CBS Cheat Sheet 2026

The 30 highest-yield CBS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following is a potential consequence of debt settlement? → It may lower total debt owed but negatively affect credit scores.
2. A company has $10M in EBITDA and $80M in debt. What is its leverage ratio and what does it suggest? → 8x, indicating the company is highly leveraged and may face restructuring
3. In Certified Bankruptcy Specialist, what is the purpose of team-building activities? → To strengthen collaboration, trust, and communication
4. What is the first step in filing for bankruptcy? → Filing a bankruptcy petition with the court.
5. Under the Bankruptcy Code, what is the standard look-back period for avoiding fraudulent transfers made to non-insiders? → 2 years before the bankruptcy filing
6. Which regulatory framework most impacts Chapter 13 Repayment Plans in Certified Bankruptcy Specialist? → Federal and state regulatory requirements specific to the industry
7. What is the role of a bankruptcy trustee? → To manage the case and distribute assets to creditors.
8. What happens when errors are discovered in Chapter 13 Repayment Plans for Certified Bankruptcy Specialist? → Investigate, correct, document, and implement preventive measures
9. What is the primary goal of Post-Bankruptcy Recovery Planning in Certified Bankruptcy Specialist? → Ensuring accuracy, compliance, and financial integrity
10. Which skill is most important for success in Financial Statement Analysis within Certified Bankruptcy Specialist? → Continuous learning and adaptation
11. What is a 'prepackaged' bankruptcy filing? → A plan of reorganization negotiated and voted on by creditors before filing
12. What document must debtors complete to disclose their financial situation when filing for bankruptcy? → A schedule of assets and liabilities.
13. How does technology support Chapter 13 Repayment Plans in Certified Bankruptcy Specialist? → It automates processes, reduces errors, and improves reporting
14. Why is credit counseling important for individuals facing financial difficulties? → It helps individuals manage debt and improve financial literacy.
15. What is the purpose of the 341 meeting in bankruptcy proceedings? → To allow creditors and the trustee to question the debtor.
16. Which type of tax debt is generally NOT dischargeable in bankruptcy? → Trust fund taxes (payroll taxes withheld from employees but not remitted to the IRS)
17. What happens when errors are discovered in Creditor Rights & Negotiations for Certified Bankruptcy Specialist? → Investigate, correct, document, and implement preventive measures
18. Which type of restructuring transaction involves the debtor buying back its own distressed bonds in the open market at a discount? → Open market repurchase
19. What does accountability mean in Certified Bankruptcy Specialist team management? → Taking ownership of responsibilities and outcomes
20. What is the primary goal of Chapter 13 Repayment Plans in Certified Bankruptcy Specialist? → Ensuring accuracy, compliance, and financial integrity
21. In the context of Chapter 11, what is a 'stalking horse bidder'? → An initial bidder who sets the baseline price for asset sales subject to higher bids
22. What is the role of documentation in Financial Statement Analysis for Certified Bankruptcy Specialist? → It provides an accurate record for accountability and reference
23. A 'constructive' fraudulent transfer under Section 548 requires proof that the debtor received less than reasonably equivalent value AND which of the following? → The debtor was insolvent, undercapitalized, or unable to pay debts as they came due
24. What is a fundamental principle of Financial Statement Analysis in Certified Bankruptcy Specialist practice? → Following established standards and best practices
25. If a trustee successfully avoids a transfer under Section 548, what remedy is typically available under Section 550? → The trustee may recover the property transferred or its value from the transferee
26. What is the role of documentation in Asset Valuation & Exemptions for Certified Bankruptcy Specialist? → Creating an auditable trail of all transactions and decisions
27. What is the primary goal of Chapter 7 Liquidation Procedures in Certified Bankruptcy Specialist? → Ensuring accuracy, compliance, and financial integrity
28. What is the primary goal of debt restructuring? → To negotiate new terms that make repayment feasible.
29. What happens when errors are discovered in Asset Valuation & Exemptions for Certified Bankruptcy Specialist? → Investigate, correct, document, and implement preventive measures
30. Which section of the Bankruptcy Code governs the assumption or rejection of executory contracts in Chapter 11? → Section 365