Bankruptcy — Quiz Answers

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1
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Feeling overwhelmed in debt, Denae reached out to a credit counselor, and together they created a budget and debt management plan. Then Denae lost her job and has been unable to find another position with sufficient income to maintain her budget and schedule. What step should Denae take next?

A
Denae should request an additional line of credit to pay existing creditors.
B
Denae should cease all bill payments pending her future bankruptcy filing.
C
Denae should seek guidance from an attorney skilled in bankruptcy law.
D
Denae should conduct the means evaluation for bankruptcy qualification.
2
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What should a person consider before filing for bankruptcy?

A
Filing for bankruptcy requires assessing the financial status and potential for financial recovery.
B
Filing for bankruptcy subsidizes income when your expenses and debts exceed your income.
C
Filing for bankruptcy allows you to escape financial responsibilities and obligations.
D
Filing for bankruptcy is the only means of developing a manageable debt consolidation plan.
3

Which debt will not be discharged in a bankruptcy?

A
medical bills
B
personal loans
C
student loans
D
utility bills
4

A positive credit history is vital for a healthy financial future. Which of these is an accurate statement about credit scores?

A
Defaulting on loans has no effect on credit scores or future borrowing potential.
B
Credit scores are determined solely by income level and employment status.
C
Closing credit accounts improve credit scores and boosts financial health.
D
Credit scores reflect an individual's creditworthiness and ability to manage debt.
5

Which steps should be taken to get your finances in order and avoid filing for bankruptcy?

A
Take out loans to cover immediate needs and repay it over time.
B
Seek credit counseling to develop a customized debt management plan.
C
Invest all your savings in the stock exchange for quick returns.
D
Maximize your credit card usage to spread out your payments.
6

Ellis recently experienced financial difficulties that resulted in a negative credit history. He now realizes the importance of reestablishing a positive credit history to secure better financial opportunities and stability. What steps can Ellis take to rebuild and maintain a positive credit history?

A
Check credit reports regularly for errors and dispute inaccuracies.
B
Close existing accounts and lines of credit to start with a clean slate.
C
Open new credit accounts to increase his total credit available.
D
Avoid the use of credit cards altogether to prevent the risk of debt.
7

How can an individual determine the appropriate time to declare bankruptcy?

A
when overwhelmed by expenses and unable to manage finances
B
when pay from overtime fails to cover the cost of monthly expenses
C
when all alternatives are exhausted, but debts remain unaffordable
D
when attempts to adhere to a budget plan are unsuccessful
8

Eduardo is feeling overwhelmed with bills and considering filing for bankruptcy. Which step should Eduardo take to make a positive change in his financial situation and avoid filing for bankruptcy?

A
Eduardo should consider debt consolidation.
B
Eduardo should seek advice from a lawyer.
C
Eduardo should open a secure credit card.
D
Eduardo should complete the means test.
9

Which are two steps to take to get your finances in order and avoid filing for bankruptcy?

A
take the means test and seek financial counseling
B
make a budget and seek financial counseling
C
make a budget and seek advice from a lawyer
D
take the means test and seek advice from a lawyer
10

Each month Kody is struggling to make ends meet since maxing out his credit cards to pay for car repairs and medical bills. He is unaware of any way to resolve his financial issues and is considering filing for bankruptcy. Which step should Kody take before considering filing for Chapter 7 bankruptcy?

A
Kody should sell all his assets to repay his debts.
B
Kody should seek debt counseling or consolidation.
C
Kody should withdraw his entire retirement savings.
D
Kody should immediately stop paying all his debts.

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Bankruptcy — Quiz Answers — Personal Finance