CBS Post-Bankruptcy Recovery Planning 3

Question 1

A Chapter 13 plan is completed and the debtor receives a discharge. What is the conventional mortgage waiting period from the discharge date under Fannie Mae guidelines?

Accepted Answer

2 years

Answer

Fannie Mae (FNMA) guidelines allow a conventional mortgage 2 years after Chapter 13 discharge if other underwriting criteria are met.

Question 2

Which emergency fund benchmark is most commonly recommended for post-bankruptcy clients as a first savings priority?

Accepted Answer

3–6 months of expenses

Answer

Standard financial planning guidance recommends 3–6 months of essential living expenses in a liquid emergency fund to prevent future debt spirals.

Question 3

A debtor's wages were garnished before bankruptcy. Post-discharge, their employer continues garnishing wages citing an administrative oversight. What is the debtor's most immediate legal remedy?

Accepted Answer

File a motion for contempt in the bankruptcy court

Answer

Continued wage garnishment after discharge violates the discharge injunction under 11 U.S.C. § 524, and a contempt motion in bankruptcy court is the proper remedy.

Question 4

Which type of income-based repayment plan for federal student loans can help a post-bankruptcy borrower manage non-dischargeable student loan debt?

Accepted Answer

SAVE (Saving on a Valuable Education) plan

Answer

The SAVE plan caps monthly payments at a percentage of discretionary income, making post-bankruptcy student loan management more sustainable.

Question 5

A bankruptcy specialist advising a client on post-discharge tax planning should note that cancelled debt income (COD income) from discharged debts is generally treated how for federal tax purposes?

Accepted Answer

Excluded from gross income under IRC § 108 for bankruptcy discharges

Answer

Under IRC § 108(a)(1)(A), COD income resulting from a Title 11 bankruptcy case is excluded from the debtor's gross income.

(CBS) Certified Bankruptcy Specialist Practice Test

(CBS) Certified Bankruptcy Specialist Practice Test

CBS Post-Bankruptcy Recovery Planning 3