CIRA Practice Test

The CIRA is the Certified Insolvency & Restructuring Advisor credential from the Association of Insolvency & Restructuring Advisors, taken by people with distressed-business experience. This page gives you free practice sets by topic, three worked questions with explanations, a study plan and answers to common questions. Everything here is written with AI tools and is not taken from real exam questions.

CIRA Exam at a Glance

What changed for CIRA in 2026

• Oct 25, 2026: Delivery changed to Online, self-proctored timed document (previously Online, self-proctored (Digify timed document); courses online or hybrid).^[1]
• Oct 25, 2026: Next exam date changed to Exam blocks typically 4 consecutive days (previously Exam blocks are typically 4 consecutive days (Thu–Sun)).^[1]
• Oct 25, 2026: Number of questions changed to Multiple choice plus two long-form essays (previously Multiple-choice section plus two long-form essay questions).^[1]
• Oct 25, 2026: Time limit changed to 4 hours per part (previously 4 hours per exam part (uninterrupted timer)).^[2]
• Oct 25, 2026: Testing window (Part 1) changed to Oct 29 – Nov 1, 2026 (previously Next Part 1 exam block: Oct 22–25, 2026).^[5]
• Oct 25, 2026: Testing window (Part 2) changed to Nov 5–8, 2026 (previously Next Part 2 exam block: Nov 5–8, 2026).^[5]
• Oct 25, 2026: Testing window (Part 3) changed to Nov 12–15, 2026 (previously Next Part 3 exam block: Nov 12–15, 2026).^[5]
• Oct 25, 2026: Eligibility changed to AIRA membership, bachelor's degree, 5 yrs experience, 4,000 hrs distressed work, 3 references (previously AIRA membership + bachelor's degree; certification also needs 5 yrs experience, 4,000 hrs distressed work, 3 references).^[4]
• Oct 25, 2026: Validity changed to All 3 parts within 3 years (previously All 3 parts must be passed within 3 years).^[4]
• Oct 25, 2026: Renewal changed to 60 CPE per 3-year period (previously 60 CPE every 3 years + active AIRA membership).^[4]
• Oct 25, 2026: Retake fee changed to $125 exam only; $250 with another course section (previously $125 exam-only retake; $250 with another course section).^[3]
• Oct 25, 2026: Retake policy changed to Free reschedule with 2 business days' notice (previously Retake in a later exam block; free reschedule with 2 business days' notice).^[3]

What the CIRA is and how it works

According to Association of Insolvency & Restructuring Advisors, “Pages 2-9 are for the two long-form essay questions (Questions 2 & 3).”^[1]

The CIRA credential is awarded by the Association of Insolvency & Restructuring Advisors (AIRA) to people who work in distressed business situations. The AIRA site lists these eligibility items: AIRA membership, a bachelor's degree, 5 years of experience, 4,000 hours of specialized distressed work and 3 references. Candidates must pass all 3 course and examination parts within 3 years.

The exams are delivered online in a self-proctored testing environment. Each part is available during a scheduled exam block, which is typically a consecutive 4-day period, and uses an uninterrupted 4-hour timer. The format combines multiple choice with two long-form essay questions, so you need to be able to write out your reasoning as well as recognize the right answer. The blocks AIRA lists are Part 1 on Oct 29 – Nov 1, 2026, Part 2 on Nov 5–8, 2026 and Part 3 on Nov 12–15, 2026.

If you need another attempt, a failed examination may be retaken for $125 on its own, or $250 when taken with another course section. You can reschedule to another exam block without charge if you notify AIRA at least 2 business days ahead. After certification, CIRAs report 60 CPE credits for each 3-year period.

We could not verify a published passing score, question count or official content outline, so check the AIRA pages for those details and for any change to dates or fees.

Worked examples: how to reason through CIRA questions

These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.

Example 1

Question: Why is cash flow analysis important in restructuring?

1. Ignore payments
2. Assess ability to pay debts
3. Increase liabilities
4. Delay decisions

Answer: B. Assess ability to pay debts

Explanation:

The correct answer is that cash flow analysis assesses the ability to pay debts. A restructuring plan only works if the business can generate enough cash to meet the obligations it keeps, so the analysis tests whether the plan is feasible and shows where liquidity runs short.

