Planning Beginner: Bankruptcy and Its Alternatives

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1.
Which of the following is true regarding bankruptcy?
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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.
2.
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.
3.
Even though Chapter 13 bankruptcy involves a repayment plan, some creditors might get paid less than what they are owed.
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True. Unsecured creditors might have to settle for less.
4.
The Bankruptcy Code allows an individual debtor to protect ________.
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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.
5.
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.