Choose wisely. There is only one correct answer to each question.
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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.
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.
3.
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.
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.
Even if only one spouse in a marriage files for bankruptcy, the income and expenses of the non-filing spouse must be disclosed.
True. The income and expenses of the non-filing spouse are required so that the household's financial position can be evaluated.