CCDS Study Guide 2026
Everything you need to pass the CCDS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CCDS Exam Format at a Glance
📚 CCDS Topics to Study (21)
✍️ Sample CCDS Questions & Answers
1. How long does a Chapter 7 bankruptcy remain on a consumer's credit report?
A Chapter 7 bankruptcy filing remains on a consumer's credit report for 10 years from the date of filing.
2. Which type of consumer debt is typically classified as 'unsecured'?
Credit card balances are unsecured because no specific collateral backs the debt.
3. Which type of bankruptcy allows individuals with regular income to repay debts over a 3- to 5-year plan?
Chapter 13 bankruptcy enables individuals with regular income to propose a repayment plan lasting 3 to 5 years.
4. What is a debt-to-income (DTI) ratio?
The debt-to-income (DTI) ratio is a key financial metric that compares a client's total monthly debt payments to their gross monthly income. Lenders use this ratio to evaluate a borrower's capacity to manage additional monthly payments and repay new debts. A lower DTI ratio generally indicates a healthier financial position, which typically increases the likelihood of loan approval and favorable terms.
5. What is the legal term for a situation where a debtor's bank account is frozen or funds are seized to satisfy a court judgment?
A bank levy allows a creditor with a court judgment to seize funds directly from a debtor's bank account to satisfy the debt.
6. What is the 'homestead exemption' in bankruptcy?
The homestead exemption protects a specified amount of home equity from being seized by creditors in bankruptcy.