The Ruiz family filed for Chapter 13 bankruptcy. Mr. Ruiz is employed and makes just enough money to pay the family’s living expenses. Mrs. Ruiz found a part-time job on the weekends. They have three minor children living at home. What impact will this family face after filing for bankruptcy?
Answer
A
Mr. and Mrs. Ruiz might face difficulties in getting new credit or loans.
B
Mrs. Ruiz's part-time job will cause the bankruptcy filing to be voided.
C
The Ruiz family will be legally prevented from seeking new employment.
D
Bankruptcy will immediately erase the family's pre-existing credit history.
Explanation
A bankruptcy filing can remain on a credit report and make lenders view the Ruiz family as a higher risk, so Mr. and Mrs. Ruiz might have difficulty getting new credit or loans. It does not immediately erase their past credit history or prevent them from seeking employment. Mrs. Ruiz’s part-time job does not automatically void a Chapter 13 filing.
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