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1.
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.
2.
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.
3.
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.
4.
Which of the following is true regarding preparing a budget to avoid bankruptcy?
Making secured loan payments should be a higher priority than paying credit card debt. You will have more flexibility in paying credit card debt than secured debt, which includes your mortgage and car payments.
5.
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.