Understanding Chapter 13 Bankruptcy

What is a key benefit of filing for Chapter 13 bankruptcy?

• Immediate debt cancellation

• Automatic approval without court review

• Keeping valuable assets while repaying debts

• No repayment plan needed

Who distributes the payments to creditors in a Chapter 13 plan?

• The bankruptcy judge

• Credit counseling agencies

• The debtor directly

• The Chapter 13 trustee

What must the court find about a Chapter 13 repayment plan for it to be approved?

• It is unlikely to succeed

• It is proposed in bad faith

• It is proposed in good faith

• It benefits only the debtor

What is the role of the Chapter 13 trustee?

• To provide legal advice to the debtor

• To represent the creditors in court

• To distribute payments to creditors

• To approve the repayment plan

Which type of bankruptcy allows debtors to remain in possession of their assets?

• Chapter 9

• Chapter 11

• Chapter 13

• Chapter 7

What is a unique feature of Chapter 13 bankruptcy regarding debt discharge?

• It discharges fewer debts than Chapter 7

• It cannot discharge any debts

• It allows for more types of debts to be discharged

• It only discharges secured debts

What happens to the debtor's non-exempt assets in Chapter 7 bankruptcy?

• They are returned to the debtor after discharge

• They are held by the court

• They are retained by the debtor

• They are distributed among creditors

Who is eligible to file for Chapter 13 bankruptcy?

• All businesses

• Foreign entities

• Individuals and married couples

• Large corporations

What is the maximum amount for unsecured debts in Chapter 13 bankruptcy?

• $500,000

• $250,000

• $1,184,200

• $394,725

What must debtors provide to prove they have undergone credit counseling?

• A certificate from the counseling agency

• A bankruptcy discharge notice

• A letter from a creditor

• A tax return copy