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FAFSA and Bankruptcy Questions

Total questions: 11

Worksheet time: 7mins

Name
Class
Date
1.

When should you complete the FAFSA form?

a)

Only once during your college career

b)

Every semester

c)

Every academic year

d)

Only if you need a loan

2.

Which of the following is NOT a type of financial aid you can receive through FAFSA?

a)

Grants

b)

Scholarships

c)

Work-study funds

d)

Credit cards

3.

What is the primary purpose of the FAFSA?

a)

To apply for student loans only

b)

To determine eligibility for federal, state, and school financial aid

c)

To register for classes

d)

To apply for a job

4.

Which of the following best describes a Chapter 7 bankruptcy?

a)

A) A debt repayment plan where creditors are paid over 3-5 years

b)

B) A liquidation process where non-exempt assets are sold to pay creditors

c)

C) A bankruptcy type available only to businesses

5.

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

a)

Credit card debt

b)

Medical bills

c)

Student loans

d)

Personal loans

6.

Which of the following is a key difference between Chapter 7 and Chapter 13 bankruptcy?

a)

Chapter 7 involves the debtor paying off the debt through a monthly payment plan, while Chapter 13 involves liquidation of assets.

b)

Chapter 7 is for individuals and businesses, while Chapter 13 is only for individuals with regular income.

c)

Chapter 7 offers a longer repayment period than Chapter 13.

d)

Chapter 7 involves a fixed repayment schedule, while Chapter 13 does not have any payment requirements.

7.

How long does a Chapter 13 bankruptcy typically remain on a debtor’s credit report?

a)

5 years

b)

7 years

c)

10 years

d)

15 years

8.

Which type of debt is typically not discharged in bankruptcy?

a)

Credit card debt

b)

Medical bills

c)

Student loans

d)

Personal loans

9.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

a)

Chapter 7 is for businesses only, while Chapter 13 is for individuals only.

b)

Chapter 7 is for individuals and businesses, while Chapter 13 is only for individuals with regular income.

c)

Chapter 7 is for individuals with regular income, while Chapter 13 is for businesses only.

d)

Chapter 7 and Chapter 13 are for individuals only.

10.

How long does a Chapter 7 bankruptcy remain on an individual's credit report?

a)

5 years

b)

7 years

c)

10 years

d)

15 years

11.

What are the benefits of attending a local community college?

a)

It is cheaper to earn an Associate’s degree at a community college and then transfer to a four-year college to finish.

b)

You can live at home and save dorm fees while earning an Associate’s degree.

c)

Choosing a local community college within closer driving range saves on transportation costs.

d)

All of the above.