Intro to Business and Bankruptcy Quiz

Imagine Luna has a regular income but is overwhelmed by debt. Which bankruptcy chapter is she most likely to use?

• Businesses declaring bankruptcy

• Discharging all types of debts immediately

• Liquidation of assets

• Reorganization plan for individuals with regular income

Who proposes the payment plan in Chapter 13 bankruptcy for Sophia's bakery?

• The court

• The creditors

• The debtor

• The trustee

Imagine Kai has filed for Chapter 13 bankruptcy. What must Kai's payment plan provide to unsecured creditors?

• At least as much as they would have gotten in Chapter 7

• Nothing at all

• A new car

• Full payment with interest

After facing financial difficulties, Priya decides to file for Chapter 13 bankruptcy. Considering her income and debt, her lawyer explains the repayment plan duration. How long do these plans typically last?

• 10 years

• 1 to 2 years

• 3 to 5 years

• 6 to 8 years

What happens if you stop making plan payments in Chapter 13?

• The plan is automatically extended

• The debt is forgiven

• The case may be dismissed

• Interest rates are lowered

Imagine Nora has filed for Chapter 13 bankruptcy. What is the role of creditors in her case?

• They manage Nora's assets

• They can object to the plan under certain conditions

• They receive full payment immediately

• They propose the payment plan

Oliver has filed for Chapter 13 bankruptcy. What does his confirmed repayment plan bind?

• Only the creditors

• Only Oliver

• All the parties involved

• The bankruptcy judge

Imagine David has filed for Chapter 13 bankruptcy. What restrictions are placed on him during this period?

• Must change jobs every year

• Must not incur significant new debt without court approval

• Cannot own property

• Cannot travel abroad

Can Chapter 13 bankruptcy plans be modified if Noah experiences an unexpected job loss?

• Only with unanimous creditor approval

• Only in the first year

• Yes, if there is an interruption of income

• No, plans are final

Imagine William has filed for Chapter 13 bankruptcy. What does the discharge in his case signify?

• An increase in the amount owed

• A reduction in the payment plan duration

• The legal forgiveness of debts

• A penalty for not following the plan