CCDS CCDS Consumer Bankruptcy & Debt Settlement 2

Question 1

Which federal agency oversees the enforcement of consumer bankruptcy laws in the U.S.?

Accepted Answer

U.S. Trustee Program (USTP)

Answer

The U.S. Trustee Program, a component of the Department of Justice, oversees the administration of bankruptcy cases.

Question 2

What is 'reaffirmation' in the context of Chapter 7 bankruptcy?

Accepted Answer

A debtor's agreement to remain personally liable on a specific debt

Answer

Reaffirmation is an agreement by the debtor to continue paying and remain personally liable on a debt that would otherwise be discharged.

Question 3

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

Accepted Answer

10 years

Answer

A Chapter 7 bankruptcy filing remains on a consumer's credit report for 10 years from the date of filing.

Question 4

What is the primary risk for a consumer who enters a debt settlement program?

Accepted Answer

Severe credit score damage and potential lawsuits during negotiation

Answer

During debt settlement, creditors may sue for unpaid amounts and the consumer's credit score can drop significantly.

Question 5

Which term describes a court-appointed individual responsible for administering a bankruptcy estate and liquidating non-exempt assets?

Accepted Answer

Bankruptcy trustee

Answer

A bankruptcy trustee is appointed by the court to administer the estate, review filings, and distribute proceeds to creditors.

CCDS - Certified Consumer Debt Specialist Practice Test