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. Which party bears the burden of proof in a § 523(a) dischargeability action? → The creditor objecting to discharge
3. Which financial metric best captures a distressed firm's ability to service secured debt from operations? → Debt service coverage ratio (DSCR)
4. Under Section 545, a trustee may avoid a statutory lien if the lien first becomes effective when: → The debtor becomes insolvent or fails to meet a financial test
5. Under 11 U.S.C. § 1326(a), when must a debtor begin making plan payments after the petition is filed? → Within 30 days after the plan is filed
6. Under Chapter 11, what is the voting threshold required for a class of creditors to accept a reorganization plan? → At least two-thirds in amount and more than one-half in number of allowed claims voting
7. Under § 362(c)(3), the automatic stay terminates how many days after filing if the debtor had a prior case dismissed within the preceding year? → 30 days
8. A debtor has sales of $500,000, variable costs of $300,000, and fixed costs of $150,000. The margin of safety in dollars is: → $125,000
9. When a CBS specialist evaluates whether a debtor's pricing is below cost, which cost floor concept prevents long-run viability concerns? → Full cost (absorption cost) floor
10. 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
11. What is required for a creditor to obtain relief from the automatic stay on grounds that its interest in property is not adequately protected? → Filing a motion under 11 U.S.C. § 362(d) and demonstrating lack of adequate protection
12. In Certified Bankruptcy Specialist, what is the purpose of team-building activities? → To strengthen collaboration, trust, and communication
13. Under the Till v. SCS Credit Corp. decision, how is the interest rate determined on secured claims in a Chapter 13 plan? → A formula rate starting from the prime rate adjusted for case-specific risk
14. Under 11 U.S.C. § 522(f), a debtor may avoid a judicial lien on exempt property if the lien impairs the exemption. Which formula determines impairment? → Lien + all other liens + exemption amount exceeds the property's value
15. What is the first step in filing for bankruptcy? → Filing a bankruptcy petition with the court.
16. 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
17. Which regulatory framework most impacts Chapter 13 Repayment Plans in Certified Bankruptcy Specialist? → Federal and state regulatory requirements specific to the industry
18. What is the role of a bankruptcy trustee? → To manage the case and distribute assets to creditors.
19. What happens when errors are discovered in Chapter 13 Repayment Plans for Certified Bankruptcy Specialist? → Investigate, correct, document, and implement preventive measures
20. When a CBS specialist uses regression analysis to separate mixed costs into fixed and variable components, the dependent variable is typically: → The total cost being analyzed
21. What is the deadline for a creditor to file a complaint objecting to the dischargeability of a debt under § 523(a)(2), (4), or (6)? → 60 days after the first date set for the § 341 meeting
22. What is the primary goal of Post-Bankruptcy Recovery Planning in Certified Bankruptcy Specialist? → Ensuring accuracy, compliance, and financial integrity
23. Under 11 U.S.C. § 541(a)(5), an inheritance received within how many days after the petition date becomes property of the bankruptcy estate? → 180 days
24. Which skill is most important for success in Financial Statement Analysis within Certified Bankruptcy Specialist? → Continuous learning and adaptation
25. In a Chapter 11 reorganization, how is the value of a secured creditor's collateral most directly relevant to plan confirmation? → It sets the minimum present value the creditor must receive under the cram-down standard
26. What is a 'prepackaged' bankruptcy filing? → A plan of reorganization negotiated and voted on by creditors before filing
27. In a liquidating Chapter 7 bankruptcy, which cost concept is most relevant when deciding whether to complete work-in-process inventory before selling? → Incremental (differential) cost analysis
28. What document must debtors complete to disclose their financial situation when filing for bankruptcy? → A schedule of assets and liabilities.
29. The 'new value' defense to a preference claim under Section 547(c)(4) allows a creditor to offset the preference amount by: → New unsecured credit extended after the preferential payment that remains unpaid
30. Which document should a post-bankruptcy debtor obtain and review annually to ensure discharged debts are correctly reported as discharged on their credit file? → Annual credit report from AnnualCreditReport.com