CCC Bankruptcy & Credit Recovery Flashcards
6 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCC Bankruptcy & Credit Recovery flashcards as text
Under U.S. bankruptcy law, which chapter allows individuals to eliminate most unsecured debts through a liquidation process?
Answer: Chapter 7
Chapter 7 bankruptcy is a liquidation process that allows eligible individuals to discharge most unsecured debts after a means test.
What is the primary purpose of the credit counseling requirement under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005?
Answer: To ensure debtors receive counseling about alternatives to bankruptcy within 180 days before filing
BAPCPA requires debtors to complete credit counseling from an approved agency within 180 days before filing for bankruptcy.
Which type of debt CANNOT typically be discharged in a Chapter 7 bankruptcy?
Answer: Federal student loans
Federal student loans are generally non-dischargeable in bankruptcy unless the debtor can prove undue hardship under the Brunner test.
In a Chapter 13 bankruptcy, what is the typical repayment plan duration?
Answer: 3 to 5 years
Chapter 13 repayment plans must last 3 years for below-median-income debtors and up to 5 years for above-median-income debtors.
What is an 'automatic stay' in the context of bankruptcy?
Answer: An immediate injunction that halts most collection actions against the debtor upon filing
The automatic stay is a powerful injunction triggered automatically upon filing that stops most creditor collection efforts, lawsuits, and garnishments.
How long does a Chapter 7 bankruptcy typically remain on a consumer's credit report?
Answer: 10 years from the filing date
A Chapter 7 bankruptcy can remain on a credit report for up to 10 years from the filing date under the Fair Credit Reporting Act.