Understanding Chapter 7 Bankruptcy

Which type of bankruptcy is known for being a quicker process?

• Chapter 13

• Chapter 11

• Chapter 7

• Chapter 9

What percentage of bankruptcy cases filed in 2016 were Chapter 7?

• About 50%

• Around 75%

• Less than 40%

• More than 63%

What is the main disadvantage of filing for Chapter 7 bankruptcy?

• Permanent public record

• Loss of all personal assets

• Immediate repayment of all debts

• Decrease in credit score

How does Chapter 7 bankruptcy affect a debtor's access to credit?

• Improves credit score immediately

• Has no effect on credit access

• Reduces access to credit and credit limits

• Increases credit limits

What is the main advantage of filing for Chapter 7 bankruptcy?

• Improvement of credit score

• Keeping all personal assets

• Discharge of most debts

• Quick repayment of debts

Which debts are not dischargeable under Chapter 7 bankruptcy?

• Mortgage payments

• Personal loans

• Income taxes less than three years due

• Credit card debts

What is the purpose of credit counseling before filing for Chapter 7?

• To find a co-signer for the bankruptcy petition

• To understand the consequences of bankruptcy

• To negotiate with creditors

• To increase the debtor's credit score

What is required from a debtor in the six months prior to filing for Chapter 7?

• Negotiation with creditors

• Paying off small debts

• Credit counseling and a means test

• Liquidation of non-exempt assets

What determines a debtor's eligibility for Chapter 7 bankruptcy?

• The debtor's willingness to repay the debts

• The type of assets the debtor owns

• The amount of debt owed

• The debtor's income compared to the state median

What happens immediately after a bankruptcy petition is filed?

• All debts are discharged

• An automatic stay is applied

• Creditors are paid immediately

• The debtor's assets are seized