CCDS Consumer Bankruptcy & Debt Settlement Flashcards
6 cards from real CCDS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCDS Consumer Bankruptcy & Debt Settlement flashcards as text
Which federal agency oversees the enforcement of consumer bankruptcy laws in the U.S.?
Answer: U.S. Trustee Program (USTP)
The U.S. Trustee Program, a component of the Department of Justice, oversees the administration of bankruptcy cases.
What is 'reaffirmation' in the context of Chapter 7 bankruptcy?
Answer: A debtor's agreement to remain personally liable on a specific debt
Reaffirmation is an agreement by the debtor to continue paying and remain personally liable on a debt that would otherwise be discharged.
How long does a Chapter 7 bankruptcy remain on a consumer's credit report?
Answer: 10 years
A Chapter 7 bankruptcy filing remains on a consumer's credit report for 10 years from the date of filing.
What is the primary risk for a consumer who enters a debt settlement program?
Answer: Severe credit score damage and potential lawsuits during negotiation
During debt settlement, creditors may sue for unpaid amounts and the consumer's credit score can drop significantly.
Which term describes a court-appointed individual responsible for administering a bankruptcy estate and liquidating non-exempt assets?
Answer: Bankruptcy trustee
A bankruptcy trustee is appointed by the court to administer the estate, review filings, and distribute proceeds to creditors.
What is the 'homestead exemption' in bankruptcy?
Answer: Protection of a portion of home equity from creditors
The homestead exemption protects a specified amount of home equity from being seized by creditors in bankruptcy.