Bankruptcy Quiz

What opportunity does bankruptcy provide to debtors?

• A chance to avoid all debts

• A new economic start

• A way to hide assets

• A method to increase debt

Which chapter is referred to as "straight bankruptcy"?

• Chapter 7

• Chapter 11

• Chapter 12

• Chapter 13

What is the purpose of distributing the proceeds to creditors in Chapter 7 bankruptcy?

• To increase the debtor's wealth

• To discharge the debtor's financial obligations

• To invest in new ventures

• To pay for legal fees

What is the outcome for creditors in Chapter 7 bankruptcy?

• They receive nothing

• They receive proceeds from asset sales

• They gain ownership of the debtor's property

• They negotiate new terms

What is the minimum amount owed for an involuntary bankruptcy petition?

• $10,000

• $15,000

• $12,450

• $20,000

Which statement is required in a bankruptcy filing?

• Statement of future goals

• Statement explaining the debtor’s finances

• Statement of personal beliefs

• Statement of educational background

What must be included in the list of property for a bankruptcy filing?

• List of all debts

• List of property owned and properties that are exempt

• List of all family members

• List of all past addresses

What percentage of all debts must be related to the operation of the farm under Chapter 12?

• At least 50%

• At least 80%

• At least 60%

• At least 70%

How long is the initial period for installment payments under Chapter 13?

• 1 year

• 3 years

• 5 years

• 10 years

What is the main advantage of submitting a payment plan under Chapter 13?

• Immediate asset liquidation

• Structured debt repayment

• Increased debt limits

• No need for regular income