Bankruptcy

What was the consequence of being unable to pay debts in Ancient Greece?

• Imprisonment without trial

• Confiscation of all personal property

• Banishment from the city-state

• Forced labor until debts were paid

What is the primary purpose of bankruptcy?

• To legally declare an inability to pay debts

• To negotiate lower debt payments directly with creditors

• To imprison those who cannot pay their debts

• To eliminate all forms of debt instantly

What is a common misconception about declaring bankruptcy?

• It erases all financial history

• It is a quick and easy process

• It permanently ruins your credit score

• It automatically discharges all types of debts

How much does it cost to file for Chapter 7 bankruptcy?

• $335

• $310

• $1,500

• $4,000

What is a key requirement to qualify for Chapter 7 bankruptcy?

• Owning a home

• Having a job

• Being debt-free for at least a year

• Income below the state's median

Which type of bankruptcy requires a 3-5 year payment plan?

• Chapter 9

• Chapter 11

• Chapter 13

• Chapter 7

What debts are not forgiven in Chapter 13 bankruptcy?

• Credit card debts

• Student loans

• Personal loans

• Medical bills

How long can bankruptcy stay on your credit report?

• Indefinitely

• 5-7 years

• 3-5 years

• 7-10 years

What is the impact of filing for bankruptcy on future employment?

• It guarantees higher paying jobs

• It may hinder job opportunities

• It has no impact

• It improves job prospects

What is required before your debts are discharged in bankruptcy?

• A declaration of permanent insolvency

• Repayment of all debts in full

• Attending a financial education course

• A public apology