CBS Post-Bankruptcy Recovery Planning 2

Question 1

After receiving a Chapter 7 discharge, how long must a debtor wait before filing another Chapter 7 case?

Accepted Answer

8 years

Answer

Under 11 U.S.C. § 727(a)(8), a debtor must wait 8 years from the prior Chapter 7 filing date before receiving another Chapter 7 discharge.

Question 2

Which credit bureau reporting rule governs how long a Chapter 7 bankruptcy remains on a consumer's credit report?

Accepted Answer

Fair Credit Reporting Act (FCRA)

Answer

The FCRA limits Chapter 7 bankruptcy reporting to 10 years from the filing date, while Chapter 13 is limited to 7 years.

Question 3

A debtor who completed Chapter 13 wants to build credit. Which secured product is typically the most accessible immediately post-bankruptcy?

Accepted Answer

Secured credit card

Answer

Secured credit cards require a cash deposit as collateral, making them accessible to post-bankruptcy debtors who would be declined for unsecured products.

Question 4

Which of the following post-discharge debts is most likely to be reported positively to credit bureaus and help rebuild credit?

Accepted Answer

New secured auto loan with on-time payments

Answer

A new secured auto loan with timely payments creates a positive payment history that credit bureaus report favorably, directly rebuilding credit scores.

Question 5

A post-bankruptcy client receives pre-approved credit card offers with very high interest rates. What term describes this predatory lending practice targeting financially vulnerable consumers?

Accepted Answer

Risk-based pricing

Answer

Risk-based pricing refers to charging higher interest rates based on a borrower's perceived credit risk, which post-bankruptcy debtors often face.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Post-Bankruptcy Recovery Planning 2