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1.
The Bankruptcy Code allows an individual debtor to protect ________.
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.
2.
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.
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.
3.
Which of the following need not accompany a Chapter 7 bankruptcy petition?
A workable repayment plan subject to the trustee's approval. While repayment plans are possible, Chapter 7 does not require a repayment plan.
4.
Which of the following is an advantage of Chapter 13 bankruptcy over Chapter 7 bankruptcy?
Under Chapter 13, individuals can stop home foreclosure proceedings. But any arrearage must be made up during the term of the repayment plan.
5.
Bankruptcy law permits the debtor to choose the debts to be repaid under new terms or discharged completely.
False. The debtor does not have free choice; both the repayment and debt discharge options are subject to strict rules and limitations.