Bankruptcy and Charitable Giving Quiz

What is the primary reason individuals file for bankruptcy?

• To avoid paying taxes

• To eliminate or reorganize debt

• To receive government assistance

• To improve credit scores

Which type of bankruptcy is most commonly used by individuals?

• Chapter 7

• Chapter 11

• Chapter 13

• Chapter 9

Which of the following debts is typically NOT discharged in a Chapter 7 bankruptcy?

• Credit card debt

• Student loan debt

• Medical bills

• Personal loans

What is one of the major benefits of filing for Chapter 13 bankruptcy?

• Immediate discharge of all debts

• Ability to keep certain property

• No requirement for repayment

• Exempt from taxes

Which of the following is a requirement for filing Chapter 7 bankruptcy?

• A repayment plan must be developed

• The individual must pass a means test

• The individual must own a business

• The individual must owe more than $50,000 in debt

What is one consequence of filing for Chapter 7 bankruptcy?

• All property is protected from creditors

• The bankruptcy remains on the credit report for 10 years

• The individual can never borrow money again

• The debtor’s income is automatically increased

Which of the following best describes Chapter 11 bankruptcy?

• It is used primarily for individuals

• It is used primarily for businesses to reorganize debt

• It allows individuals to discharge all debts immediately

• It involves liquidation of assets

What is the role of a bankruptcy trustee in Chapter 7 bankruptcy?

• To assist the debtor in repaying creditors

• To liquidate assets and distribute proceeds to creditors

• To negotiate with creditors for a better deal

• To create a repayment plan for the debtor

Which of the following debts is most likely to be discharged in Chapter 13 bankruptcy?

• Child support payments

• Mortgage debt

• Unsecured credit card debt

• Tax debt

What is the “means test” used for in Chapter 7 bankruptcy?

• To determine the debtor's ability to repay debt

• To calculate the bankruptcy fees

• To decide whether the debtor should file for Chapter 11

• To evaluate the debtor’s income and eligibility for bankruptcy