Planning Beginner: Bankruptcy and Its Alternatives

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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.
Which of the following is true about Chapter 13 bankruptcy?
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This form of bankruptcy involves working out a payment plan to creditors. The other options are false.
3.
Bankruptcy law permits the debtor to choose the debts to be repaid under new terms or discharged completely.
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False. The debtor does not have free choice; both the repayment and debt discharge options are subject to strict rules and limitations.
4.
Which of the following is true?
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The US Trustee supervises the administration of bankruptcy cases. The other choices are false.
5.
Which of the following need not accompany a Chapter 7 bankruptcy petition?
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A workable repayment plan subject to the trustee's approval. While repayment plans are possible, Chapter 7 does not require a repayment plan.