

Show answer
Correct Option: A
Explanation:

Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to reorganize their debts and create a repayment plan.

What is a Chapter 7 bankruptcy?

  1. A type of bankruptcy used by individuals to liquidate their assets

  2. A type of bankruptcy used by businesses to liquidate their assets

  3. A type of bankruptcy used by individuals to reorganize their debts

  4. A type of bankruptcy used by businesses to reorganize their debts

Show answer
Correct Option: A
Explanation:

Chapter 7 bankruptcy is a type of bankruptcy that allows individuals to liquidate their non-exempt assets and discharge their debts.

What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?

  1. Chapter 11 is used by businesses, while Chapter 13 is used by individuals

  2. Chapter 11 allows for reorganization, while Chapter 13 requires liquidation

  3. Chapter 11 has a higher filing fee than Chapter 13

  4. All of the above

Show answer
Correct Option: D
Explanation:

Chapter 11 bankruptcy is used by businesses to reorganize their debts, while Chapter 13 bankruptcy is used by individuals to reorganize their debts. Chapter 11 allows for reorganization, while Chapter 13 requires liquidation. Chapter 11 has a higher filing fee than Chapter 13.

- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions