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Bankruptcy Means Test and Chapter Selection

This quiz covers the Means Test for determining Chapter 7 bankruptcy eligibility, including income limits, allowed expenses, exempt assets, and factors considered. It also explores the differences between Chapter 7 and Chapter 13 bankruptcy, their advantages and disadvantages, who should file each type, eligibility determination methods, and how to prepare for filing bankruptcy.

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the purpose of the Means Test?

  1. To determine whether a debtor is eligible to file for Chapter 7 bankruptcy.
  2. To determine the amount of debt that a debtor can discharge in bankruptcy.
  3. To determine the amount of money that a debtor must pay to creditors in bankruptcy.
  4. To determine the length of time that a debtor must remain in bankruptcy.
Question 2 Multiple Choice (Single Answer)

What factors are considered in the Means Test?

  1. The debtor's income.
  2. The debtor's expenses.
  3. The debtor's assets.
  4. All of the above.
Question 3 Multiple Choice (Single Answer)

What is the income limit for the Means Test?

  1. $15,000 per year for a single filer.
  2. $20,000 per year for a married couple filing jointly.
  3. $25,000 per year for a single filer.
  4. $30,000 per year for a married couple filing jointly.
Question 4 Multiple Choice (Single Answer)

What expenses are allowed under the Means Test?

  1. Rent or mortgage payments.
  2. Utilities.
  3. Food.
  4. Clothing.
  5. Transportation.
  6. Medical expenses.
  7. Child care expenses.
  8. All of the above.
Question 5 Multiple Choice (Single Answer)

What assets are exempt under the Means Test?

  1. A home up to a certain value.
  2. A car up to a certain value.
  3. Personal belongings.
  4. Retirement accounts.
  5. All of the above.
Question 6 Multiple Choice (Single Answer)

What happens if a debtor fails the Means Test?

  1. The debtor will not be able to file for Chapter 7 bankruptcy.
  2. The debtor will be required to file for Chapter 13 bankruptcy.
  3. The debtor will be required to pay back all of their debts in full.
  4. The debtor will be required to liquidate all of their assets.
Question 7 Multiple Choice (Single Answer)

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

  1. In Chapter 7, the debtor's debts are discharged, while in Chapter 13, the debtor must repay their debts over time.
  2. In Chapter 7, the debtor's assets are liquidated, while in Chapter 13, the debtor's assets are not liquidated.
  3. In Chapter 7, the debtor is required to file a petition with the bankruptcy court, while in Chapter 13, the debtor is not required to file a petition with the bankruptcy court.
  4. All of the above.
Question 8 Multiple Choice (Single Answer)

What are the advantages of filing for Chapter 7 bankruptcy?

  1. The debtor's debts are discharged.
  2. The debtor is not required to repay their debts over time.
  3. The debtor's assets are not liquidated.
  4. All of the above.
Question 9 Multiple Choice (Single Answer)

What are the disadvantages of filing for Chapter 7 bankruptcy?

  1. The debtor's credit score will be damaged.
  2. The debtor may be required to surrender some of their assets.
  3. The debtor may be required to attend credit counseling.
  4. All of the above.
Question 10 Multiple Choice (Single Answer)

What are the advantages of filing for Chapter 13 bankruptcy?

  1. The debtor can keep their assets.
  2. The debtor can repay their debts over time.
  3. The debtor's credit score will not be as damaged as it would be if they filed for Chapter 7 bankruptcy.
  4. All of the above.
Question 11 Multiple Choice (Single Answer)

What are the disadvantages of filing for Chapter 13 bankruptcy?

  1. The debtor must repay their debts over time.
  2. The debtor may be required to make regular payments to the bankruptcy court.
  3. The debtor may be required to attend credit counseling.
  4. All of the above.
Question 12 Multiple Choice (Single Answer)

Who should file for Chapter 7 bankruptcy?

  1. Debtors who have a lot of debt and few assets.
  2. Debtors who are facing foreclosure or repossession.
  3. Debtors who have a high income and can afford to repay their debts over time.
  4. Debtors who have a lot of assets and want to keep them.
Question 13 Multiple Choice (Single Answer)

Who should file for Chapter 13 bankruptcy?

  1. Debtors who have a high income and can afford to repay their debts over time.
  2. Debtors who have a lot of assets and want to keep them.
  3. Debtors who are facing foreclosure or repossession.
  4. All of the above.
Question 14 Multiple Choice (Single Answer)

How can I find out if I am eligible to file for Chapter 7 or Chapter 13 bankruptcy?

  1. I can talk to a bankruptcy attorney.
  2. I can use a means test calculator.
  3. I can file a petition with the bankruptcy court.
  4. All of the above.
Question 15 Multiple Choice (Single Answer)

What is the best way to prepare for filing for bankruptcy?

  1. Gather all of your financial documents.
  2. Make a list of your debts and assets.
  3. Talk to a bankruptcy attorney.
  4. All of the above.
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