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1.
Which of the following is true regarding credit counseling and debt negotiation organizations?
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The consumer should be very wary of scams. While there are indeed plenty of scams, the other two statements are false.
2.
Even though Chapter 13 bankruptcy involves a repayment plan, some creditors might get paid less than what they are owed.
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True. Unsecured creditors might have to settle for less.
3.
Which of the following is true regarding bankruptcy?
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None of the above are true. Bankruptcy is designed to help provide a fresh start to debtors facing more debt than they can afford to pay.
4.
Contacting your creditors when you are unable to keep up your payments is a bad idea, because they will immediately flag your account for collection activity.
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False. If you communicate with them, most creditors are willing to work with folks in a bind and use aggressive collection efforts as a last resort.
5.
The Bankruptcy Code allows an individual debtor to protect ________.
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A certain relatively modest amount of property from the claims of creditors. Certain property is exempt under federal law or under the laws of the debtor's home state.