Choose wisely. There is only one correct answer to each question.
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1.
Which of the following is true regarding credit counseling and debt negotiation organizations?
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.
True. Unsecured creditors might have to settle for less.
3.
Which of the following is true regarding bankruptcy?
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.
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 ________.
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.