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Chapter 7 Bankruptcy

This quiz will test your knowledge on Chapter 7 Bankruptcy.

14 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the purpose of Chapter 7 Bankruptcy?

  1. To reorganize debts and allow the debtor to continue operating
  2. To liquidate assets and distribute proceeds to creditors
  3. To provide a fresh start for debtors who are unable to repay their debts
  4. To allow debtors to temporarily stop making payments on their debts
Question 2 Multiple Choice (Single Answer)

Who is eligible to file for Chapter 7 Bankruptcy?

  1. Individuals, businesses, and non-profit organizations
  2. Individuals and businesses only
  3. Individuals only
  4. Businesses and non-profit organizations only
Question 3 Multiple Choice (Single Answer)

What is the means test in Chapter 7 Bankruptcy?

  1. A test to determine if the debtor has sufficient income to repay their debts
  2. A test to determine if the debtor has sufficient assets to repay their debts
  3. A test to determine if the debtor has sufficient expenses to justify filing for bankruptcy
  4. A test to determine if the debtor has sufficient debts to justify filing for bankruptcy
Question 4 Multiple Choice (Single Answer)

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

  1. Chapter 7 is a liquidation bankruptcy and Chapter 13 is a reorganization bankruptcy
  2. Chapter 7 is a reorganization bankruptcy and Chapter 13 is a liquidation bankruptcy
  3. Chapter 7 is a bankruptcy for individuals and Chapter 13 is a bankruptcy for businesses
  4. Chapter 7 is a bankruptcy for businesses and Chapter 13 is a bankruptcy for individuals
Question 5 Multiple Choice (Single Answer)

What are the consequences of filing for Chapter 7 Bankruptcy?

  1. The debtor's debts are discharged
  2. The debtor's assets are liquidated and the proceeds are distributed to creditors
  3. The debtor is required to make regular payments to creditors
  4. The debtor is prohibited from filing for bankruptcy again
Question 6 Multiple Choice (Single Answer)

What is the waiting period between filing for Chapter 7 Bankruptcy and receiving a discharge?

  1. 6 months
  2. 1 year
  3. 2 years
  4. 3 years
Question 7 Multiple Choice (Single Answer)

What debts are not dischargeable in Chapter 7 Bankruptcy?

  1. Student loans
  2. Taxes
  3. Child support
  4. Alimony
Question 8 Multiple Choice (Single Answer)

What is the effect of Chapter 7 Bankruptcy on a debtor's credit score?

  1. It will improve the debtor's credit score
  2. It will have no effect on the debtor's credit score
  3. It will lower the debtor's credit score
  4. It will destroy the debtor's credit score
Question 9 Multiple Choice (Single Answer)

What is the difference between a Chapter 7 Bankruptcy Trustee and a Chapter 13 Bankruptcy Trustee?

  1. A Chapter 7 Bankruptcy Trustee is appointed by the court to oversee the liquidation of the debtor's assets, while a Chapter 13 Bankruptcy Trustee is appointed by the court to oversee the debtor's reorganization plan
  2. A Chapter 7 Bankruptcy Trustee is appointed by the court to oversee the debtor's reorganization plan, while a Chapter 13 Bankruptcy Trustee is appointed by the court to oversee the liquidation of the debtor's assets
  3. A Chapter 7 Bankruptcy Trustee is appointed by the creditors to oversee the liquidation of the debtor's assets, while a Chapter 13 Bankruptcy Trustee is appointed by the creditors to oversee the debtor's reorganization plan
  4. A Chapter 7 Bankruptcy Trustee is appointed by the creditors to oversee the debtor's reorganization plan, while a Chapter 13 Bankruptcy Trustee is appointed by the creditors to oversee the liquidation of the debtor's assets
Question 10 Multiple Choice (Single Answer)

What is the role of the Bankruptcy Court in Chapter 7 Bankruptcy?

  1. To approve or deny the debtor's petition for bankruptcy
  2. To appoint the Chapter 7 Bankruptcy Trustee
  3. To oversee the liquidation of the debtor's assets
  4. To discharge the debtor's debts
Question 11 Multiple Choice (Single Answer)

What is the difference between a secured debt and an unsecured debt in Chapter 7 Bankruptcy?

  1. A secured debt is a debt that is backed by collateral, while an unsecured debt is a debt that is not backed by collateral
  2. A secured debt is a debt that is owed to a creditor who has a security interest in the debtor's property, while an unsecured debt is a debt that is owed to a creditor who does not have a security interest in the debtor's property
  3. A secured debt is a debt that is owed to a creditor who has a lien on the debtor's property, while an unsecured debt is a debt that is owed to a creditor who does not have a lien on the debtor's property
  4. A secured debt is a debt that is owed to a creditor who has a mortgage on the debtor's property, while an unsecured debt is a debt that is owed to a creditor who does not have a mortgage on the debtor's property
Question 12 Multiple Choice (Single Answer)

What is the effect of Chapter 7 Bankruptcy on a debtor's co-debtors?

  1. The co-debtors are also discharged from their debts
  2. The co-debtors are not discharged from their debts
  3. The co-debtors are discharged from their debts only if they file for bankruptcy themselves
  4. The co-debtors are discharged from their debts only if the debtor files for bankruptcy under Chapter 13
Question 13 Multiple Choice (Single Answer)

What is the effect of Chapter 7 Bankruptcy on a debtor's future employment?

  1. It will make it more difficult for the debtor to get a job
  2. It will have no effect on the debtor's ability to get a job
  3. It will make it easier for the debtor to get a job
  4. It will depend on the type of job the debtor is applying for
Question 14 Multiple Choice (Single Answer)

What is the difference between a Chapter 7 Bankruptcy discharge and a Chapter 13 Bankruptcy discharge?

  1. A Chapter 7 Bankruptcy discharge is a complete discharge of all of the debtor's debts, while a Chapter 13 Bankruptcy discharge is a partial discharge of the debtor's debts
  2. A Chapter 7 Bankruptcy discharge is a partial discharge of the debtor's debts, while a Chapter 13 Bankruptcy discharge is a complete discharge of the debtor's debts
  3. A Chapter 7 Bankruptcy discharge is a discharge of all of the debtor's unsecured debts, while a Chapter 13 Bankruptcy discharge is a discharge of all of the debtor's secured debts
  4. A Chapter 7 Bankruptcy discharge is a discharge of all of the debtor's secured debts, while a Chapter 13 Bankruptcy discharge is a discharge of all of the debtor's unsecured debts
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