CCDS CCDS Consumer Bankruptcy & Debt Settlement

Question 1

Under Chapter 7 bankruptcy in the U.S., what is the typical timeframe for receiving a discharge of eligible debts?

Accepted Answer

3 to 6 months

Answer

12 to 18 months

Answer

24 to 36 months

Answer

5 years

Question 2

Which type of bankruptcy allows individuals with regular income to repay debts over a 3- to 5-year plan?

Accepted Answer

Chapter 13

Answer

Chapter 11

Answer

Chapter 7

Answer

Chapter 9

Question 3

What is the 'means test' in Chapter 7 bankruptcy primarily used to determine?

Accepted Answer

Whether the debtor qualifies based on income

Answer

The value of non-exempt assets

Answer

The amount owed to secured creditors

Answer

The debtor's credit score

Question 4

Which of the following debts is generally NON-dischargeable in bankruptcy?

Accepted Answer

Federal student loans

Answer

Credit card debt

Answer

Medical bills

Answer

Personal loans

Question 5

In a debt settlement arrangement, what typically happens to the forgiven portion of the debt?

Accepted Answer

It may be treated as taxable income by the IRS

Answer

It is reported as a tax-exempt gain

Answer

It is automatically applied to future credit balances

Answer

It is forgiven with no financial consequences

Question 6

What is the automatic stay in bankruptcy proceedings?

Accepted Answer

An immediate halt to most collection actions upon filing

Answer

A court order requiring the debtor to appear in person

Answer

A freeze on the debtor's bank accounts

Answer

A delay in the discharge process