Ignoring payments is wrong because the analysis tracks payments rather than setting them aside. Increasing liabilities is wrong because analysis describes the position and does not change what is owed. Delaying decisions is wrong because the purpose is to inform decisions sooner and with better evidence.

Rule to remember: in restructuring, cash flow is the test of whether a proposed plan can actually be carried out.

Example 2

Question: What is the primary purpose of the 'automatic stay' that takes effect upon a Chapter 11 bankruptcy filing?

1. To immediately halt most collection actions and lawsuits against the debtor
2. To freeze the debtor's management in place permanently
3. To prohibit the debtor from paying any employees
4. To require all vendors to continue supplying the debtor

Answer: A. To immediately halt most collection actions and lawsuits against the debtor

Explanation:

The automatic stay immediately halts most collection actions and lawsuits against the debtor once a Chapter 11 case is filed. That gives the debtor room to reorganize without a race among creditors.

Freezing management in place permanently is wrong because the stay is a temporary protection, and it does not lock anyone into a role. Prohibiting payment of employees is wrong because the stay restricts creditors, not the debtor's ordinary operations. Requiring vendors to keep supplying the debtor is wrong because the stay stops collection efforts and does not create a duty to extend new credit or deliver goods.

Rule to remember: the stay pauses creditor enforcement, and it does not rewrite the debtor's relationships.

Example 3

Question: Under the CIRA Body of Knowledge, which concept describes a lender's right to receive proceeds from collateral before unsecured creditors?

1. Equitable subordination
2. Secured creditor priority
3. Administrative claim seniority
4. Preference recovery right

Answer: B. Secured creditor priority

Explanation:

Secured creditor priority is the concept that a lender with an interest in collateral is paid from the proceeds of that collateral before general unsecured creditors receive a distribution.

Equitable subordination is wrong because it is a remedy that pushes down a claim because of inequitable conduct, and it is not the ordinary right attached to collateral. Administrative claim seniority is wrong because it concerns the cost of running the estate, not a lender's rights in specific collateral. Preference recovery right is wrong because it concerns recovering certain pre-filing transfers for the estate.

Rule to remember: ask what the claim is attached to. A claim tied to specific collateral is paid from that collateral first.

How to use these practice tests

Start with the official AIRA material for the part you are sitting, since the course and exam content come from there. Use our sets to find weak spots, not to learn the subject from scratch.

1. Take CIRA Principles & Practices cold to see where you stand, and note each missed topic.
2. Work through the sets that match your gaps: Bankruptcy & Restructuring Procedures, Valuation Methods & Asset Assessment and Financial Analysis & Reporting.
3. Add Cash Flow Management & Liquidity Analysis, Negotiation & Workout Strategies and Legal & Regulatory Environment.
4. Finish with Ethical Standards & Professional Conduct, Risk Assessment & Management, Regulatory Compliance and Investment Principles.

For every wrong answer, read the explanation, then write a short note in your own words on why the correct option wins. Because the exam includes long-form essays, practise explaining a few of those notes in full paragraphs under a timer. In the final days, rework only the questions you missed.

Sources & last verified

1. Association of Insolvency & Restructuring Advisors — number of questions, delivery, next exam date (official source). “Pages 2-9 are for the two long-form essay questions (Questions 2 & 3).” Verified Oct 25, 2026 · source checked Oct 22, 2026.
2. Association of Insolvency & Restructuring Advisors — time limit (official source). “Each online examination is available during a scheduled exam block and uses an uninterrupted four-hour timer.” Verified Oct 25, 2026.
3. Association of Insolvency & Restructuring Advisors — retake fee, retake policy (official source). “A failed examination may be retaken with another course section for $250, or separately without the course for $125.” Verified Oct 25, 2026 · source checked Oct 22, 2026.
4. Association of Insolvency & Restructuring Advisors — validity, renewal, eligibility (official source). “Pass all three course and examination parts within three years.” Verified Oct 25, 2026 · source checked Oct 22, 2026.
5. Association of Insolvency & Restructuring Advisors — testing window (official source). “CIRA/CDBV Part 1 Oct 29 - Nov 1, 2026” Verified Oct 25, 2026 · source checked Oct 22, 2026.

How we verify: editorial & fact-checking policy. Report an error: contact us.