Understanding Bankruptcies

What is the most common type of bankruptcy for individuals?

• Chapter 15

• Chapter 7

• Chapter 11

• Chapter 12

Which type of bankruptcy involves a repayment plan for individuals?

• Chapter 11

• Chapter 9

• Chapter 13

• Chapter 7

Which type of bankruptcy is primarily used for large reorganizations?

• Chapter 11

• Chapter 13

• Chapter 7

• Chapter 12

What does Chapter 12 bankruptcy specifically cater to?

• Family farmers and fishermen

• Large corporations

• Municipalities

• International cases

Which type of bankruptcy is used in foreign cases?

• Chapter 9

• Chapter 11

• Chapter 13

• Chapter 15

What is the primary goal of bankruptcy?

• To increase income

• To avoid taxes

• To clear debt

• To sell assets

Which type of bankruptcy is known as liquidation?

• Chapter 9

• Chapter 11

• Chapter 13

• Chapter 7

What is a major consequence of filing for Chapter 7 bankruptcy?

• Immediate debt clearance

• 10-year credit report impact

• Increased income

• No asset liquidation

Which type of bankruptcy allows municipalities to reorganize?

• Chapter 15

• Chapter 13

• Chapter 9

• Chapter 11

What is a common reason people file for bankruptcy?

• Job loss

• Winning the lottery

• Buying a new car

• Starting a business