CCC CCC Bankruptcy & Credit Recovery

Question 1

Under U.S. bankruptcy law, which chapter allows individuals to eliminate most unsecured debts through a liquidation process?

Accepted Answer

Chapter 7

Answer

Chapter 11

Answer

Chapter 13

Answer

Chapter 9

Question 2

What is the primary purpose of the credit counseling requirement under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005?

Accepted Answer

To ensure debtors receive counseling about alternatives to bankruptcy within 180 days before filing

Answer

To allow debtors to skip the means test

Answer

To provide post-bankruptcy financial management education only

Answer

To waive mandatory court fees for low-income filers

Question 3

Which type of debt CANNOT typically be discharged in a Chapter 7 bankruptcy?

Accepted Answer

Federal student loans

Answer

Medical bills

Answer

Credit card debt

Answer

Personal loans

Question 4

In a Chapter 13 bankruptcy, what is the typical repayment plan duration?

Accepted Answer

3 to 5 years

Answer

6 to 12 months

Answer

1 to 2 years

Answer

7 to 10 years

Question 5

What is an 'automatic stay' in the context of bankruptcy?

Accepted Answer

An immediate injunction that halts most collection actions against the debtor upon filing

Answer

A court order requiring the debtor to remain in the state during proceedings

Answer

A delay in discharging debts until creditors are notified

Answer

A mandatory waiting period before a second bankruptcy can be filed

Question 6

How long does a Chapter 7 bankruptcy typically remain on a consumer's credit report?

Accepted Answer

10 years from the filing date

Answer

5 years from the filing date

Answer

7 years from the discharge date

Answer

7 years from the filing date